Purchasing
Sales Operations
Product Article Master
Logistics
Finance
- Accounts Payable
- Invoice verification & posting invoices
- Making payments to vendors & queries
- Goods receipt and invoice receipt clearance
- Analyze vendor open line items
- Overhead cost invoices
- MIRO Posting
- Accounts Recievables
- Scheduling a dunning run
- Settling customer payments & queries
- Self-billing of customer’s invoice
- Bank reconciliation
- Customer Invoice Clearance
- Sales Order Booking
- Daily Credit Run
- Releasing Green Orders
Market Research
Analyze vendor open line items
Würth Business Services handles the non-core financial operations to support the Finance Teams of companies within the Würth Group. Our Team ensures that companies maintain error-free and detailed accounting records, settle payments on a timely basis, carry out effective vendor management, and speed up the accounting processes. We handle different processes under the Accounts Payable and Accounts Receivable portfolio.
Among different processes we handle under the Accounts Payable portfolio, Analyze Vendor Open Line Items is one of them. In this process, our team compares the balance sheet figures with vendor overdue items. This service is aimed at tracking the overdue vendor invoices that need to be paid. Furthermore, we share the master file containing the report of overdue invoices with the customer.
Work Flow
WORK FLOW OF THE PROCESS
01. Extract
Extract balance sheet and vendor overdue open items
02. Compare
Compare the figures to identify overdue vendor invoices that need to be paid
03. Share
Share the master file with customer
Benefits
Value-added
BENEFITS OF OUR CUSTOMERS
☞ Identify the status of overdue vendor invoices
☞ Manage the finances to complete the due payments
☞ Ensure timely payments to the vendor
Transition
TIME TAKEN FOR TRANSITION
Step 1
Analysis of requirements – 1 Week
Step 2
Documentation – 1-2 Weeks
Step 3
Create framework – 1 Week
Step 4
Step-by-step implementation – 2 Weeks
Step 5
Transfer – 1 Week
Case study:
Analyzing Vendor Open Line Items for Improved Financial Management
Introduction:
In the realm of finance and accounting, efficient management of vendor invoices is essential for maintaining strong vendor relationships and managing cash flow effectively. Our customer, Würth Industri Danmark A/S, recognized the need for analyzing the Vendor Open Line Items to compares balance sheet figures with vendor overdue items. The aim is to identify and track overdue vendor invoices for timely payments and transparency in financial records. The process culminates in sharing a master file containing a report of overdue invoices with the customer.
Problem:
Our customer faced challenges in efficiently tracking and managing vendor invoices manually. The customer needed to invest time in analyzing vendor invoices and there were possibilities of potential errors in invoice tracking, delays in identifying overdue invoices, and difficulties in maintaining transparent financial records. These inefficiencies hindered the company's ability to make timely payments, manage vendor relationships, and ensure accurate accounting. This impacted cash flow and vendor satisfaction.
Solution:
Recognizing the need to enhance the Analyze Vendor Open Line Items process, we adopted a systematic approach to improve accuracy and efficiency. Our key solutions included:
1. Meticulous Invoice Tracking: We initiated a manual process to meticulously compare balance sheet figures with vendor overdue items and identified discrepancies.
2. Manual Report Generation: We generated detailed reports of overdue invoices, providing transparency in financial records.
3. Customer Communication: Upon successful tracking and reporting, we communicated promptly with customers, sharing the master file containing the report of overdue invoices.
After successful validation, we forwarded the claim to the carrier for acceptance and processing. This manual step ensured that the necessary information was transmitted for recovery. In the last step, we submitted all the necessary documents to the Würth Group Insurance.
Results:
The changes implemented in the Analyze Vendor Open Line Items process led to significant improvements in accuracy, transparency, and vendor relationships for Würth Industri Danmark A/S. The key results included:
1. Invoice Accuracy Improvement: By implementing meticulous tracking, we achieved a reduction in invoice tracking errors. This enhanced financial accuracy and reduced the risk of disputes with vendors.
2. Timely Payment Processing: Despite manual processes, we improved payment processing time. This allowed for more timely payments to vendors and improved cash flow management.
3. Enhanced Vendor Relations: Effective communication and timely reporting resulted in an increase in vendor satisfaction and strengthened vendor relationships.
4. Time Saving: Our approach led to significant time savings per month. This saved time can be utilized for executing different core operations.
Conclusion:
By transferring the Analyze Vendor Open Line Items process, our customer was able to meticulously track vendor invoices for timely payments, ensure transparent financial records, and maintain excellent vendor relationships. By implementing detailed invoice tracking, manual report generation, and prompt customer communication, we successfully improved accuracy and efficiency. The results highlight the value of a well-executed process in maintaining effective financial practices and delivering operational excellence.