Our Accounts Receivable solution involves e-Billing. This is the process of receiving data from a client’s accounting or ERP (Enterprise Resource Planning) system and delivering the data to their clients via e-mail.
During the process, important information such as dates, invoice numbers and account numbers are extracted in order to match the correct pages with the client e-mail address.
Clients who wish to continue receiving their invoices in hardcopy format can be identified during the processing and continue to receive hardcopy.
The SP Process
- The client processes their invoice run inside ERP (SAP, Oracle Financials) or accounts system etc.
- Service Point provide PDF print driver software to create a single PDF file for the clients billing data.
- The PDF file is then uploaded to a Service Point server or alternatively it can be supplied via e-mail.
- The single invoice file is split into single pages.
- The e-Billing application then extracts metadata (i.e. invoice number, date, value etc) from the invoices.
- The invoices are then compiled into invoice sets, either single or multi page invoices. The application can also match other items e.g. statements with the invoices.
- The e-Billing application will attempt to match the extracted data such as an account number against with the client e-mail master list.
- If no e-mail matches the document it will be printed and sent via mail to the client.
- When the e-mail matches the document will be digitally signed and encrypted and sent to the client as a PDF.
- The client receives a summary of the log file showing number of pages processed and e-mails etc.
- All of the data (printed and e-mailed items) can be uploaded to our web hosted system (ImageSilo) or the clients document management or ERP system.
- Should an e-mail not reach it’s destination it will be bounced back to the billing originator for them to resolve.
And the Benefits for the Customer Include:
- Able to take advantage of early payment discounts (if available) due to the ability to process invoices in a more timely fashion.
- No need to store paper copies of invoices.
- May provide benefits to the customer due to the fact that electronic invoices are easier and faster to process than a paper copy.
Why Our Accounts Receivable Solution?
The processing of sales invoicing as hard copies can be a costly process. Let’s look at some of the research facts;
- Invoice Delivery - Forrester Research estimates that the variable paper and delivery cost of a traditional invoice is £1.53 (Gartner Research place it at £2.74) and that of an electronic delivered invoice is £0.28. This represents a huge saving of 82% per invoice!
- Resolving Queries – Gartner Research estimates the cost of a manual invoice query is £27.40 as opposed to an electronic based process cost of £13.70, a saving of 50%.
- Reprint Requests - Researchers from Giga Information Group found 8% of all invoices are followed by a demand from customers for a repeated invoice. E-Billing removes the need for reprinted invoices as duplicate copies can be downloaded by customers on demand.
- Improved AR Efficiencies - The Hackett Group estimate that EIPP improves the efficiency of account receivable processing by 33%.
- Releasing Working Capital - Electronic Payments Association, estimate that Days Sales Outstanding can be reduced by 4 days in the year following EIPP implementation.
So the Benefits for the Biller Include:
- Much cheaper to produce and send than a paper invoice.
- More environmentally friendly - For every 38,500 bills produced, a ton of paper is used, two tons of trees are destroyed, 65,000 litres of water is used and 2,500Kg of greenhouse gases are emitted.
- Invoices are delivered faster and more efficiently and avoid postal disruptions.
- Invoice queries are resolved faster and more efficiently.
- Experience shows that invoices are paid faster therefore reducing DSO (Days Sales Outstanding), typically 4 to 7 days on average.
- With access to electronic images of the invoices rather than paper copies, useful and faster when resolving invoice queries and producing copies.
