Adra RECEIVABLES is a solution for handling payments received, primarily invoiced receivables.
Many companies automatically match their receipts in the accounts system’s accounts receivable. In spite of this, it is not unusual for a lot of the work to be done manually. The reason is often that the working process is complex and has to handle large quantities of data.
- Can handle payments without identity such as invoice number or OCR
- Has a self-learning historical function that remembers earlier transactions
- Can easily update information from three sources: accounts receivable, customer register and bank information.
- High performance – large quantities of data are processed in a short time
- Processes all payments consistently
- Helps you to update accounts receivable and general ledger more quickly
- Helps you to get reminders more quickly
- Gives you a better overview of vouchers from the bank
- Is not person-related
- Gives you better control of liquidity
- Gives supplementary information about both the payment and the payer
RECEIVABLES can be used in the following three scenarios:
We have already automated our flow of payments received, but we receive many payments that cannot be automatically matched against accounts receivable.
If you receive a large number of payments, it is unavoidable that some invoices will be paid stating incorrect references. Primarily in the business to business sector. It is not possible to control what the customer enters as free text with the aid of e.g. OCR number (hard or soft). The reason so much time is taken up in processing incorrect payments is that the accounts system does not have an interface that can, in a structured way, bring together the three sources of information that are needed to identify the payment. After payments received have been read into the accounts system, it is normal for unplaced payments to go into a special account. When investigations are made, the accounts system has cut off information that is important for being able to place the payment. This means that yet another visit must be made to the bank file interface to find the customer in the customer register and then as the next step find the receivable in the accounts receivable.
RECEIVABLES can easily bring together data from the three sources – accounts receivable, customer register and all bank information – so as to automatically match and then make it easier to search for the remaining payments.
We have successfully automated domestic payments but payments from abroad are not supported by our accounts system.
The accounts system in use is often designed to be able to automate the domestic flows, such as bank giro payments. However the systems are seldom designed to handle foreign payments. RECEIVABLES can read these file formats and after matching with accounts receivable convert the foreign format to a format known to the accounts system. Information with foreign payments is often limited and automatic matching without advanced logic can be difficult.
We do not have automatic matching of payments received or our system does not support the bank’s file format.
If you have not yet automated your payments from customers, our recommendation is to do so as soon as possible. Reconciling payments manually is costly and time consuming. Especially when there are large quantities involved.
If you have large numbers of incoming payments that are not currently being matched automatically. Contact Adra for a demonstration of RECEIVABLES . We can show you how to automate the entire flow from start to finish.
If you do not have many incoming payments, we recommend that you approach the supplier of your accounts system to investigate the possibility of direct reading into the accounts system. This may sometimes be difficult, expensive or require an upgrade of the whole accounts system. RECEIVABLES is an additional function that is suitable for all business systems. Contact us; we will be happy to help with a suggested set up.
Even with small quantities, the flow of incoming payments can still be complex. Direct reading in without logic can cause more difficulties than it saves. Contact Adra to discuss various structures right from stage one.
Whether the payments are domestic or come from abroad, you always work with three information sources to allocate the payment.
- The bank file, information about the payer and what free text the payer gave (invoice number, order number etc…)
- Accounts receivable, all open receivables
- Customer register, all registered customers
The three information sources are separate from each other. In other words, when you are working with unallocated payments you must use all three sources to allocate the payment received. RECEIVABLES most unique function is that it can easily link the three information sources in one database and use the payment history to learn the payment pattern. The more RECEIVABLES is used, the more it learns. RECEIVABLES also has advanced rules for automatically matching payments received for reconciliation, which greatly reduces the number of unallocated payments.
Example: A customer pays an invoice that is matched in RECEIVABLES and later makes another payment without stating an invoice number. RECEIVABLES can go through the payment history and suggest where the new invoice should be allocated even though the invoice number is missing.
It is also quite common for the accounts system’s accounts receivable not to support the format of the payment received. RECEIVABLES is a dynamic product that can convert file formats from the bank to a format that the accounts system can interpret.