Can Global Manufacturers Achieve Automated Cash Application?

Multinational organisations often must balance multiple bank accounts in different countries and manage demanding banking needs that result in high fees, added overhead costs and increased difficulty handling invoices. The choice to implement automated cash application software, however, can not only alleviate these issues but improve financial control and even customer service.

Global manufacturer Formica overcomes slow cash application processing
The Formica Group, owner of the Formica® brand, is a leading global provider of surfacing solutions and the world’s largest manufacturer of high-pressure laminates. Formica was juggling 56 different bank accounts across Europe and managing multiple payroll interfaces across various banks.

In addition to processing French draft receipts and Spanish RIBAs and promissory notes, they incurred substantial overhead costs for printing and posting vendor remittances and high bank fees for unnecessary cross-border payments. Additionally, Formica experienced slow cash application processing, had to manage disparate bank reconciliation processes and had poor visibility of their cash position across Europe.

To help automate payments regardless of ERP or bank and to improve bank matching and reconciliation, Formica chose to implement the Global Payments Automation and Bank Reconciliation Automation modules of the Cashbook solution.

In 2011 they added the Cash Application technology in the Nordic region. Due to their success in achieving automatic cash application with full bank and ERP integration, more advanced intelligence and greater financial control, Formica began working toward a global roll out of the complete Cashbook solution.

Bank & ERP Integration

Using cash application software, Formica achieved automated payment processing, regardless of country, ERP or bank. By having all bank and ERP information integrated in the software, Formica could follow one standard payment process and consolidate payment files across Europe, encompassing many accounts, currencies and business units.

Advanced Intelligence

By automating their cash application process, Formica massively reduced manual entry and the accompanying error rates. They even achieved a rate of cash application automation of greater than 90% in several countries and bank reconciliation automation of greater than 95% across Europe.

Tighter Financial Control

A clearer view of their cash application process enabled Formica to develop a clearer audit trail and faster resolution of outstanding items, which gave their finance team more time to focus on exceptions. With automated cash application software, they have a complete audit trail and SEPA compliance, including XML/XSL reports.

Additionally, treasury management have greater control over cash and better visibility of Formica’s cash situation. Plus, bank accounts are now reconciled on a weekly basis, ensuring closer cash control and reduced pressure at the end of the month.

Offering Financial Flexibility for Global Manufacturers
The right cash application software can not only streamline cash application, bank reconciliation and payment processes, but also add up to significant time and labour savings, and even improve the customer experience. Global manufacturers looking for greater efficiency and visibility of their cash situation can benefit from a comprehensive range of modules typically offered by cash application software options.

Bank Statement Automation

By enabling automated bank statement processing regardless of bank, currency or ERP system, automated cash management software lets global companies employ a single solution across multiple sites and banks. Plus, an organisation can operate shared service centres without the need for a common ERP platform or version updates.

Lockbox Automation

Automating the lockbox process can reduce the time spent processing lockbox files by up to 95%. This is possible through advanced matching algorithms that include combinations of invoice amount, invoice number, purchase order reference and much more, all set up according to the users’ preferences and requirements.

Customer Remittances

By providing seamless integration across sources, programmes and file formats, as well as advanced intelligence and customisable actions, cash application software can help global manufacturers streamline customer remittances and improve cash application times, while offering greater financial visibility, traceability and control.

Direct Debit Automation

Supported by seamless bank and ERP integration, cash application software can cater for a broad range of direct debit processing requirements, including varied collection dates, instalment collection, pre-authorisation functions and more, giving global manufacturing organisations tighter control over all direct debit processing and payments.

Factoring Automation

Advanced cash application software allows for integration with nearly any factoring provider in the world and includes the features and intelligence needed to streamline factoring, whether manufacturers need to view, export or store invoices by date, PO number, payment, discount terms, allocations or any other information.

Draft Automation & Management

In addition to securely storing extensive account information, including IBAN and SWIFT codes or email addresses, global manufacturers can use cash application software to record draft amendments, adjustments and approvals, as well as format drafts and transmit data files to any bank—all enabling greater cash management.

OCR Lockbox

Using highly intelligent and seamless integration with all major banking providers, cash application software offers global manufacturers the functionality and OCR automation to reduce manual labour, lower costs and speed processing—all while dramatically reducing the margin for error and increasing financial control.

Deductions Software

The latest cash application software offers global manufacturers a clearer view into deductions by using advanced system intelligence, seamless bank and ERP integration, and deductions management functionality that enables an unprecedented level of automation in deductions management.

Automated cash application translates into significant savings and greater control over cashflow and financial health for global manufacturers. For more information about the modules, functionality and capability of Cashbook’s cash application software, get in touch with our team on +1 818 292 9015 (North America) or +353 61 338 400 (international).