Matching incoming payments with invoices has long been a frustration for companies. Many valuable hours are spent trying to determine who's paying for what. To address this issue, Bank of America Merrill Lynch has announced Intelligent Receivables, a new solutions that uses artificial intelligence (AI) and other software to help companies vastly improve their straight-through reconciliation (STR) of incoming payments to help them post their receivables faster.
Intelligent Receivables is designed for large or complex companies that are seeking to reduce costs, decrease days-sales-outstanding (DSO), and improve cash forecasting and their end-customer experience.
Suited for large volume of payments
The new solution is ideally suited for companies that manage a large volume of payments where the remittance information is either missing or received separately from the payment.
Incomplete remittance information typically leads to an arduous and costly reconciliation process, explained Rodney Gardner, head of Global Receivables in Global Transaction Services at Bank of America Merrill Lynch.
"Our solution brings together AI, machine learning and optical character recognition (OCR), setting a new bar in accounts receivable reconciliation and payment matching," added Gardner.
Intelligent Receivables, which is powered by HighRadius, a fintech enterprise software-as-a-service (SaaS) company, achieves improved straight-through reconciliation through four steps:
- Identifies payers and associates their payments to remittances that are received separately.
- Extracts remittance data from emails, email attachments, electronic data interchange (EDI) and payer web portals.
- Matches payments to open receivables using the enriched remittance data.
- Creates a receivables posting file that the client uploads to their ERP system.
Additional functionality provided by Intelligent Receivables to help companies improve STR includes:
- In cases where an invoice cannot be automatically matched, an exception portal allows the receivables staff to upload supporting data or make other adjustments to enable matching.
- A client can set up automatically generated emails to payers, asking them to identify which invoices they wish to pay.
- The solution’s dashboard reporting can assist in cash forecasting and help clients better understand payer behavior.
Intelligent Receivables is currently available in the United States and Canada. It will become available in other countries and regions later this year.