Optimizing Cash APplication With An Order To Cash Automation Solution
Automation Of Cash Application
To meet the ever-increasing demand for cash applications, organizations are evaluating innovative order to cash (OTC) automation solutions. Automated cash application systems can increase order to cash processes, reduce manual workload and improve cash visibility.
This guide is designed to provide executives and those in the C-suite with the information they need to understand how to use an OTC automation solution, and how it can optimize their cash application processes.
Identifying the Cash Application Process
To use an OTC automation solution successfully, first identify the cash application process that best suits organizational requirements. This can be done by mapping out the flow of data, working out the different steps and understanding how decisions leaed to cash application activities.
Developing Automation Rules
Once the cash application process is identified, create set of automation rules to automate the application of cash. These rules should clearly specify how individual transactions will be identified, based on what is known about the payments and how they should be treated. Automation rules should also identify any accounting and general ledger accounts to be debited or credited.
Managing Automated Exceptions
When automating cash applications, the OTC automation solution should be able to manage exception and discrepancies that occur, ensuring they do not go unnoticed and ensure there is visibility of cash inflows. Exceptions, such as payments that do not match the invoice, should be identified and appropriately managed within the OTC automation solution.
Optimizing Operational Efficiency
The OTC automation solution should also be able to drive greater operational efficiency, beyond what is traditionally achievable within manual process. Automating cash application processes can reduce the manual effort required to complete the process and eliminate human error. This can also help improve the accuracy and timeliness of the process.
Reporting and Analytics
The OTC automation solution should include reporting and analytics to give insights into order to cash performance. This reporting should include payment trends, customerspending participation, days sales outstanding (DSO) and other KPIs to measure the performance of the cash application process.
Conclusion
Order to cash automation solutions help organizations gain full visibility over the cash application process, ensuring greater efficiency and accuracy. This guide provides executives with the understanding they need on how to use an OTC automation solution, and how it can optimize their cash application processes.
