{"id":4173,"date":"2019-11-21T18:53:16","date_gmt":"2019-11-21T18:53:16","guid":{"rendered":"https:\/\/www.peeriosity.com\/shared-services\/articles\/?p=4173"},"modified":"2022-09-01T20:54:37","modified_gmt":"2022-09-01T20:54:37","slug":"automating-the-cash-application-deduction-clearing-process","status":"publish","type":"post","link":"https:\/\/www.peeriosity.com\/shared-services\/articles\/2019\/11\/automating-the-cash-application-deduction-clearing-process\/","title":{"rendered":"Automating the Cash Application Deduction Clearing Process"},"content":{"rendered":"\r\n

Introduction<\/strong><\/p>\r\n\r\n\r\n\r\n

While many Peeriosity member companies perform Cash Application processing<\/a> using a broad geographic scope and an end-to-end process design, challenges often remain for achieving the highest levels of automatic processing.\u00a0\u00a0 For many companies, the deduction validation and clearing process is primarily a manual process, regardless of whether the process is insourced or outsourced to a third party.\u00a0<\/p>\r\n\r\n\r\n\r\n

Ensuring that policies and procedures, including detailed desk procedures, are consistently understood and followed with any exceptions identified and defined is a key success factor for any Shared Services operation.\u00a0 For many, this means defining a process for quality audits<\/a> of all Standard Operating Procedures as a check on compliance.<\/p>\r\n\r\n\r\n\r\n

iPollingTM<\/sup> Results Review<\/strong><\/p>\r\n\r\n\r\n\r\n

Recently the Director of Global Business Services for Accounts Receivable<\/a> at a Peeriosity member company created a poll to better understand how peer companies were performing the deduction clearing process.\u00a0 The first poll question asked about where the process was performed and whether or not automation tools were utilized.\u00a0 The results indicate that 81% of member companies perform the deduction validation and clearing process insourced (performed in-house), with only 13% indicating that their insourced process utilizes automation tools.\u00a0 For the 7% of member companies who outsource the process, none report that their outsourced process<\/a> for validation and deduction clearing is automated.\u00a0 Here are the details.<\/p>\r\n\r\n\r\n\r\n

\"cash<\/figure>\r\n\r\n\r\n\r\n

The second poll question looked at the type of tool being utilized for companies that have automated processes.\u00a0 60% of member companies with an automated solution use a third-party tool, 20% are using a custom automation tool, and 20% indicate that they are using a tool that leverages their ERP system.\u00a0<\/p>\r\n\r\n\r\n\r\n

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\"best<\/figure>\r\n<\/div>\r\n\r\n\r\n\r\n

Below are several of the comments from Peeriosity members that provide additional insight:<\/p>\r\n\r\n\r\n\r\n