Learn about how the usage of electronic payments continued growth is causing it to become more difficult to receive remittance. A change that has benefited accounts payable has in turn caused cash application challenges for accounts receivable, who are now dealing with more and more electronic payments and remittances. Created by Centreviews.

1. Remittance Challenges
Digital World
in a
Gary Halleen, CEO, President, API Outsourcing Inc.

2. 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.

3. 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

4. The Remittance Problem

5. The Problem
Electronic Payments Are Wonderful
Provides cash faster

6. The Problem
Electronic Payments Are Wonderful
Payments from multiple financial institutions
Single payment for many invoices with no remittance
Difficult to match payments, invoices & remittance information
ACH, wire, card, remittance & deductions through different sources

7. Why This Is Happening

8. 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

9. 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.

10. Why This Is Happening
Electronic Payments
Are 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 Likely
Very Likely
Majority Already Electronic
Not At All Likely

11. Why This Is Happening
Advantages for Buyer/Payer
Electronic Payments & Remittance
Pay just in time, extend DPO
Reduce labor, check & postage costs
Minimize opportunity for fraud

12. Why This Is Happening
Disadvantages for Seller/Receiver
Electronic Payments & Remittance
Multiple sources for remittance information
More costly to match remittance & payments
Longer to complete cash application, increases DSO

13. Why This Is Happening
Receiving Remittance
Method of Sending ACH Remittance Information
% 10% 20% 30% 40% 50% 60% 70% 80%
Email
EDI/CTX
Regular Mail
Fax
3rd Party Website
Sellers Website
Buyers Website
Other
Source: Federal Reserve System. 2013 Federal Reserve Payments Study. July 2014. Print.

14. Remittance Challenges
Remittance Matching Issues
Cash application is time sensitive
Peaks & valleys with receiving payments
Staffing difficulties
Burnout & overworking

15. How Do You Deal
With This Change

16. 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

17. How Do You Deal With This Change
Understanding Your Standing
Requirements & Definition
Do you understand your current processes?
Do you have challenges in your current processes?
Do you have the expertise to solve these challenges?

18. 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?

19. 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

20. Summary
Wire
ACH
Card
EDI/CTX
Email Buyers Website
ERP System
Invoice
Data Merged
Remittance
Payment
Word PDFExcel

21. Adding automation opens the rest of your freeway
Summary

22. Everything is going electronic

23. Are you ready?

24. +
Thank You
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