Automating Your Cash Receipts Process

Presented by: Betty Long, West Lake Consulting, Inc. Steve Fernandes, West Lake Consulting, Inc.

Why Automate Cash Processes?

Efficient Resource Utilization

Eliminate Manual Entry Error Reduction Resource Optimization

Why Automate Cash Processes?

Savings!!
Staffing
Expedited Deduction Resolution

Auto Cash Flag

Customer Configuratio n
Unique Execution List MICR Configuration

Auto Cash Configuration

Standard E1 Algorithms
Know Invoice Match with Amount Known Invoice Match without Amount Balance Forward Match Invoice Selection Match Combination Invoice Match

Algorithm Processing Options

Discount Recognition Disposition of Under/Overpayments Write-Off/Chargeback Coding Managing of Duplicate Receipt Numbers Match Priority

Auto Cash Configuration

Defining Execution Lists
Algorithm Sequencing Versions Revising Execution Lists

Electronic Receipts
EDI User File Mapping
Control File F47111 Deposit F47112 Payment F47113 Invoice F47114

Electronic Receipts Mapping Inbound 820

EDI 820 Raw Data

Electronic Receipts Mapping Inbound 820

EDI 820 Raw Data with adjustments

Electronic Receipts Mapping Inbound 823

Lockbox 823 Raw Data

Electronic Receipts Mapping Inbound 820/823

Document Mapping
EDI Payment Header F47111
EDI Document Number, EDI Doc Key Company, EDI Doc Type (EDOC, EKCO, EDCT) EDI Line Number (EDLN) EDI Transaction Set Number (EDST - 820 or 823) EDI Send/Receive Indicator (EDER - R) Alpha Name (ALPH Customer Name 820, Bank Name 823)

EDI Payment Header F47112

Deposit Number (DEPN) Total Transaction Amount (TTOT)

Electronic Receipts Mapping Inbound 820/823

Document Mapping
EDI Payment Detail F47113
Line Number (LNID) Check Number (DOCM) Bank Transit Number (TNST) Customer Bank Account Number (CBNK) Check Amount (TTOT)

EDI Invoice Detail F47114

Gross Amount (AG) Discount Taken (ADSA) Invoice Number (PO)

Processing Electronic Receipts

R47111: EDI Update Electronic Receipts
Data Selection
Processed flag = Blank (EDSP)

Processing Options
Bank Account ID G/L Date (blanks=System Date) Process Mode (blanks=Proof, 1=Final)

Audit Report

Processing Electronic Receipts

P47110: EDI Lockbox Status Inquiry

Creating Automatic Receipts

The Role of R03B551-Receipt Header Creation
Retrieves Payment ID from Next Numbers Locates Payor Number Locates Execution List Customer record/Processing Option Retrieves G/L Bank Account Retrieves company from the Account Master table Retrieves G/L Date from the processing options Formats and validates the receipt date Generates an exception report for unprocessed receipts Creates a batch header record in the F0011 Creates Receipt Header records in F03B13 Creates corresponding Receipt Detail records in F03B14

Creating Automatic Receipts

The Role of R03B50-Apply Receipts to Invoices
Updates Receipt Header with: Execution List (from Customer Master or Processing Option) First Algorithm found in Execution List Retrieves Invoice Information from F03B13Z1 if using Known Invoice Match Algorithms Creates an error report when errors exist Updates the Receipt Status field (ASTA) on the receipt record with one of these values: 1: Receipt created by Update Receipts Header (R03B551) 2: The receipt was not successfully applied 3: The receipt was successfully applied to invoices

Review, Revise & Add Receipts

P03B121 Review/Revise F03B13Z1 Records:

Review, Revise & Add Receipts

P03B102: Header Detail Review :

Review, Revise & Add Receipts

P03B103: Full Detail Review :

Considerations/Lessons Learned
Batch Configurations Batch In Use

Considerations/Lessons Learned
Working Posted vs. Unposted Cash Receipts

Considerations/Lessons Learned
Recovery Plan
Job Profile - R47111-TYZARNEDI1
Recovery & Rerun Instructions: Determine if any records were added to F03B13Z1. If no records were added, the file should have no entries. Simply re-run R47111 at this point; if the module has been corrupted it may be necessary to execute the ad hoc version of the report.
If there are records in F03B13Z1, a fix program will need to be executed. This UBE, R5503B530/MED00001 will perform the following tasks: 1. 2. Reset EDSP to blank on F47111, F47112, F47113 and F47114. Run the UBE with the DICJ processing option to use the current invoice date and the EDCT

Considerations/Lessons Learned
EDI 820/823 Mappings G/L Date mapping use Z4DICJ if not using processing option Invoice Number mapping use Z4PO not Z4DOC/Z4DCT/Z4SFX Consolidate multiple invoice into one F47114 record for adjustment processing

Value Added Integrities/Updates

Standalone Chargeback Breakdown Standard Functionality

Value Added Integrities/Updates

Standalone Chargeback Breakdown Custom Break-out

Value Added Integrities/Updates

End of Month G/L Date Adjustment

Value Added Integrities/Updates

Unprocessed Checks no F47113

Value Added Integrities/Updates

Incomplete keying of F47114

Value Added Integrities/Updates

Auto Cash Flag set to N

Questions?