An Automation Prescription for Straight-Through Cash Application

  • 95%+ Cash Application Hit-Rate
  • ~800,000 Remittance Lines Annually
Cash Application Cloud
Business Transformation Stories

Experienced, organized, and professional Project Team with dedicated and knowledgeable resources and a strong commitment to timelines.

Sandra Roth
Manager Trade Financial Management
Johnson & Johnson Consumer Inc.
Challenges
How did HighRadius help
Impact

Challenges

The A/R team started with FEDI partnership for ACH and EDI 820 payments but had multiple implementations due to no standard remittance format.

They then decided to opt for a mainframe exit strategy and look for a solution with sustainability and standardization, risk mitigation and business continuity along with cost avoidance.

Challenges with cash application
  • Issues with non-standard remittances J&J Started with FEDI (Financial Electronic Data Exchange) partnership but had multiple implementations with no end standardization due to no standard remittance format
  • Cumbersome template management Identifying data sent by customer was a hurdle. The A/R teams were constrained by strict Critical-to-Quality(CTQ) requirements like customized template for each customer.
  • IT issues: Cash Application became an expensive and lengthy implementation with costly maintenance where patching and updates were required periodically.
  • There was a genuine lack of Compliant and IAPP requirements satisfaction
ABOUT THE COMPANY

Johnson & Johnson is the world’s sixth-largest consumer health company, the world’s largest medical devices and diagnostics company and the world’s eighth-largest pharmaceuticals company & sixth-largest bio-tech company. Johnson & Johnson has more than 275 operating companies in 60 countries employing approximately 128,000 people

INDUSTRY

Healthcare & Pharma

REGION

North America

REVENUE

$82.1 billion

PRODUCTS

Cash Application Cloud

How did HighRadius Help

Lower operating costs for accurate, same-day, on-invoice cash posting.
Cash Application Cloud automates remittance aggregation from different sources/formats, payment linking, invoice matching, deduction coding, and ERP posting.

Automated Deductions Coding

The cash application solution identifies and auto creates deductions, captures deduction information such as claim number, reason codes and maps customer reason codes to ERP specific reason codes. It eliminates the time and resource lost to manual identification and coding of short payments and helps in faster and more accurate resolution of deductions.

Minimal IT Involvement and Investment

The cloud-based SaaS solution integrates seamlessly with the system and works on a plug-and-play model with minimal intervention with the existing process and near-zero dependence on internal IT team. Users can scale the services to fit their needs and enjoy a subscription-based service that’s kind to their cash flow since pay-as-you-go models allow businesses to pay for only what they are using and not pay heavily on un-used licensing.

Auto Identification of Customers

The solution leverages automation to identify customers based on remittance information provided by the customer. It eliminates the time-consuming manual process of identifying customer before applying cash.

Automated Cash Posting to ERP

The solution enables a centralized cash application process across all operating companies with better visibility and access to real time data. It sends EDI remittance report daily which has balanced payment information in a user friendly format. It also provides the ability to download a full days file versus a check by check file.

Impact

95% Auto Application
~800,000 Remittance Lines Annually

Autopilot for Order to Cash

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