Intelligent accounts receivable matching

Cash application is a part of the accounts receivable process that involves matching incoming payments to their corresponding invoices and client accounts. While seemingly straightforward, the process for a large, global and diverse organization like Accenture is complex and performed at huge scale.

Accenture issues more than half a million client-facing invoices each year from 200 locations globally. Every year that volume increases and is projected to increase exponentially every five years with Accenture’s organic and inorganic growth. Our SAP S/4HANA® system was enabled to successfully match transactions, but the “hit rate” proved to be much lower than expected. A rule-based method requires exact matching of information and time-consuming manual maintenance due to extensive location-specific configuration settings. To complement the technology solution, we leveraged our cost-effective locations, driving results that got to the right outcome but were significantly more time consuming and less efficient. For a rapidly growing enterprise we knew there was a better way.

Accenture brought to light the specific needs of large enterprises. Our combined Global IT and Finance team identified issues or enhancements to make on regular calls with SAP developers who addressed the new input in agile development sprints. We co-developed localizations and enhanced capabilities with SAP in the following areas:

Removing duplicate internal customers included in transmissions to the cloud. Accenture identified that the solution was considering client accounts that were not relevant to the cash application process in the logic of the model. This action caused the system to needlessly match on those items and send them to the cloud, also skewing the algorithm. SAP recognized this and released the standard ability to exclude non-relevant customer types.

Maturing a lockbox solution. Lockbox is a check processing solution used solely in the United States and Canada. Accenture is actively working with SAP on maturing a lockbox machine learning solution and will be the first customer to pilot it. Accenture completed a successful technical proof of concept in late 2021 and is planning to deploy the solution into production in 2022.

Adjusting intra-country, cross-company code transactions. Accenture was unable to roll out SAP Cash Application to India and the Philippines where Accenture may have multiple country codes for legal and tax purposes that represent a country but receives all payments through a single company code. These codes then need to be applied to the different entities. We raised this need as a requirement and are currently co-developing the model based on Accenture’s system.

Flagging duplicate bank statements sends. Accenture processes bank statements around the clock globally. SAP Cash Application lacked a way to recognize the receipt of a bank statement, resulting in multiple bank statement information re-sends to the cloud service, causing overpayment of line items transacted. SAP recognized the requirement and made the exclusion of duplicates a standard solution.

Enhancing reporting. Accenture participated in workshops to provide extensive input on desired reporting items as well as feedback in the development of SAP Model Manager, a self-service reporting tool. Accenture is the first company to onboard to the reporting solution and continues to provide feedback.

In parallel to the co-development work with SAP, Accenture continues to progressively roll out SAP Cash Application to service center locations. We also continue to co-develop with SAP on requirements needed.