Introduction When we looked at the organizational alignment of the Credit Function in one of last month’s articles, we noted that Credit was part of an Order-to-Cash process in Shared Services for 39% of companies, with 22% having credit reporting into Treasury. The majority of companies, at 75%, were either very satisfied or satisfied with […]
Introduction With its close ties to the Sales organization at most major companies, the Credit function organizational alignment can be found aligned with a variety of organizations, including Corporate Finance, Business Unit Finance, Treasury, Sales Administration, and Shared Services, to name just a few. While the trend in recent years has been for Credit to […]
Introduction A significant percentage of large corporations utilize highly advanced ERP systems, such as SAP and Oracle, which have AutoCash rules to determine how to automatically apply for customer payments. These advanced systems use the customer’s open balance, along with the AutoCash rules set up in the ERP, to determine how to apply receipts and […]
Introduction When you consider the different components of Accounts Receivable (AR), according to Peeriosity’s Process Design Survey 45% of member companies have the Billing process in Shared Services, 41% include Credit Administration, and 59% include Customer Payment Processing and Cash Application as part of that structure, making the AR process one of the most likely […]
Introduction The past decade of Business Process Outsourcing (BPO) has seen the growth of a multi-billion dollar industry that has its share of successes, notable failures, and many experiences that fall somewhere in between. Outsourced provider employees can be “offshore”, “near-shore”, or “onshore”, using either new staff or, in some cases, re-badging the existing workforce. […]
As Robotic Process Automation (RPA) and Artificial Intelligence (AI) quickly become part of the nomenclature for Shared Services, almost every conference topic or vendor pitch includes mention of the terms. While the world is exploding with excitement, the reality of penetration rates continues to lag far behind the hype. How do you sort through the […]
It is no secret that extensive use of automation is one of the key success factors for any Order-to-Cash operation, regardless of the industry or geographic location. The challenge for many companies is developing a comprehensive strategy to identify and deploy the powerful technology options that are now available to companies across the globe. The […]
Making improvements in the cash application process using automation can significantly reduce labor costs, increase cash flow, and improve external customer satisfaction. Many Shared Service organizations are having success in improving Autocash matching rates and eliminating inefficiencies in the cash application process. A recent PeercastTM in the Accounts Receivable (O2C) research area featured a global […]
As is the case with many process areas, the use of technology to dramatically improve the efficiency and effectiveness of the Credit & Collections process has been the recent experience of companies across the globe. While ERP systems continue to improve their functionality in this area, there are a number of bolt-on solutions that can […]
Accounting policies regarding past due trade receivables can vary significantly among major corporations, depending on such variables as an industry, geographic location, and government regulation. In addition to the primary decision as to whether interest and/or penalties should even be charged, are the specifics surrounding such issues as the criteria utilized to determine which accounts […]