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Welcome. Next Generation Receivables Process Management. Agenda. About Open Scan Business Challenges The A/R Opportunity Integrated Workflow Models for Automation Lockbox Distributed Distributed Capture Models Electronic Payments Deductions Automatic Manual Questions. - PowerPoint PPT Presentation
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Copyright 2011 Open Scan Technologies, Inc. All Rights Reserved.© Copyright 2012 Open Scan Technologies, Inc.
Next Generation Receivables Process Management
Welcome
Copyright 2011 Open Scan Technologies, Inc. All Rights Reserved.© Copyright 2012 Open Scan Technologies, Inc.© Copyright 2012 Open Scan Technologies, Inc.
Agenda
About Open Scan Business Challenges The A/R Opportunity Integrated Workflow Models for Automation
Lockbox Distributed
Distributed Capture Models Electronic Payments Deductions
Automatic Manual
Questions
Copyright 2011 Open Scan Technologies, Inc. All Rights Reserved.© Copyright 2012 Open Scan Technologies, Inc.
Company Background
Founded in 1998 - based in Denver, ColoradoSoftware Development Company
Enterprise solutions Wholesale environment Accounts Receivable focus Accounts Payable/ECM solution
Initial Clients were/are State Child Support Organizations Installations in 26 states
Current Focus has been Corporate Clients More than 50 commercial clients
including 20+ in the Fortune 500 ”
The leader in financial workflow
automation including A/R & A/P with
proven success in the market for more
than a decade.
“
Copyright 2011 Open Scan Technologies, Inc. All Rights Reserved.© Copyright 2012 Open Scan Technologies, Inc.
Processing payments is more complex Payment types are diversifying B2B paper checks are not going away Decoupled remittances are growing Unauthorized deductions are growing
Business Challenges
Copyright 2011 Open Scan Technologies, Inc. All Rights Reserved.© Copyright 2012 Open Scan Technologies, Inc.© Copyright 2012 Open Scan Technologies, Inc.
World-Class Organizations are More Efficient in Processing Customer Remittance Transactions
Average Time to Apply Cash (Business Days From Receipt of Customer Remittance Through
Successfully Completing the Cash Application to Individual Accounts)
2.0
1.4
Source: Hackett 2010 Finance Functional BM Peer Group
The A/R Opportunity
World Class
Copyright 2011 Open Scan Technologies, Inc. All Rights Reserved.© Copyright 2012 Open Scan Technologies, Inc.© Copyright 2012 Open Scan Technologies, Inc.
Process Cost* per Customer RemittanceCustomer Remittances per FTE
Standardized Processes and Automation Increases World-Class Productivity and Lowers Unit Costs in Cash Application
*Process Cost = Labor costs + Outsourcing Costs
22,509
29,271
Peer Group World Class
$2.7
$1.4
Peer Group World Class
Source: Hackett 2010 Finance Functional BM
The A/R Opportunity
Copyright 2011 Open Scan Technologies, Inc. All Rights Reserved.© Copyright 2012 Open Scan Technologies, Inc.
The A/R Opportunity
Traditional ways to Process Receivables: Lockbox Processing In-House Processing Electronic Payments
New Technologies allow Corporations to: Maximize Posting Accuracy Decrease Resource Requirements Eliminate Data Entry Costs Optimize Exception and
Deduction Handling
Copyright 2011 Open Scan Technologies, Inc. All Rights Reserved.© Copyright 2012 Open Scan Technologies, Inc.
A/R System
$
Mail Arrives at Bank
Mail Opened and Contents
Scanned
Checks Deposited
Remit and Check Images Transmitted
to Web
Bank
Current Bank Lockbox Options
Lockbox
Direct Keying from Image
Exceptions Handling
Traditional Process
Remit and Check Data Transmitted to
Corporate
$$$
Corporate100k invoice line items
20 characters per lineX
X$0.01 per keystroke
$20,000 per month
Copyright 2011 Open Scan Technologies, Inc. All Rights Reserved.© Copyright 2012 Open Scan Technologies, Inc.
Mail Arrives at Corporate
or Field Location
Mail opened and sorted into batches
Bank
A/R System
$
Checks are copiedDeposit is prepared
Invoices are manually processed into A/R
system
Bad News: Manual cash
application Control tape &
re-association Risk/Compliance Data quality issues
Checks are physically delivered or scanned
and transmitted to bank
Current In-House or Distributed Workflow
Traditional Process
Copyright 2011 Open Scan Technologies, Inc. All Rights Reserved.© Copyright 2012 Open Scan Technologies, Inc.
DEDUCTION ID
$
Mail Arrives at Bank
Mail Opened and Contents
Scanned
Checks Deposited
Remit and Check Images Transmitted
to Corporate
Bank Lockbox
A/R System
AUTO EXTRACT
A/R MATCHING
POSTING FILE
Invoice #Amount DatePO #Customer #etc.
