Speaker: Patti Davis, Accounts Receivable and Invoicing Supervisor, Carhartt, Inc.
Speaker: James Sarkkinen, Credit Manager, Interstate Companies, Inc.
Patti Davis: We receive approximately 8,000 checks per month, and we’re looking to move our top strategic accounts over to ACH payments to gain efficiency and cost savings.
Narrator: You know the benefits of electronic receivables over checks – they’re more efficient, and they cost less. But you also know the drawbacks of moving your customers’ payments from check to ACH and wire.
James Sarkkinen: Interstate Companies was not encouraging ACH payments. It was too time consuming to match up the remittance advice with the payment that was sent to the bank.
Narrator: 66% of ACH and 86% of wire payments received are processed manually. That’s because, most of the time, electronic payments and the accompanying remittance information are sent separately.
Narrator: Matching the payments to the right invoice numbers, invoice amounts, or purchase order numbers, so they can be posted to your receivables system, is a time-consuming, costly, manual process.
Narrator: Now the Receivables Manager service from Wells Fargo lets you post up to 70 or 80 percent of electronic payments automatically with straight through processing.
James Sarkkinen: Prior to Receivables Manager, our hit rate was approximately 10 percent. After the first month of implementation of Receivables Manager, we were running just at 40 percent.
James Sarkkinen: Currently, we’re running about 65, maybe inching toward 70 percent, and realistically our goal’s right around 85 to 90 percent.
Narrator: The Receivables Manager service speeds and improves your AR process three ways – with automated matching, online matching, and repair.
Narrator: Your receivables payments come into Wells Fargo. The remittance information is automatically forwarded to Wells Fargo, too.
Narrator: The data enters a “matching engine” that’s built by Wells Fargo.
Narrator: This exclusive technology matches payments to remittance advice automatically. When the engine can’t make a perfect match, we present “possible” matches to you online, so your staff can pick the right one.
Narrator: ACH payments in the CTX standard can auto-post to your AR system IF the accompanying data is correct and complete. When it’s not, we repair the data, so the payments can post automatically. As the percent of payments that auto post goes up, the time your staff has to spend on cash application goes down.
Patti Davis: We’ve seen a huge time savings using Receivables Manager. I have two cash appliers working on cash today and it is saving them approximately one to two hours that we can take and reallocate to another area.
Narrator: You receive a single file for your payment types.
Narrator: Upload it to your receivables system, and the matched payments post automatically.
James Sarkkinen: Prior to automation, our cash application would take one to four days. After automating the cash application process, we’re generally posting cash by 10 am every morning, and that has a significant impact on the customer relationship.
Patti Davis: We were at three to five days to post. After implementing Receivables Manager, we are now at 1.65 days to post electronic payments.
James Sarkkinen: We are definitely encouraging ACH payments at this time. Through using Receivables Manager it has made it very easy to automate that payment application process.