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
Customer Invoice Clearance
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 Receivable portfolio.
Among many processes under this portfolio, Customer Invoice Clearance is one of them. In this process, we download your company’s bank account statement. Based on the payment details in the statement, we will go through your company’s account in the Enterprise Resource Planning (ERP) system. Then we compare the payment received in the bank with the payment amount in invoices in the ERP system. If the payment amount in invoice matches with the payment received, it implies that the customer has already paid the overdue amount. We clear off those invoices in the ERP system. This way, we save a lot of your time in finding the customers who paid their overdue amount and those who have not paid yet.
Work Flow
WORK FLOW OF THE PROCESS
01. Determine
Determine the customer account for received payments
02. Compare
Compare invoices with received payments
03. Settle
Settle payments in the ERP system
Benefits
Value-added
BENEFITS OF OUR CUSTOMERS
☞ Accurate and thorough verification process
☞ Collect overdue payments on a timely basis
☞ Save time with our systematic approach
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:
Streamlining the Customer Invoice Clearance Process for Saving Time
Introduction:
Collecting timely is vital for maintaining healthy cash flow and ensuring effective finance management. Würth Adams Nut & Bolt Company recognized the save time in knowing which customers paid their due payments. This is why it transferred the task of clearing off customer invoices who paid their dues to Würth Business Services. We adopted a systematic approach to execute Customer Invoice Clearance process to reduce their efforts, send them a list to take follow ups for those who have not paid the due amount, enable smooth financial management, and improve overall efficiency. This case study showcases how we successfully transformed the Invoice Clearance process, resulting in time savings and enhanced productivity.
Problem:
Before transferring the Customer Invoice Clearance process, Würth Adams Nut & Bolt Company faced significant challenges such as sorting out which customers paid their dues and which customers needed to be followed up for due payment. This laborious and time-consuming process often led to delays, errors, and difficulties in tracking customer payments accurately. As a result, the team spent excessive time and effort in identifying customers who had paid their overdue amounts, resulting in inefficiencies and potential revenue loss.
Solution:
To address these challenges, we implemented a comprehensive solution to execute Customer Invoice Clearance process. The key components of our solution included:
1. Bank Statement Analysis: We download the bank account statement directly through the internet banking. This statement gives a comprehensive view of the payment details.
2. Payment Matching and Clearance: We established the Enterprise Resource Planning (ERP) system for smooth collaboration with representatives of Würth Adams Nut & Bolt Company. The pending invoices were shared through that system and we accessed them regularly. Our Finance Support Team determined the customer accounts based on the payment received in the bank account. Then we compared the payment details from the bank statement with the corresponding invoices in the system. By comparing the payment amounts, we could accurately identify customers who had already paid their due amounts.
3. Invoice Clearance: Once a match was found between the payment received and the invoice amount, we cleared off the relevant invoices. Once the invoices have been cleared off, the remaining invoices in the ERP system indicated the customers who needed to be followed up. This process saved a significant amount of time and effort, allowing the representatives Würth Adams Nut & Bolt Company to focus on following up only those customers who are yet to pay the dues.
Results:
The implementation of streamlined Customer Invoice Clearance process resulted in several notable outcomes for Würth Adams Nut & Bolt Company. Key results included:
1. Time Savings and Efficiency: By executing the invoice clearance process, we handled a considerable amount of cases and achieved a significant time saving. From January to May of 2023, we cleared off the approximately 21,000 invoices in the ERP system. Furthermore, we saved nearly 1,380 hours for the company. This led to improved productivity and faster invoice processing.
2. Improved Accuracy: Our dedicated team carried out the payment verification of invoices with bank statement diligently, leading to accurate identification of customers who had paid their due amounts and minimized the chances of missed payments and revenue loss.
3. Enhanced Cash Flow Management: With a streamlined process in place, we gained better visibility into the customer payments and due amounts. This facilitated proactive follow-up on unpaid invoices and improved cash flow management, ensuring timely receipt of payments.
Conclusion:
By implementing the Customer Invoice Clearance process, Würth Adams Nut & Bolt Company successfully optimized efficiency, accuracy, and cash flow management. The comparison of bank account statements with the invoices in the ERP system is a diligent work, which our team carried out and cleared off invoices. This resulted in time savings, improved accuracy, and enhanced cash flow. Our company remains committed to process optimization to drive operational excellence and provide exceptional customer service.