The aim of the A/P department at the customer company is to pay the invoice amount within DPO (Days Payable Outstanding), and the aim of the A/R department of the receiving company is to reduce DSO (Days Sales Outstanding). This conflict reduces A/R team effectiveness, delays payments, and increases DSO. Collections and A/R teams across industries have accepted the reality of buyer A/P teams driving payment terms and the settlement of disputes and not being a good partner. The efficiency of the A/R Credit and Collections department at an organization depends not only on how effectively teams handle operations internally, but also how they collaborate with the A/P department of the customer companies. To create the perfect dance, it takes two to tango.
Winning A/R teams collaborate closely with A/P teams on invoice, collections and correspondence to ensure payment on the due date. Additionally, technology has developed to a point where it automates all repetitive, clerical tasks, including automating customer correspondence, making the goal of DSO reduction for A/R a harmonious possibility.
Join Elaine Nowak, Director of Product Marketing at HighRadius, as she discusses the latest available A/R automation technology and Senior IOFM Trainer, Judy Bicking, as she unravels 27 years of experience working across A/R and A/P teams and shares five key insights that could help your A/R team perform better in 2017 and bring home the A/R – A/P dance trophy.
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.