Improving the Invoicing and Payment Process

How Fortune 1000 companies and SMEs automate credit and accounts receivable operations to improve productivity and reduce DSO and past-due A/R.


Chapter 01

Executive Summary

Chapter 02

Customer Onboarding and Credit Approval Process

Chapter 03

Eliminating Subjectivity from the Credit Review Process

Chapter 04

Improving the Invoicing and Payment Process

Chapter 05

Deciding Who to Contact on Any Given Day

Chapter 06

Collections Correspondence Strategies

Chapter 07

Doubling Down on Collections by Eliminating Waste from Cash-Application Process

Chapter 08

Eliminating Waste from the Deductions Process

Chapter 09

Leveraging a Connected Platform for All of Credit-to-Cash

Chapter 10

Collaborating with Buyer A/P teams

Chapter 11

Chapter 04

Improving the Invoicing and Payment Process

Studies have said that companies are able to reduce DSO by 3-10 days with electronic invoicing. By adopting electronic invoicing credit departments are able to reduce the dependence on print and mail for timely delivery of invoices while also reducing costs in the process.

3.1. Top Challenges in the Invoicing and Payments Process

The top challenges associated with paper-based invoicing process are listed below:

  • Paper based processes for invoicing that causes delays in sending and receiving
  • Inability to track delivery
  • High cost
  • Non-standardized customer experience

The top challenges associated with accepting electronic payments are:

  • Expensive procedures for complying with PCI-DSS guidelines
  • Lot of work for internal teams to apply cash as remittance comes in from a variety of sources including EDI, website, and email
  • Expensive to accept credit card payments because of the transaction costs
  • Disconnected invoicing and payments systems that cause repetitive work for collections analysts to retrieve invoices and accept payments

3.2. How Top Organizations Deal with Invoicing and Payments

Creating a self-service portal for both invoicing and payments is the first step. This removes the wastage in the collections process where roughly 20% of collector?s time is wasted in re-sending invoices to customers. This is enabled with a centralized online repository of invoices that can be accessed anytime by customers. Top features that organizations leverage in these portals are:

  1. Self-service portal where customers can retrieve their invoices
  2. Ability to make payments through multiple options including ACH and credit cards
  • PCI-DSS compliance for accepting credit-card payments by enabling processor tokenization
  1. Lower card payment acceptance costs by leveraging Level III Interchange fees
  2. Tight linking into the A/R module to enable customers to create deductions right from the EIPP portal
  3. Ability to send/receive invoices on fax
  • Automated print and mail service to customers who still demand paper-based invoices

3.3. EIPP Success Stories: Reckitt Benckiser

Reckitt Benckiser(RB) the leading consumer goods manufacturer had an expensive paper-based process for invoicing as SMBs depended on paper-based invoices while large customers were already using EDI for invoicing. By moving to an EIPP portal, RB was able to provide SMBs with lower cost e-invoicing options including e-mail and portal-hosted invoices to reduce the electronic invoicing cost by 98%. Yaskawa America Inc, the American manufacturer of HVAC products saved $12,000 on credit card payments with a PCI-DSS compliant credit card processing solution by leveraging level III data in the ERP for maintenance and repair orders.


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HighRadius Integrated Receivables Software Platform is the world's only end-to-end accounts receivable software platform to lower DSO and bad-debt, automate cash posting, speed-up collections, and dispute resolution, and improve team productivity. It 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 and 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. Integrated Receivables have been divided into 6 distinct applications: Credit Software, EIPP Software, Cash Application Software, Deductions Software, Collections Software, and ERP Payment Gateway - covering the entire gamut of credit-to-cash.