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Remittance Challenges
Digital Worldin a
Gary Halleen, CEO, President, API Outsourcing Inc.
Centreviews
Simple to use
Scalable to meet future growth
Secure & cloud based
The Centreviews Business Intelligence Suite, is a unified suite of solutions for accounts payables, accounts receivables, and document management.
Vendor processes order
Vendor sends invoice to buyer
Buyer receives and captures invoice
Buyer processes invoice
Buyer delivers payment, remittance,
and deduction
Vendor receives payment
Vendor receives remittance and
deductions
Vendor reconciles remittance with
deduction payment
Buyer orders
Vendor receives order
PAYABLES
RECEIVABLES
Vendor & Buyer
Centralized Archive
The Digital World
Portal
The Problem
Electronic Payments Are WonderfulPayments from multiple financial institutions
Single payment for many invoices with no remittance
Difficult to match payments, invoices & remittance informationACH, wire, card, remittance & deductions through different sources
Why This Is Happening
Traditional Lockbox VS Electronic Payments
Remittance with check Remittance by email, EDI, etc
Payment information from MICR Payment information in file
Remittance captured by seller or bank Remittance captured by seller and/or 3rd party
Match payment, remittance & invoice by seller Match payment & remittance by seller and/or 3rd party
Why This Is Happening
Use of Checks
%9%
18%27%36%45%54%63%72%81%90%
2004 2007 2010 2014
81% 74% 57% 50%
Source: Federal Reserve System. 2013 Federal Reserve Payments Study. July 2014. Print.
Why This Is Happening
Electronic PaymentsAre you ready to match separate remittance
from multiple sources with 85% of your payments?
Source: Federal Reserve System. 2013 Federal Reserve Payments Study. July 2014. Print.
43%
34%
9%
15%
Somewhat LikelyVery LikelyMajority Already ElectronicNot At All Likely
Why This Is Happening
Advantages for Buyer/PayerElectronic Payments & Remittance
Pay just in time, extend DPO
Reduce labor, check & postage costs
Minimize opportunity for fraud
Why This Is Happening
Disadvantages for Seller/ReceiverElectronic Payments & Remittance
Multiple sources for remittance information
More costly to match remittance & payments
Longer to complete cash application, increases DSO
Why This Is Happening
Receiving RemittanceMethod of Sending ACH Remittance Information
% 10% 20% 30% 40% 50% 60% 70% 80%
EmailEDI/CTX
Regular MailFax
3rd Party WebsiteSellers WebsiteBuyers Website
Other
Source: Federal Reserve System. 2013 Federal Reserve Payments Study. July 2014. Print.
Remittance Challenges
Remittance Matching IssuesCash application is time sensitive
Peaks & valleys with receiving payments
Staffing difficulties
Burnout & overworking
Having an electronic payments with manual remittance matching is like having a freeway going into a single lane road
How Do You Deal With This Change
Electronic Payments with Manual Remittance
How Do You Deal With This Change
Understanding Your StandingRequirements & Definition
Do you understand your current processes?
Do you have challenges in your current processes?
Do you have the expertise to solve these challenges?
How Do You Deal With This Change
Considering an In-House Solution
Do you have the IT resources for development, support?
Do you have the knowledge and expertise?
Do you have the time to dedicate to the project?
How Do You Deal With This Change
Considering a Software as a Service Solution
No capital investment & minimal IT resources
Rapid implementation of solution
Provides expertise in back-office processes & technology
SummaryWire
ACH
Card
EDI/CTX
Email Buyers Website
ERP System
Invoice
Data Merged
Remittance
Payment
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