Invoice and Payment Management
The Client:
A mid-sized trading company that registers over 1500 invoices and payment transactions on a monthly basis.
The Problem:
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The client had two disintegrated data sources - the invoice data and the payment receipts. When customers made lumpsum payments, the client had to manually set-off payments received against invoices using the FIFO method.
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This process was tedious, time-consuming, and error-prone. There was no as-on-date report that indicated how many invoices were due and how many were settled.
Our Solution:
We set up a clear reporting system that streamlined invoices and payments reconciliation by integrating data sources, automated payment allocation against due invoices, and providing as-on-date company and customer wise reports.
Our dashboard had 2 screens -
1. Billing and Receivables Overview - It provided an overview of billings, payments received and balance due at company and customer level.
Some of the key metrics were-
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Total Billings, Total Receipts and Amount Pending till date
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Balance pending from top 7 Customers
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Further drill down that provided detailed monthly reports on cumulative billings and outstanding balances of the selected customer.
2. Invoices Paid and Unpaid : This view provided in-depth analysis of invoices, lump-sum payments received and how many invoices were set-off against those payments.
Some of the key metrics displayed here are:
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Total Billings, Amount Received and invoices set-off using FIFO method.
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Payments against specific invoices
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Invoices ageing analysis
Our Impact:
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The time taken to reconcile the invoices and payments received went down from a month to being available on demand.
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Our solution led to a significant positive impact on cash flow by reducing working capital requirement by $600k per annum.
Timeline:
Project Discussion
Project
Scope
Automation
&Testing
KPI
Calculation
Visualization
Handover &
Manual Training
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Day 2
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Day 1
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Day 7
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Day 10
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Day 11
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Day 13