Cashbook Limited by bud19087

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									Cashbook Limited
"Lockbox Auto Cash
Management and Application"




                                  Greg Coulter – Chief
                                   Executive Officer
                              greg.coulter@cashbook.com
                                support@cashbook.com
                                                         1
                   www.cashbook.com
Agenda:
Lockbox Auto Cash Application:
•AR: How to achieve straight through processing
from Lockbox files into your ERP system

•AR: Automatically handle customer provided
remittance files including EDI, XML, Excel, Scanned
and Hard Copy

•AR/AP: Automatically reconcile bank statements to
your ERP system's General Ledger

•AR/AP: Work transparently with multiple currencies

•AP: Use electronic payments to reduce cost and
increase transactional accuracy
Payment Process
By Region:




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Question 1:




  • AR: How to achieve straight through
  processing from Lockbox files into
  your ERP system




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Bank Lockbox


       Mail arrives                      Remittance & Cheque data
Bank                   Mail opened and       manually keyed          Cheques
                      contents scanned                              Deposited




                                                                    My Coy




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Wachovia Sample Lockbox Scan




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Question 1:




• What is a Lockbox File?

• How Do I Get An Electronic Lockbox File?




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Who Provides Your Lockbox File?
Bank Specification
Bank Sample File




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Bank Lockbox File
Structured File Layout




                                 Bank Lockbox file has
                                 invoices, payment amounts
                                 for multiple customers




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Choices: Accounts Payable
Bank Capabilities Improving
Bank Files Received




                          • Banks Typically Charge By
                          Keystroke


                          • How many fields do you
                          need? Gross/Net Amounts,
                          Discount Values, Invoice
                          Numbers, PO Numbers etc


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Bank Lockbox


  Bank
                Mail arrives                               Remittance & Cheque data
                                  Mail opened and              manually keyed                Cheques
                                 contents scanned                                           Deposited




                                         Matching
                                        Algorithms
           er
       m
     to
C us

                AR & GL in ERP
                system updated   Upload file into Cashbook and      Lockbox file received
                                    Auto-Allocate to match
                                  transactions with AR data


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Cash Application Issues:
• Who Pays You and How Do they Pay?
• Do you have a Bank Lockbox Process?
• What % of Invoices Are Your Top 10 Customers?
• What % of Deductions Are Your Top 10 Customers?
• Are you getting EDI files? Excel Files / EDI 867 files?
• Numerous Paper Remittances?
• Customer Deductions / Chargebacks / Credit Notes ?
• Partial Payments / Overpayments / Unallocated Cash ?
• Is Deductions/Reconciling A/C’s?
• Payments on order/invoice/purchase order numbers ?
• Do you have Buying Groups not reflected in the ERP Accounts?
• Manual Cash Receipts & Bank Reconciliation ?
• Multiple ERP systems/Versions ?
• Countries/Currencies Involved in Process ?
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Cashbook Algorithms
Name                      Matching Rules                                                    Allocations

Exact Match               Invoice Payment Amount on Remittance equals Amount                Allocate Invoice: Discount allocated if allowed
                          outstanding on Invoice with / without Discount                    subject to Discount Validation

Exact Match with          Invoice Payment Amount on Remittance (subject to Tolerance        Allocate Invoice: Discount allocated if
Tolerances                Levels) equals Amount outstanding on Invoice with / without       allowed subject to Discount Validation
                          Discount available
Summed Remittance         Where remittance contains multiple lines with same Invoice        Full Allocation of Invoice: Discount allocated
Lines                     Reference:Sum of Invoice Payment Amounts on Remittance            if allowed subject to Discount Validation
                          equals Amount outstanding on Invoice
Allocate Payment          Where Invoice Payment Amounts have not been listed on             Full Allocation of Invoice
                          Remittance (or full payment listed against first invoice):        Discount allocated if allowed subject to
                          Check if Total Payment Amount equals Sum of Invoices listed       Discount Validation
                          with / without Discount available
Summed Remittance         Where remittance contains multiple lines with same Invoice        Allocate Sum of Payment Amounts against
Lines Under/Over          Reference: Sum of Invoice Payment Amounts on Remittance           Invoice, resulting in under/over payment
Payment                   does not equal Amount outstanding on Invoice
Under/Over Payments       Invoice Payment Amount is less than or greater than Amount        Allocate Payment against Invoice
                          outstanding on Invoice                                            Discount may be allocated if taken subject to
                                                                                            Discount Validation
Exact Match & Auto        Per Exact Match scenario above, but if Invoices are short-paid    Allocate Invoice in Full
Create Deductions         because unauthorised Discounts taken and not allowed as part of   Create Customer Deduction for the Short
                          Discount Validation                                               Payment
Under Payments & Auto     If Invoices are short-paid on Remittance                          Allocate Invoice in Full: Create Customer
Create Deductions                                                                           Deduction for the Short Payment
Create Deductions for     Unmatched Items on Remittance                                     Create Customer Deductions for the
Unmatched Items              Debit Amounts only                                            Unmatched Items
                             Credit Amounts only
                             Both
Create Unallocated Cash   Unmatched Items on Remittance                                     Create Unallocated Cash splits for the
for Unmatched Items          Debit Amounts only                                            Unmatched Items
                             Credit Amounts only
                             Both
Cash Application Algorithms




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Your Business:
Customer Profiles


    My Coy




                       2. Small Customers
                                              3. Unequal Customers
 1. Large Customers    Dominate: Checks
 Dominate: EDI Files                          Eg. Mom & Pop’s &
                       Eg. Mom & Pop’s
                                              Large Retailers
 Eg. Automotive
                       Lockbox Automation
                                              Lowes, Target, Home
 EDI File Automation
                                              Depot, McKesson
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Shared Service Centers:
Consolidate Payments By Region




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Bank Statement File
Semi-Structured File Layout




                              Bank Statement file has semi-
                              structured data so must parse
                              all the fields




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Bank Statement File
Semi-Structured File Layout




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Bank Statement
Automation Rules




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Question 2:




   •AR: Automatically handle
   customer provided remittance
   files including EDI, XML, Excel,
   Scanned and Hard Copy



                www.cashbook.com
PDF & Excel Uploads




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Cash Application
File Automation




  Bank         Bank           PDF/Excel   EDI
  Lockbox      Statements     Files       Files



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Customer Structures
are Challenging                                                      What Level Do
                                                                     Customers Pay You?
                                                                     What Level Can You
                                                                     Apply Cash?
                              Headquarters



                 Parent                            Parent


      Customer            Customer         Customer          Customer     Customer


  Invoice   Deduct   Credit     Invoice   Deduct   Invoice      Credit   Invoice   Invoice
Cashbook Overview:
Customer Hierarchy
                                            DHL


 DHL GLOBAL FORWARDING    DHL LOGISTICS           DHL INTERNATIONAL   DHLEXPRESS
        (280706)            (281101)                   (281102)        (330002)
                                                                              )




                           DHL EUROPE
                            (281105)




                               Payments received as follows:
      Customer           Cust No.          Inv No.                         Amount
        DHL              280706 100220/100221                              2,000.00
        DHL              N/A         100508/100509/100510
                                     200027/200026/100222                  7,534.00




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Scan-Convert Paper to Images




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Interpret - Remittance Data



• Find relevant keywords and logos,
  anywhere on the remittance.
• Relevant characters adjacent to
  each keyword are interpreted
• Business Logic is used to locate
  and validate fields.




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Verify - Remittance Data




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“OCR Created” Bank Lockbox File




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