Intelligent Cash Application

Get Paid Faster.

Companies that are not using automatic cash application software to expedite collection and deduction resolution are giving competitors a potential advantage and leaving themselves at the mercy of their customers’ payment processes and schedules. Where credit departments of the past were accustomed to a few days’ lag time between payment receipt and cash application, auto cash software can reduce that window to just minutes.

Integration

9ci’s Auto Cash/Cash Application Software (CAS) integrates tightly with Accounts Receivable (A/R) systems and enables organizations to automatically apply over 90% of cash receipts from a variety of sources, including lockbox, ACH, EDI, locally received cash payments, and custom file downloads from customer web sites. This solution will effectively and efficiently solve your unique cash receipt processing needs.

An integrated cash application, collection, and deduction management system provides the audit trail and visibility to settle any disputed items. If a customer claims to have paid an invoice with a certain check number, the complete history of receipt, deductions and invoices paid can be reviewed for immediate resolution. Short pays in the case of invalid cash discounts, for example, can be consolidated for later collection. Freight and ad allowances can be established for customers and be automatically cleared as they come in on the remittance. Deductions can be automatically coded, routed, and even cleared before creating and leaving them open on the A/R, thus cutting down the number of open transactions and keeping the A/R as clean as possible.

If your company is still applying cash manually, do any of the following scenarios sound familiar?

  • Payments often reference bad, truncated, or incorrect invoice numbers, purchase order numbers, etc.
  • Rising levels of deductions and chargebacks are consuming increasing amounts of staff time and resources
  • Users are stuck with a non-existent or clumsy import interface for lockbox, Excel, automated clearinghouse (ACH), and electronic data interchange (EDI) deposits and invoice information
  • Multiple ERP systems and/or system migrations (often the result of mergers or acquisitions) cause delayed payment application, and additional accounting cleanup
  • Customer number and other coding required by A/R can’t map to checks encoded with Magnetic Ink Character Recognition (MICR)
  • Coding, tracking and rolling up deductions or unearned discounts is impossible
  • You routinely send multiple invoices to the same customers
  • Customers take undeserved discounts that then should be disputed and collected back but there is no visibility into the data
  • Documents attached to payments are meant to satisfy accounts payable needs, not your receivables needs.

Auto Cash/Cash Application allows companies to simplify their daily cash process, with the proven ability to:

  • Decrease the time and cost of manually entering payments, clearing invoices, and creating deductions; reducing processing time and labor by over 75%.
  • Reduce the number of people involved in the daily cash application process, thus freeing up staff time for more strategic activities.
  • Facilitate faster and more judicious clearing of invoices, resulting in accurate DSO numbers, customer agings and collections stats.
  • Reduce the value and quantity of open chargebacks.
  • Identify customer payment trends and excessive small item write-offs.
  • Validate cash discounts against client terms and produce BillBack documents for unearned cash discounts taken.
  • Establish and automate predefined small balance write offs — specific to customer or customer type — by amount or percentage of invoice.
  • Accommodate multi-division or multi-ERP environments where a single payment spans multiple systems – while handling all intra-company accounting properly.
  • Automatically import lockbox, ACH, and EDI and any other (Website, Excel…) data, and re-associate if the remittance data arrives separate from the check itself.
  • Automatically replace incorrect invoice numbers via matching algorithms.
  • Automatically insert customer number and other coding required by A/R systems.
  • Capture deduction details, translate customer’s reason codes to your codes, capture descriptions and quantities.
  • Automatically create accounting entries: (i.e., debit memos for deductions and credit memos for overpayments or on-account transactions).
  • Automate Credit Memo – Debit Memo matching and netting.
  • Reduce reliance on IT for daily and monthly issues.
  • Provides segregation of duties and a clear audit trail to aid in Sarbanes-Oxley and other compliance efforts.
  • Provide reporting, analysis and ad-hoc query tools to monitor your key business metrics.
  • Set and maintain standardized, predefined rules to keep the A/R clean and clear.

“One major benefit from CashApply was that we didn’t have to ask our customers to change their behavior,” says Dale Davis, Manager of Systems Integrations, Honeywell Global Credit and Treasury Services. “The change was transparent to them. We saved them the trouble of having to change their vendor masters, and that amounted to better customer relations.”

Case studies


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