Re: JBA ML - Accounts Payable Checks

Art, the process is quite straight forward and the savings and efficiencies
are significant. The ROI on a small project such as this is very short,
bringing immediate rewards.

Almost all large banks provide corporate banking software for PC
applications. I expect most of your customers already use this for bank
recs, down loading statements, manual electronic payments, notification and
control of periodical payments, foreign exchange hedging, etc. This is a
prerequisite for System 21 electronic payment as this is the software which
will perform the actual transfer of funds.

Conceptually, when a conventional check run is made there are two resulting
outputs. One is the check/remittance print and the other is the cash
requirement report (the "final" report). Rather than print the final report,
down load the details of the report to the banking software. In English, it
is printed to file and the banking software reads the file. You can automate
this with a routine for ease of use. Note that unless you have a lot of
cash, remember to clear the file after each time or as the first step of
each new run. Note that the report needs a few extra details such as
supplier bank account details. There is a place for this, I think in CSM.
It's in the same spot as Customer bank details as used for bank deposit
reports.

Obviously checks no longer need to be printed. Reset the check printing
option to print remittances only. OK, these may be printed and posted or
faxed. You should really populate the supplier master file with the fax
number then get the system to fax the remittances automatically.

You need to gather bank details from your suppliers and as you can stop
payment until they comply you have the upper hand. You should confirm the
bank details with a letter to supplier management (not the person who gave
the original details) to ensure you are transferring funds to the
appropriate account - not a personal account. This letter may be automated
using the AR letters.

I'm sorry I can not remember the file names and specifics - it's been a
while.

The benefits are tremendous. Because Sys21 is great at managing posting
sessions with system generated session numbers the invoices should be filed
by posting session. Once entered, the session audit report should be
approved by the person who once signed checks. Prior to a check run, ensure
all sessions are accounted for and that way you know everything in AP may be
paid, cash flow permitting. The invoices get entered, approved and filed -
once only and can be found later by referring to the posting session number
on the enquiry screen.

With this and intelligent use of 3 way matching, I have seen teams of 3
staff in AP be reduced to just 1 as a result of significantly reduced paper
handling and shuffling.

The only down side is that once the electronic payment is made the funds are
no longer in your bank. Some cash strapped organisations rely upon
unpresented checks. Your selection process for payment remains unchanged.

I did this at a large site here in Melbourne. They started out with 37
companies and accounts departments, turning over AUD 1+ Bil. They got down
to 4 accounts departments and their check runs were to the tune of over a
thousand checks. Needless to say the savings paid for the work within weeks.
They later got down to 1 AP department but I'm not sure where they went from
there.

There you go JBAers, if you can't use this to make a buck and at the same
time bring immediate and significant rewards to your customers, (thus making
them happy) then I'm a chinaman. Get out there and sell a solution. Gee,
what a concept!

Steve
Ex JBA - its a terminal illness I'm sure... I'm affraid I've got it for
life.











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Re: JBA ML - Accounts Payable Checks - EDI
