13 Everyday Remittance Scenarios: Unlucky for Cash Application?


This e-book is an actionable summary that drills down the challenges in remittance processing and best-practices to build a robust remittance processing workflow for checks and e-payments

Contents

Chapter 01

Executive Summary

Chapter 02

13 Everyday Remittance Scenarios

Chapter 03

AI-enabled Remittance Capture

Chapter 04

About HighRadius
Chapter 01

Executive Summary


Is Your Cash Application Slow And Error-prone?

Complex remittance processing could be the reason

Straight-through processing is when payments are posted against open invoices in your ERP without any manual intervention.

As per a survey by NACHA-CRF 67.5% respondents have less than 60% straight-through posting. Adoption of varied e-payment formats and non
standardized remittance details could be the reasons for these low numbers.

Payment Trends
 

What Ideal Remittance Processing Should Resemble

A well-oiled assembly line

 

Remittance processing assembly line
 

In a perfect world, the A/R department would receive all its check payments with remittance details keyed-in by the bank and all its e-payments accompanied with standardized remittance advice that could directly be reconciled for cash posting. The direct match between the invoice numbers on the remittance and invoices would create a true straight-through process.

 

Picture About Ideal Remittance Processing
 

The Real Picture of Remittance Processing

Too much variability in remittance scenarios

 

Due to the lack of any standardization, remittances continue to come from various sources and in various formats and templates. Each remittance scenario has a series of variable tasks, which prevent analysts from achieving the rhythm of an assembly line.

An AS-IS evaluation of cash application process indicates that most of the variability lies in two steps:

       1. Remittance fetching

       2. Interpretation of data

 

 

Picture of Remittance Processing
The consequences of this variability are:

Error-prone process

A highly manual and repetitive process leads to erroneous cash posting and additional burden on analysts for resolving exceptions.

 

Delayed cash posting

Time consuming activities of fetching and entering data slows down the cash application process. Analysts struggle to post cash the same day during
seasonal spikes.


Low employee morale

High volume of low-value tasks without any strategic impact reduce cash application analysts to cash application clerks. Their entire days are spent chasing transactions and spreadsheets.

 

Features of eBook
 

Chapter 02

13 Everyday Remittance Scenarios


Email Body
Email attachment
Web Portal
EDI
Clubbed with e-payment
Check stubs
Remittance before payment
Bank statement files
Clubbed with claims
Non-reference numbers
Consolidated remittance consisting of multiple invoices
Incorrect remittance
Missing remittance
 

 

 

Chapter 03

AI-enabled Remittance Capture


End-to-end Automation For Remittance Capture

End-to-end Automation For Remittance Capture

Staying future-ready with Artificial Intelligence

 

Artificial Intelligence transforms the remittance capture process from an ad-hoc, unstandardized set of processes to an assembly-line approach. Due to the template-free technology, it supports all forms of remittances, making it future-proof and helps your team in accepting more e-payments that tend to come with decoupled remittance details.

The key benefits associated with AI-enabled remittance capture are:

  • Cut costs on lockbox feesAI-enabled OCR captures check remittance data automatically, removing any dependency on bank lockbox services or in-house resources for key-in, thereby reducing costs
  • Eliminate templates with an AI-based capture engine that growssmarter over timeTemplate-free technology based on AI captures all remittance details even when thecheck stub comes in a non-standardized or unfamiliar format
  • Achieve 95% posting rate by eliminating errors associated with manual data entrySelf-learning OCR captures data with 95% accuracy, eliminating the need forexception handling when posting check payments
  • Free up resources for strategic credit and collections activitiesAutomate manual tasks of email remittance aggregation and data reading to focus resources on strategically important A/R operations
Chapter 04

About HighRadius


HighRadius is a Fintech enterprise Software-as-a-Service (SaaS) company. The HighRadiusTM Integrated Receivables platform reduces cycle times in the order-to-cash process through automation of receivables and payments across credit, electronic billing and payment processing, cash application, deductions and collections.

