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.