The Road to a Receivables Hub

Transcription

1 The Road to a Receivables Hub Blaine Carnprobst Managing Director, Receivables BNY Mellon Office: Mobile: Lawrence F. BueNner Vice President InnovaSon WAUSAU Financial Systems Office: Mobile:

2 Outline Receivables Hub Defini0on & Purpose Evolu0on of Receivables Processing Integral Parts of A/R & Lockbox Document Imaging Long Term Image Archive Integra0on Of Field Payments Decisioning Services A/R Matching Deduc0ons Consolidated Data Feed Analy0cs & Insight

3 Receivables Hub DefiniSon Ability to aggregate all receivables payments, regardless of payment method Real- 0me (or near real- 0me) access Images for all paper items Robust search and repor0ng features Internet browser access Workflow enabled Business rules engines Consolidated data transmissions

4 Purposes of a Receivables Hub Aggregates payments from all sources Lockbox Checks (paper, image, remote deposit) ACH (pre- auth debit, WEB, TEL, Home Banking,...) EBPP (sesling through ACH or Card) Wire Transfer (FedWire, CHIPS, SWIFT) Cards Common interface architecture (vs. point- to- point) Devoid of business line or customer specific logic Uses a common model that is based on industry standards (e.g. ISO 20022) Consistent payment informa0on from all payment channels 4

5 Purposes of a Receivables Hub (cont.) Provide streamlined remisance details for single (or at least, consistent) A/R feed Electronic data Paper (keyed & ICR d) Cards EDI transla0on EDI re- associa0on 5

6 Purposes of a Receivables Hub (cont.) Repor0ng Standardized & centralized for all payment types Trend analyses Excep0ons Intra- process Decisioning Consistent research & resolu0on tools Workflow func0onality manual & automated Trend analyses Evolving payer knowledge Consistent return item workflow Future possibili0es Mul0- currency Ability to learn and correct common payer issues Real- 0me informa0on Integra0on with Trade transac0ons LC s & Open Account 6

7 EvoluSon of Receivables Processing Checks Remote Deposit ACH Home Banking Electronic Billing & Payment Checks - Branch Checks Lockbox ACH Pre- Auth Debits ACH WEB & TEL ExcepSon Decisioning Deposit Deposit Data A/R Data Check & Doc Images A/R System ExcepS ons FedWire Non-Bank Accounts Credit & Debit Cards Electronic Billing & Payment Merchant Processor A/R Staff 7

8 Integral Parts Building blocks for your lockbox provider becoming more closely integrated to your A/R system: Document Imaging A/R Matching Long Term Image Archive Integra0on Of Field Payments Decisioning Services Extending A/R Matching & Decisioning Integra0ng Even Further Into A/R

9 Document Imaging "The Standard" For Retail & Wholesale Lockbox With A/R transmissions, document imaging assists with excep0on resolu0on Without A/R transmissions, par0cularly lower volumes, A/ R pos0ng can be completed intra- day via images Imaging eliminates the courier costs associated with overnight packages and the internal expense of imaging and filing of paper remisances.

10 Long Term Image Archive Viewing your bank as your Digital Fiduciary Eliminate need for original paper remisances Transi0oning from CD s to Long Term Online Access On- line reten0on for seven to ten years Ease of access & search func0onality Reduces the opportunity for privacy thed by elimina0ng transport of CD or paper remisances No longer restricted to paper lockbox items Adding images of electronic transac0ons (ACH & Wire)

11 IntegraSon Of Field Payments Remote Deposit Capture Check image deposits Payment detail capture Automated pos0ng to General Ledger Quick Books to SAP Mul0ple payment types ACH and credit card from same plahorm Mobile echeck Applica0ons Point of service deposit Improve DSO by 1+ day

12 Decisioning Services Repairs within the lockbox opera0on Systemic Manual / keying queues Intra- day access by receiver s A/R or Credit staff to resolve remaining excep0ons Unbalanced mul0 s, unresolved check- only s, sod stops Extending the strength of lockbox to ACH & Wire Reuse exis0ng lockbox receivables business rules for all payment types

13 A/R Matching Open Invoice File U0lized by Lockbox Processor Match invoice and payment to open A/R items Correct invoice numbers that are truncated, etc. Applying Rules Engines Decision short- pays by reason codes U0lizing pre- determined thresholds Ability to split & merge prior to transmission file Produce clean pos0ng files XML feeds directly to ERP systems

14 DeducSons Hard core excep0ons! Short payments for an0cipated business needs marke0ng deduc0ons Short payments for unforeseen events damaged goods, carrier disputes, failure to comply with buyer terms of shipment, etc. U0lizing workflow Route items based on reason code, amount, or customer Automate the approval escala0on Root cause analysis

15 Consolidated Data Feed History of lockbox data & images geong beser and beser ACH & Wire payments have been excep0ons to this well refined process Bringing ACH & Wire into similar consistent processes Evolving payments & technology will lead the process to be more 0mely

16 AnalyScs & Insight Once data together, puong it to produc0ve use... BeSer understanding of current day receipts Liquidity management & working capital management Transform the data into insight for the receiver Supply Chain Financing (SCF) Globaliza0on / Global Payments / Integra0on with Trade

17 Key Take Away s Inves0gate level of func0onality employed by your Lockboxes - - Are you taking advantage of: Full document imaging (including payment transac0ons & correspondence)? Intra- day decisioning (where it makes sense to use)? Systemic data manipula0on (where feasible)? Integra0on of electronic payment data with paper payment data (A/R data transmission, reports, and document images)? Do you have sta0s0cal reports regarding deduc0ons? Deduc0ons by customer Most common types of deduc0ons Ongoing trend Time to resolve deduc0ons Average daily unapplied cash If you polled your A/R staff, what would be the TOP 3 issues they typically face? What TOP 3 changes do they feel would make their job easier?

18 The Road to a Receivables Hub Blaine Carnprobst Managing Director, Receivables BNY Mellon Office: Mobile: Lawrence F. BueNner Vice President InnovaSon WAUSAU Financial Systems Office: Mobile: