Case Study: The Cash Application Conundrum Lisa Tanner Manager Credit and Collections

BEFORE…

Customer-Related Issues –Multitude of payment forms (Check, ACH, Wire Transfer) –Remittance Detail provided in variety of formats (Paper, EDI, Web, ) –Remittance line items may refer to alternate reference #’s (PO, BOL, etc) –ERP Lockbox System requires direct reference to invoice # to auto-apply

Bank-Related Issues –Bank Keying fees are expensive and produce low on-invoice hit-rate –Labor intensive manual application for all non-standard and residual lines

Coleman’s Conundrum Time consuming Error-prone Manual Expensive

Cross Functional Challenges Poor operational data available relative to root cause margin losses –Consolidation of claims and claim types by check masks residual volumes and prevents identification of potential core operational issues early in the process. (pricing, shortages, case pack, etc) –Creates non value – added tasks to break out claims and types to prepare for credit issuance/rejection and settlement. Difficulty reconciling customer disputes requiring labor intensive research –Home Depot – Costco – West Marine write off losses in excess of 100K due to inability to reconcile credits issued to claims taken.

THE INTERNAL RESULTS….

Let’s Hire an Army of IT Engineers Software Upgrade Support Backup/Restore Service Pack Development Network issues

Our Business Needs… Security Privacy Reliability High Availability

Let’s Build Huge Data Center Capacity Planning Disaster Plan Cooling Management Server Crashes

THE EXTERNAL RESULTS …….

Hosting Players Reliability, High Availability, Capacity Elasticity Cloud Players Built-in Redundancy Virtually unlimited storage, computing power You have to manage reliability, fail over yourself Bring your own or rent servers to increase capacity

Hosting Players Often and dearly Your contracts Cloud Players Pay As You Go Pay only what you use

OK, now tell that to the business owner

How most CEO’s would feel…

HighRadius Solution End to End Automation –Rules Engine handles customer specific rules for invoice matching, residual identification & coding, cash discount analysis. –Data Aggregation Engine Amasses remittance detail from a variety of sources (Customer portals, Bank Websites, FTPs, s,) and formats (EDI, paper, web etc.) –Syndication Engine produces a single file specific to SAP allowing the ability to fully leverage standard ERP cash posting.

Benefits We Experienced… Higher on-invoice auto apply rate 94% and improving Same day cash application Auto-create residuals and capture deduction detail Reduced Post Audit losses Reliable Operations reporting through improved residual visibility –No more consolidation of claims Minimize keying errors Software as a service: –Adding new customers/rules does not require internal IT effort No Additional Hardware Free up resources for more value-added tasks (research & analysis, collections, data entry of credits to relieve AR)

Questions?