CASH ALLOCATION

Significantly reduce the volume and value of unallocated cash

For most organizations cash allocation (or cash application) remains a 'black art', a largely manual function that is considered too complex and full of exceptions to be a suitable candidate for automation. So the process of matching customer payments to invoices continues to consume vast resources. At month end it can reach crisis point, with extra staff needed to bring the value of unallocated cash down to an acceptable level.

However, an innovative solution from Macro 4 makes it possible to automate even the most complex cash allocation processes, often within just a few weeks.

Key capabilities of Macro 4's cash allocation solution:
  •  Auto-interpretation of data from payment files and scanned cheques and remittance advices
  •  Automated allocation of over 90 per cent of customer payments by the start of the day, using matching rules
  •  Rapid handling of any exceptions using a smart one-click system that lists suggested matches, together with supporting information such as scanned remittance advices
  •  Continuous learning: selected matches are applied next time round, so the number of exceptions declines rapidly
  •  Automated upload of payments into your financial systems, for a 'clean' ledger
Working with Macro 4 you can:
  •  Improve financial control and reduce your bad debt provision by significantly reducing the value of unallocated customer payments
  •  Reduce debtor days and increase efficiency by enabling credit management personnel to focus on genuine unpaid invoices
  •  Increase customer satisfaction as customers are no longer chased for payments they have already made
  •  Reduce the number of staff involved in cash allocation by as much as 70 per cent

 

Sample customer statisticsBeforeAfter
Annual value of payments processed £300,000,000 £1,600,000,000
Peak value of unallocated cash £9,000,000 £5,000
Staff devoted to cash allocation task 14 4
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Automating the Order to Cash Process

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Matching payments to invoices shouldn't be a chore. Let's discuss how you can automate your cash allocation process.

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