Achieving Straight - through Cash Posting with Artificial Intelligence
Wesco, a Fortune 500 company, is known for its global electrical, communications, and utility distribution and supply chain solutions. It has operations in 17 countries worldwide and is associated with many Fortune 1,000 companies that required a global strategic partner to efficiently and consistently support their operations based on their locations.
WESCO’s cash application scenario was complex as they had to manually deal with multiple payment formats like electronic funds, credit cards, checks, and numerous remittance sources. They were in a predicament and were looking for a more efficient way to deal with the challenges mentioned below:
Remittances came in from multiple sources in varied formats, meaning standard tools weren’t enough for applying cash. Their analysts spent most of their time extracting remittances from emails, EDIs, and 20+ A/P portals, which hampered their efficiency. They also
encountered missing remittance scenarios that required multiple interactions with the customer.
Lack of Bank Support:
Banks did not provide processing support for the reconciliation of e-payments, leaving the team to perform manual work. With low-quality check images and remittances flowing through disparate sources for e-payments, their analysts manually linked every payment and remittance and coding deductions.
Payments and remittances often came in separately, thus making invoice matching difficult. The manual reconciliation of these made the process laborious and time-consuming.
Goals & Objectives:
WESCO was looking for a solution that would act as a single source of truth and was easy to deploy, and easy to train staff on. They believed that a cloud solution would make their cash application more sustainable and scalable. WESCO thus turned to a cloud solution with the following expectations:
1. Accessibility of remittances throughout the A/R department
2. Matching of remittances based on multiple fields like P.O. number, receipt, or receiving date
3. Better visibility across multiple
4. Faster and accurate cash application at lower
How did HighRadius Help:
WESCO leveraged the Cash Application Cloud from HighRadius to address all their challenges and have a straight-through cash posting in place. The artificial intelligence-based solution brought in the following functionalities:
Cash Application Cloud:
Automatic Processing of Multiple Remittance Formats:
The email remittance, OCR, and web portal remittance-capture feature of the solution handles auto-aggregating the remittance data from all the sources. The email remittance capture ensured digital processing for a high-quality image with no email management requirement to process remittances coming in via email. Furthermore, while the OCR capture processed paper check remittances, the web portal remittance captured remittances from the customer’s website with no need for the team’s intervention.
Automatic Capture of E-Payment Information:
The Cash Application Cloud corroborated seamless capture of payment information across all standard bank file formats (BAI, BAI2, EDI820, EDI823, MT940) and in multiple languages. The solution also captured all critical information such as payer name, bank fees, and currency to ensure faster payment remittance linking.
AI-Based Remittance Prediction:
AI-Based remittance prediction suggests missing remittances to payments coming in and allows the analyst to choose from multiple suggestions provided by the solution. It allows the remittances to be matched based on various fields like P.O. number, receipt, or receiving data. Furthermore, the AI-based customer master recommendations allow regular maintenance of the customer master data such as payer name and MICR mapping saving.
Automated Deduction Coding and Seamless Integration:
The Cash Application Cloud seamlessly integrates with other A/R processes to capture promises to pays as remittances and claim data for deduction coding. It allows identifying, matching, and automatic coding of deductions. It also assures the collections and credit teams are on the same page when a payment comes in and cash is applied to avoid undesirable dunning.
Configured to Meet Specific Business Requirements:
The HighRadius solution was efficient enough to cater to WESCO's customized business requirements where it helped them close invoices at a parent account level and post disputes at the customer level.
HighRadius is a Fintech enterprise Software-as-a-Service (SaaS) company that leverages Artificial Intelligence-based Autonomous Systems to help companies automate Accounts Receivable and Treasury processes. Our products provide value to a wide range of customers and are especially relevant to industries like consumer products, manufacturing, distribution, energy, and others that sell products or provide a service to other businesses. Our customers range from some of the largest global corporations, including more than 200 Fortune 1000 companies. We also serve mid-size enterprises that don’t have the IT resources to consolidate on an ERP platform but still want to automate and streamline their receivables and treasury processes.