A streamlined, automated solution for a demanding lockbox process
Exide Technologies is a global leader in stored electrical energy solutions with operations in over 80 countries. In Feb 2009, Exide came to Cashbook looking for an automated cash management solution for their increasingly demanding Lockbox process.
Exide receives one daily lockbox file containing data from two bank accounts and also numerous batches within the file.
Challenge
How to easily and quickly automate and streamline the lockbox process
- Bank lockbox files were manually downloaded from the banking software into excel.
- Individual customer remittances were manually allocated in the ERP System.
- Manual creation of deductions for unearned discount were taken by customers.
- Customer remittances were received in various formats.
- Electronic payments did not contain remittance information
- Huge time spent gathering electronic payments remittance information
Solution
Cashbook. A proven, intelligent, reliable solution to lockbox processing automation
Exide Technologies Ltd. Adopted the Cashbook AR Bank Lockbox solution which integrated with their existing ERP, JDE. Using a scheduled overnight job, Cashbook takes the bank lockbox file and, through the file upload process, automatically runs the various matching rules which have been customized for Exide such that users only have to work with the exceptions at the start of each day.
Using a combination of algorithms, i.e. matching against invoice no. and/or sales order no., has proven highly successful for Exide who are achieving a high hit rate against open AR data. A large bank lockbox is subdivided into Cashbook journal records corresponding to actual bank batches facilitating Exide’s work assignments and enabling the one lockbox file to be worked on by a number of users.
Full Bank & ERP Integration
Seamless integration with existing ERP system
- Automatic integration with the JDE environment and its processes.
More Advanced Intelligence
Let technology do the work; massively reduce manual entry
- Lockbox automatic uploads.
- Matching algorithms based on a combination of invoice number and sales order number.
- Creation of separate batches based on the batch number assigned by the bank.
- Upload Excel remittances into Cashbook and have specific customer algorithms set-up.
- North American lockbox, up to 95% invoice automation.
- European MT940 automation, up to 95% invoice automation.
- European miscellaneous journal automation up to 85%.
- Reconciliation automation is over 99%.
- >50% time saving in the cash application process.
Greater Financial Control
A clearer window into lockbox and cash management for Exide Technologies
- User retains full control and can review all details before posting the cash to AR and GL.
- Control reports available to facilitate work assignments with metrics.
results
Reduced cash application time by >50%
Lockbox; 95% invoice automation
European MT940; 95% invoice automation
With the assistance of Cashbook we have been able to reduce the amount of time it takes to apply cash by 50%. The addition of Cashbook has been very beneficial to the continued success of our department.
