The Client
The client is one of the largest fast-moving consumer goods companies with a heritage of over 80 years. Its product portfolio includes food and beverages, cleaning agents, and beauty & personal care products.
The Challenges
The existing process relied heavily on BOT-based automation, resulting in high operational costs and limited process efficiency. Key challenges included:
- High BOT run costs for cash application, tolerance posting, and write-offs
- Frequent BOT-related issues affecting business continuity
- Dependence on multiple third-party applications
- Manual collection follow-ups and customer reminders
- Tolerance postings without standardized reason codes
- BOT-driven write-offs are increasing operational expenses
- Complex and time-consuming bank reconciliation due to multiple reports
The Objective
The business required an intelligent, automated solution that could:
- Integrate seamlessly with banking systems and SAP
- Automate cash application through accurate payment matching
- Reduce manual intervention and operational costs
- Improve collection efficiency through automated customer communication
- Standardize tolerance and write-off processing with proper audit trails
The Solution
JK Tech implemented the HighRadius (HRC) platform to automate end-to-end cash application and collections. The solution integrates bank statements, SAP Accounts Receivable (A/R) data, and customer payment advice received through emails and customer portals. Using intelligent three-way matching, HRC automatically reconciles:
- Open Accounts Receivable (SAP)
- Bank payment transactions
- Customer payment advice
Matched transactions are processed and posted back into SAP for automatic payment clearing.
The solution also enabled:
- Automated tolerance and write-off postings with predefined reason codes
- Intelligent extraction of payment advice from customer portals using automation agents
- Automated collection workflows with configurable follow-up schedules
- Customer reminders and collection notifications
- Centralized tracking of collection activities and collection status
Business Process Diagram:
The Benefits
- Reduced dependency on BOTs and third-party applications
- Lower operational costs by eliminating BOT runs for cash application, tolerance posting, and write-offs
- Faster and more accurate cash application with minimal manual intervention
- Near real-time payment clearing in SAP, improving customer credit availability
- Automated customer reminders and collection follow-ups
- Standardized collection process with complete visibility and audit trail
- Automated overdue and collection reports for faster decision-making
- Improved reconciliation accuracy and reduced processing time
- Enhanced compliance through standardized tolerance and write-off reason codes