Automated Lockbox Workflow
Lockbox Process
ACH & CTX /CCD+
ACH Wires
CorporateElectronic Remittance: Emails Pdf Excel
Copyright 2011 Open Scan Technologies, Inc. All Rights Reserved.© Copyright 2012 Open Scan Technologies, Inc.
Mail Arrives at Corporate
Corporate
Mail Opened and Contents Scanned
Bank
Cash Application
A/R System
Electronic Deposit
$
Automated In-House Model
In-House Process
AUTO EXTRACT
A/R MATCHING
DEDUCTION ID
POSTING FILE
InvoiceAmount DatePOCustomer #etc.
ICL CREATION
Copyright 2011 Open Scan Technologies, Inc. All Rights Reserved.© Copyright 2012 Open Scan Technologies, Inc.© Copyright 2011 Open Scan Technologies, Inc.
Check and Remit Images Sent to Open
Scan Server
Remote Sites
$ $ $ $
Images of Checks/Remits Transmitted from Lockbox
$
Distributed Process
Check21 Electronic Deposit
Data extracted from all images & matched, cash applied, ICL prepared by Open Scan
Checks arrive, contents scanned & cash deposited
Hybrid (all Locations)Corporate
Bank
Copyright 2011 Open Scan Technologies, Inc. All Rights Reserved.© Copyright 2012 Open Scan Technologies, Inc.
Electronics Processing Workflow
Your Bank Sends you:
NACHA file,EDI 820,
EDI 820 CTX,or
EDI 820 CCD+
Client Bank
Corporate
Cash Application
A/R System
A/R MATCHING
DEDUCTION ID
POSTING FILE
Invoice #Amount DatePO #Customer #Etc.
Client
Depository Bank
Your Client Initiates an Electronic
Payment (ACH) from their Account
Their Bank Transfers Fundswith a NACHA
Compliant Data Feed
$
DATA IMPORTER
IMAGE CREATION
Account #Amount InvoicePOCustomer #
Copyright 2011 Open Scan Technologies, Inc. All Rights Reserved.© Copyright 2012 Open Scan Technologies, Inc.
Electronics Processing
1Examine a payment
2
Search and examine remit(s)
This is an image of the remit
Copyright 2011 Open Scan Technologies, Inc. All Rights Reserved.© Copyright 2012 Open Scan Technologies, Inc.
Electronics Processing
4
Drag and drop. The remit is moved into the payment.
3
Submit
Copyright 2011 Open Scan Technologies, Inc. All Rights Reserved.© Copyright 2012 Open Scan Technologies, Inc.
Automatic Deduction Identification
Deduction Identification
Invoice With Deduction DI Auto
Tax Exempt Code
Freight Code
Small Dollar Code
Net 10 Term Code
Automatically Assigned Code – Ready for Processing
Invoice123752
-$29
Invoice Received in Under 10 Days= 5% discount or $29
Tax Frt Sd Net 10 (5%)
123752 42 68 < 20 291237
Codes are Based on Client’s Business Rules
Rules are Cross Referenced in Priority Order Based on Clients Preference.
Expected
$580 Paid
$551
Copyright 2011 Open Scan Technologies, Inc. All Rights Reserved.© Copyright 2012 Open Scan Technologies, Inc.
Tax Exempt Code
Freight Code
Small Dollar Code
Net 20 Term Code
Invoice With Deduction
Manual Deduction Identification
DI Auto
Tax Frt Sd Net 20
234644 $82 $104 < $20 $55
Invoice234644 -$84
Invoice Enters DI Manual and a User Selects the Appropriate Code(s) Through a Simple Pull-Down Menu.
Broken crate
- $84
Deduction Identification
Copyright 2011 Open Scan Technologies, Inc. All Rights Reserved.© Copyright 2012 Open Scan Technologies, Inc.
Reduction of Data Entry Costs One-time expense True automation, not outsourcing
Integrated Payment Workflow Corporate Payments of all types Remote Deposit Capture Electronic payments
Improved Data Speed and Accuracy Proven algorithms Validation prior to posting Same day processing
Better Customer Service Customers can still remit to the same local site as always Maximizes effectiveness of collections Timely accurate posting reduces unnecessary credit holds
Major Benefits of Automation
Copyright 2011 Open Scan Technologies, Inc. All Rights Reserved.© Copyright 2012 Open Scan Technologies, Inc.
Clients
Copyright 2011 Open Scan Technologies, Inc. All Rights Reserved.© Copyright 2012 Open Scan Technologies, Inc.
If you would like to learn more or have additional questions, visit www.openscan.com, e-mail [email protected]
or call 303.867.7419
Thank You For Attending
Questions