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Transforming Cash Application to Achieve 82% Automated Cash Posting- The EBSCO Way

  • 82% Automated Cash Posting
  • 72% Deductions Auto-Coded
  • 33% of Resources Reallocated to Higher Value Tasks
  • 100% Elimination of Lockbox Fee – Saving $64,000 Annually
Cash Application
EIPP
Business Transformation Stories
Video Testimonial
Challenges
How did HighRadius help
Impact

Challenges

Manual Remittance Aggregation and Deduction Coding for a Huge Volume of Invoices Impacting Team’s Productivity

Being a leading media and publishing company, EBSCO was responsible for handling more than 35K active customers and 240K invoices annually. They encountered massive volumes of short payments and deductions. Therefore, the six-member cash application team was losing a lot of time in performing manual tasks like remittance aggregation and deduction coding.

Cash Posting for Payments with Missing Remittances leading to Slower Cash Application

EBSCO received a high volume of payments with missing remittances information from more than 1000 customers. Processing such payments required a lot of manual coordination across teams with a high percentage of payments being unapplied or posted on-account.

Erroneous and Time- Consuming Payment Processing for Complex Parent-Child Business Scenarios

EBSCO was dealing with multiple parent-child scenarios and cash posting for payments made by a parent company for invoices raised by its subsidiaries was a major challenge for their A/R team. Handling such complex business scenarios manually, further delayed their cash posting.

Error- Prone Lockbox Processing for Check Payments Resulting in High Bank key-in Fees

The majority of payments received by EBSCO were check payments that contributed to 52% of the payments landscape. These payments were processed using bank lockbox files and custom programs in SAP, yielding a low on-invoice match rate of 25%. Moreover, the lockbox fee for keying-in data resulted in an additional burden of $64,000 per year on company accounts.

Delayed Payment Processing for Credit Card Payments leading to Poor Customer Experience

The A/R team faced a significant roadblock in handling multiple types of payments coming in. They needed a way to bring structure into this along with enhanced customer experience. For instance, EBSCO had 100% manual payment processing for credit card payments where they had to rely on the A/R representatives which slowed down their cash posting process and negatively impacted their customer experience.

ABOUT EBSCO

EBSCO is a leading discovery service provider for libraries with more than 11,000 discovery customers in over 100 countries. It provides research databases, e-journals, magazine subscriptions, ebooks, and discovery services for academic institutions and public libraries.

INDUSTRY

Media & Publishing

REGION

North America

REVENUE

$2.8 Billion

PRODUCTS

Cash Application,
EIPP

Carolyn Etress

EBSCO already had an effective cash application process in place with multiple business process improvement consultants helping us out. It was difficult to imagine that any provider could improve that beyond what it already was.

Carolyn Etress
Director of Accounts Receivable
EBSCO

How did HighRadius Help

Carolyn Etress

Our experience working with HighRadius was outstanding. With the Cash Application implementation, we were immediately able to realize operational expense savings that we were promised for EBSCO because we had a large team working manually, processing scores of payments.

Carolyn Etress
Director of Accounts Receivable
EBSCO

Impact

Automated Cash Posting
Deductions Auto-Coded
Resources Reallocated to Higher Value Tasks
Elimination of Lockbox Fee Saving $64,000 Annually

Autopilot for Order to Cash

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