Powered by the RivanaTM Artificial Intelligence Engine and FredaTM Virtual Assistant for order-to-cash teams, HighRadius enables organizations to leverage machine learning to predict future outcomes and automate routine labor-intensive tasks. The radiusOneTM B2B payment network allows suppliers to digitally connect with buyers, closing the loop from supplier receivable processes to buyer payable processes.

HighRadius solutions have a proven track record of optimizing cash flow, reducing days sales outstanding (DSO) and bad debt, and increasing operational efficiency so that companies may achieve strong ROI in just a few months.

To learn more, please visit www.highradius.com

HighRadius’ Integrated Receivables Platform

HighRadius’ Integrated Receivables Platform
Integrated Receivables optimizes accounts receivable operations by combining all receivable and payment modules into a unified business process. The Integrated Receivables platform provides solutions for credit, collections, deductions, cash application, electronic billing, and payment processing – covering the entire gamut from credit-to-cash.

The HighRadiusTM Integrated Receivables platform stands out by enabling every credit and A/R operation to execute real-time from a unified platform with an end goal of lower DSO, reduced bad-debt, and faster dispute resolution while improving efficiency and accuracy for cash application, billing, and payment processing.

HighRadiusTM Integrated Receivables leverages RivanaTM Artificial Intelligence for Accounts Receivable to convert receivables faster and more effectively by using machine learning for accurate decision making across both credit and receivable processes. The Integrated Receivables platform also enables suppliers to digitally connect with buyers via the radiusOneTM network, closing the loop from the supplier Accounts Receivable process to the buyer Accounts Payable process.

Chapter 01

Executive Summary


Is Your Cash Application Slow And Error-prone?

Complex remittance processing could be the reason

Straight-through processing is when payments are posted against open invoices in your ERP without any manual intervention.

As per a survey by NACHA-CRF 67.5% respondents have less than 60% straight-through posting. Adoption of varied e-payment formats and non
standardized remittance details could be the reasons for these low numbers.

Payment Trends
 

What Ideal Remittance Processing Should Resemble

A well-oiled assembly line

 

Remittance processing assembly line
 

In a perfect world, the A/R department would receive all its check payments with remittance details keyed-in by the bank and all its e-payments accompanied with standardized remittance advice that could directly be reconciled for cash posting. The direct match between the invoice numbers on the remittance and invoices would create a true straight-through process.

 

Picture About Ideal Remittance Processing
 

The Real Picture of Remittance Processing

Too much variability in remittance scenarios

 

Due to the lack of any standardization, remittances continue to come from various sources and in various formats and templates. Each remittance scenario has a series of variable tasks, which prevent analysts from achieving the rhythm of an assembly line.

An AS-IS evaluation of cash application process indicates that most of the variability lies in two steps:

       1. Remittance fetching

       2. Interpretation of data

 

 

Picture of Remittance Processing
The consequences of this variability are:

Error-prone process

A highly manual and repetitive process leads to erroneous cash posting and additional burden on analysts for resolving exceptions.

 

Delayed cash posting

Time consuming activities of fetching and entering data slows down the cash application process. Analysts struggle to post cash the same day during
seasonal spikes.


Low employee morale

High volume of low-value tasks without any strategic impact reduce cash application analysts to cash application clerks. Their entire days are spent chasing transactions and spreadsheets.

 

Features of eBook
 

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HighRadius Cash Application Software enables the end-to-end automation of the cash application process that covers major benefits such as AI-enabled data capture for remittances, auto-linking of payments with open invoices, cost-cutting on lockbox fees and easy compatibility with any system due to its ERP-agnostic Saas infrastructure. Apart from the major benefits that it has, there are some key features which can not be missed out, some of them are Email Remittance capture, Discounts and Deductions Handling, Check Remittance Capture, Web Remittance Capture, Invoice Matching, and RDC & Mobile Payments.