Implementing a Global Cash Application Solution
Implementing any solution on a global basis can be a challenge, and cash application is no exception. Addressing such complex issues as multiple currencies, language barriers, a variety of government regulations, and customers with a large number of diverse locations can extremely difficult. However, the benefits and synergies achieved if this model is properly implemented can be significant, making it worth taking on the many implementation challenges, including a number of customer-facing issues.
A Peercast discussion in Peeriosity’s Accounts Receivable (O2C) research area featured a global company with over $70B in annual revenue discussing their journey to make improvements to the Cash Application process by first completing a detailed end-to-end analysis of the process, followed by efforts to centralize work activities where possible, with many of the work activities standardized globally and fully automated using tools including High Radius, SAP Lockbox, Azure, PowerApps, and Power BI.
The end-to-end process analysis included detailed process mapping on a country-by-country basis, with exceptions and differences between countries defined and documented. Next efforts were made to standardize work activities and identify whether activities were transactional or where customer interaction was needed, with a close inspection of the differences between countries or businesses to understand which differences were really needed, and which differences could be eliminated. Finally, based on the type of work activity, transactional work processes were moved to a global delivery model, and work processes that required customer interaction were designed to be delivered either regionally or locally.
For details, Peeriosity members are encouraged to sign into the members’ area to view the complete presentation and listen to the recorded Peercast.
iPolling Results Review
The results from a recent Peeriosity poll provide some interesting detail surrounding company practices related to the application of customer payments. The first question looked at the geographic scope of the cash application solution, with the global design being the most popular with 43% of the responses. This was followed by the multi-regional design (13%), a single region with 13%, a multi-country with 13%, and a single country with 18%.
The second question then addressed the status of implementing a global cash application solution. Looking at the results, 50% have implemented and another 6% have approved doing so. An additional 21% are currently evaluating this approach, while 17% have not yet considered the opportunity. For the remaining 6% the company does not have a global scope.
Here are some of the additional comments from members:
- We have only implemented High Radius for one of our operating entities. We will be evaluating our bank’s private label World Pay solution.
- We have a centralized Cash Applications Team that supports Global Legal entities in the day-to-day cash application.
- We are in the process of setting up High Radius for our Global Cash Applications Team.
- SAP Cash Apps is the primary automation we use for all receivables across all the countries.
There are significant benefits to be realized when a company is able to implement a global cash application solution. While the path to implementation may be filled with a variety of challenges, the ultimate realization of the benefits from this type of design easily outweighs the challenges that may be faced in this type of transition.
What is the status of your company is utilizing a global cash application solution? Is your current solution meeting your needs or is it time to take another look at this important aspect of your Order-to-Cash operation?
Who are your peers and how are you collaborating with them?
“Peercasts” are private, professionally facilitated webcasts that feature leading member company experiences on specific topics as a catalyst for broader discussion. Access is available exclusively to Peeriosity member company employees, with consultants or vendors prohibited from attending or accessing discussion content. Members can see who is registered to attend in advance, with discussion recordings, supporting polls, and presentation materials online and available whenever convenient for the member. Using Peeriosity’s integrated email system, Peer Mail, attendees can easily communicate at any time with other attending peers by selecting them from the list of registered attendees.
“iPolling” is available exclusively to Peeriosity member company employees, with consultants or vendors prohibited from participating or accessing content. Members have full visibility of all respondents and their comments. Using Peeriosity’s integrated email system, Peer Mail, members can easily communicate at any time with others who participated in iPolling.
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