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Welcome. Next Generation Receivables Process Management. Agenda. About Open Scan Business Challenges The A/R Opportunity Integrated Workflow Models for Automation Lockbox Distributed Distributed Capture Models Electronic Payments Deductions Automatic Manual Questions.

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Presentation Transcript
slide1

Welcome

Next Generation Receivables Process Management

slide2

Agenda

  • About Open Scan
  • Business Challenges
  • The A/R Opportunity
  • Integrated Workflow
  • Models for Automation
    • Lockbox
    • Distributed
  • Distributed Capture Models
  • Electronic Payments
  • Deductions
    • Automatic
    • Manual
  • Questions
company background
Company Background

Founded in 1998 - based in Denver, Colorado

Software Development Company

  • Enterprise solutions
  • Wholesale environment
  • Accounts Receivable focus
  • Accounts Payable/ECM solution

Initial Clients were/are State Child Support Organizations

  • Installations in 26 states

Current Focus has been Corporate Clients

  • More than 50 commercial clients including 20+ in the Fortune 500

The leader in financial workflow automation including A/R & A/P with proven success in the market for more than a decade.

slide4

Business Challenges

  • Processing payments is more complex
  • Payment types are diversifying
  • B2B paper checks are not going away
  • Decoupled remittances are growing
  • Unauthorized deductions are growing
slide5

The A/R Opportunity

World-Class Organizations are More Efficient in Processing Customer Remittance Transactions

Average Time to Apply Cash (Business Days From Receipt of Customer Remittance Through Successfully Completing the Cash Application to Individual Accounts)

Source: Hackett 2010 Finance Functional BM

Peer Group

World Class

slide6

The A/R Opportunity

Standardized Processes and Automation Increases World-Class Productivity and Lowers Unit Costs in Cash Application

Customer Remittances per FTE

Process Cost* per Customer Remittance

*Process Cost = Labor costs + Outsourcing Costs

Source: Hackett 2010 Finance Functional BM

slide7

The A/R Opportunity

Traditional ways to Process Receivables:

  • Lockbox Processing
  • In-House Processing
  • Electronic Payments

New Technologies allow Corporations to:

  • Maximize Posting Accuracy
  • Decrease Resource Requirements
  • Eliminate Data Entry Costs
  • Optimize Exception and Deduction Handling
slide8

$

Traditional Process

Current Bank Lockbox Options

Mail Arrives at Bank

Bank

Corporate

Lockbox

100k invoice line items

X

20 characters per line

X

$0.01 per keystroke

Remit and Check Data Transmitted to Corporate

Exceptions Handling

$20,000 per month

$$$

Mail Opened and Contents Scanned

Remit and Check Images Transmitted to Web

Direct Keying from Image

Checks Deposited

A/R System

slide9

$

Traditional Process

Current In-House or Distributed Workflow

  • Bad News:
  • Manual cash application
  • Control tape &re-association
  • Risk/Compliance
  • Data quality issues

Mail Arrives at Corporate or Field Location

Mail opened and sorted into batches

Invoices are manually processed into A/R system

A/R System

Checks are physically delivered or scanned and transmitted to bank

Checks are copied

Deposit is prepared

Bank

slide10

$

Lockbox Process

Automated Lockbox Workflow

Corporate

Bank

Lockbox

  • Electronic Remittance:
  • Emails
  • Pdf
  • Excel

Mail Arrives at Bank

  • ACH & CTX /CCD+
  • ACH
  • Wires

Invoice #

Amount

Date

PO #

Customer #

etc.

Remit and Check Images Transmitted to Corporate

AUTO EXTRACT

Mail Opened and Contents Scanned

A/R MATCHING

DEDUCTION ID

POSTING FILE

Checks Deposited

A/R System

slide11

$

In-House Process

Automated In-House Model

Corporate

Mail Arrives at Corporate

Mail Opened and Contents Scanned

Invoice

Amount

Date

PO

Customer #

etc.

AUTO EXTRACT

A/R MATCHING

DEDUCTION ID

POSTING FILE

Electronic Deposit

Bank

ICL CREATION

Cash Application

A/R System

slide12

$

$

$

$

$

Distributed Process

Hybrid (all Locations)

Checks arrive, contents scanned & cash deposited

Corporate

Bank

Data extracted from all images & matched, cash applied, ICL prepared by Open Scan

Images of Checks/Remits Transmitted from Lockbox

Check21 Electronic Deposit

Check and Remit Images Sent to Open Scan Server

Remote Sites

slide13

$

Electronics Processing Workflow

Client

Corporate

Your Bank Sends you: NACHA file,EDI 820,EDI 820 CTX,or EDI 820 CCD+

Your Client Initiates an Electronic Payment (ACH) from their Account

Account #

Amount

Invoice

PO

Customer #

Their Bank Transfers Fundswith a NACHA Compliant Data Feed

DATA IMPORTER

Invoice #

Amount

Date

PO #

Customer #

Etc.

IMAGE CREATION

A/R MATCHING

DEDUCTION ID

POSTING FILE

Depository Bank

Client Bank

Cash Application

A/R System

slide14

Electronics Processing

Search and examine remit(s)

1

2

Examine a payment

This is an image of the

remit

slide15

Electronics Processing

4

Submit

3

Drag and drop. The remit is moved into the payment.

slide16

Invoice123752

-$29

Deduction Identification

Automatic Deduction Identification

Invoice With Deduction

DI Auto

Tax Exempt Code

Freight Code

Small Dollar Code

Net 10 Term Code

Tax Frt Sd Net 10 (5%)

123752 42 68 < 20 29

1237

  • Expected $580
  • Paid $551
  • Codes are Based on Client’s Business Rules
  • Rules are Cross Referenced in Priority Order Based on Clients Preference.

Invoice Received in Under 10 Days

= 5% discount or $29

Automatically Assigned Code – Ready for Processing

slide17

Invoice234644

-$84

DeductionIdentification

Manual Deduction Identification

Invoice With Deduction

DI Auto

Tax Exempt Code

Freight Code

Small Dollar Code

Net 20 Term Code

Tax Frt Sd Net 20

234644 $82 $104 < $20 $55

Broken crate

- $84

Invoice Enters DI Manual and a User Selects the Appropriate Code(s) Through a Simple Pull-Down Menu.

slide18

Major Benefits of Automation

  • Reduction of Data Entry Costs
    • One-time expense
    • True automation, not outsourcing
  • Integrated Payment Workflow
    • Corporate Payments of all types
    • Remote Deposit Capture
    • Electronic payments
  • Improved Data Speed and Accuracy
    • Proven algorithms
    • Validation prior to posting
    • Same day processing
  • Better Customer Service
    • Customers can still remit to the same local site as always
    • Maximizes effectiveness of collections
    • Timely accurate posting reduces unnecessary credit holds
slide20

If you would like to learn more or have additional questions, visit www.openscan.com, e-mail bbonjean@openscan.comor call 303.867.7419

Questions

Thank You For Attending