in Accounts Payable Karl Andersson, Founder Phone: 508-480-8990 Fax: - - PowerPoint PPT Presentation

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in Accounts Payable Karl Andersson, Founder Phone: 508-480-8990 Fax: - - PowerPoint PPT Presentation

May 31, 2023 475 likes •746 views

Cash Maximization in Accounts Payable Karl Andersson, Founder Phone: 508-480-8990 Fax: 781-634-0500 www.technology-insight.com Webcast Logistics Collapse or expand the main menu Full screen or reduced screen Raise hand Send us your

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Cash Maximization in Accounts Payable

Karl Andersson, Founder

Phone: 508-480-8990 Fax: 781-634-0500 www.technology-insight.com

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Collapse or expand the main menu Send us your questions Full screen or reduced screen Raise hand

Webcast Logistics

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The next 45 minutes:

a) About Technology Insight b) 5 Ways to Maximize Cash c) Question & Answer

Agenda

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Technology Insight Corporation (TIC) provides Accounts Payable, Internal Audit and Purchasing with robust, detailed P-to-P data analysis tools that enable them to perform comprehensive

  • perational analysis and duplicate

payment identification through to recovery. Enabling change for the greatest impact to the bottom line and

  • perational efficiencies.

About Technology Insight

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1) Get Control of Payment Terms 2) Identify & Prevent Duplicate Payments 3) Actively Manage Your Vendor Master File 4) Leverage Your P-card 5) Manage PO Use

5 Ways to Maximize Cash

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QUESTION 1

What are your company’s standard payment terms?

QUESTION 2

How many different payment terms does your company support?

Payment Terms

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Actual vs standard payment terms

  • Number of payment terms being used
  • Spend associated to each term

Effect of overrides/incorrect terms on cash

  • Payment term is overridden at invoice entry
  • Incorrect terms on the PO

Missed early discount opportunities

  • 2%/10

The DataShark A/P Solution

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Remit Vendor Master File Net 30 Net 45

Payment Term Flow

Purchase Order Net 30 Invoice Net 30

Terms Differ Terms Differ Terms Differ Open PO’s Terms Differ

Purchasing Vendor Master File Net 30

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Exponential impact to bottom line

  • $100,000 @ 2.5%PM = $4,000,000 sale
  • $100,000 @ 5% PM = $2,000,000 sale

ERP System Controls

  • Strict matching criteria
  • Misses data entry errors, incorrect vendor

assignment, duplicate vendors, and more

Profit Recovery firm

  • Reactive

– Unnecessary cash out the door – Will the supplier still be in business?

  • Costly contingency fees

Duplicate Payments

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DataShark Architecture

SAP PeopleSoft Oracle Legacy JD Edwards Lawson P-Card Any System T&E

Technology Insight DataShark ERP Independent Database

DataShark A/P

  • For A/P & Internal Audit
  • Over 200 operational reports & metrics
  • Updated daily, weekly,

monthly, quarterly or annual

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Prevent

  • Minimizes impact on cash
  • Removes risk of ‘uncollectible’

Maximize recoveries

  • Companies cannot afford to leave cash uncollected
  • Over 300 algorithms analyzing data to line item
  • Includes invoice-to-pcard or invoice-to-T&E

Minimize resource needs

  • 75% reduction in resource vs audit software
  • Over 50% true duplicate payment hit rate

The DataShark A/P Solution

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Analysis Results

Profit recovery & Audit software (8-15 algorithms) ERP controls

duplicate payment

Technology Insight DataShark A/P (unlimited)

Pcard / T&E

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Heart of all system controls

  • Duplicate payments
  • Payment terms
  • Fraud

Vendor Master File

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Clean-up

  • Inactivate Active but Unused vendors
  • Inactivate Active but Aged vendors (e.g. 24 months)
  • Inactivate Duplicate Vendor Master Files (VMF)

Manage

  • Monitor addition of duplicate vendors
  • Monitor changes to the VMF

The DataShark A/P Solution

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Naturally extends payment terms

  • E.g. 30 days turns to 45 days

Automated more efficient

  • Requires less resource
  • Reduce or repurpose staff

Increase savings through incentives

  • Get % back from the card provider

Consider increasing p-card spend limits

Procurement Card

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Target low dollar, high volume manual invoice vendors

  • Based on your pcard limit

Monitor vendors for both pcard and invoice activity Monitor pcard-to-invoice duplicate payments Monitor MCC activity for non-standard use Aggregate pcard and invoice spend for comprehensive spend analysis

  • Ensure supplier is properly reimbursing incentives
  • Stronger negotiating position

The DataShark A/P Solution

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Manage cash more effectively Greater control on spend Adherence to PO Process

  • PO’s for purchases $x and above

Consistent business processes with vendors

Purchase Order Use

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Target non-adherence to business process

  • All spend over X dollars without a PO

Monitor PO use by vendor

  • Total actual spend compared to PO spend

PO terms not in keeping with Vendor Master

The DataShark A/P Solution

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Karl Andersson

CEO and Founder direct: 508.281.4697 mobile: 617.233.3525 email: kandersson@technology-insight.com www.technology-insight.com

Contact Us