Good credit management requires an up-to-date accounting. That seems obvious and easy, but in real life, it is often not the case. For example, due to unprocessed credits and debits that belong together. As a result, you can’t automate processes. If you do, there is a risk that you will send incorrect information to customers.
One of the challenges in keeping your accounting up-to-date, is that matching transactions (invoices) that belong together is time-consuming. Time that may not be available within the team. Fortunately, in many cases, there’s a logical link between these transactions and that means it is suitable for automation. One of our customers was aware of that and wrote business rules to automate this in MA!N.
The solution consists of a few elements:
- Rules for finding matching transactions in MA!N.
- An approval process in MA!N.
- Sending journal entries to the financial system.
The first step is learning MA!N how to recognise matching transactions. For example, a credit that has the original invoice code as a reference to the debit. The rules can defer per organisation, and that’s why each organisation sets its own rules in MA!N.
The certainty with which MA!N can link transactions determines the further operation. If there is 100% match, MA!N continues the process without intervention of an employee. With a lower score, an employee must confirm or reject the suggested match.
There is an option where an employee can manually revert automatically approved links and MA!N can also send a daily generated report with all approved transactions. These additions ensure that the organisation keeps control over what happens.
Knowing which transactions belong together is convenient, but the goal is of course that they disappear from the list of outstanding items. The next step is therefore closing the matched transactions in the financial administration. MA!N creates and sends a journal entry for the financial system for processing this in the background.
This solution saves time and delivers our customer an up-to-date accounting. As a result processes like sending reminders are now automated and people have more time for actual debtor management. And not unimportantly, KPIs such as DSO are calculated correctly.
The idea for this functionality arose from the creativity of our customer and is an example of the added value that the flexibility of MA!N offers. This is independent of whether you use MA!N as credit management software or as a low code platform.