HSBC Global Payments and Cash Management have launched a new automatic reconciliation solution for fast moving consumer goods (FMCG) clients in Asia. The new solution, which is part of the integrated receivables solutions (IRS) product suite, will allow HSBC's FMCG clients to transform their accounts receivable cycle by automating the reconciliation of incoming payment advice details against outstanding invoice records, thus speeding up the application of their cash received.

HSBC believes that FMCG clients will produce significant working capital benefits, as well as the ability to improve the management of their own credit risks thus enhancing business opportunities with their counterparties. FMCG companies generally receive bulk payments from their customers for multiple invoices. To provide information on what invoices are being paid, remittance advices in varying file formats are sent by customers. Because of the numerous and complex remittance advice formats and payment types, automating this reconciliation process entails significant capital and IT investment. Hence, most corporates have resorted to a manual reconciliation process, which are both inefficient and time consuming.

HSBC'S FMCG automatic reconciliation solution automates the reconciliation of payments and remittance details by intelligently matching the payments credited against the corresponding payments advices. This unlocks the cash trapped in the accounts receivable cycle faster and with better control, while eliminating manual processes and reducing operational costs and errors.

Available across 17 markets in Asia-Pacific, the solution provides HSBC's clients with an opportunity to standardize, and centralize, their accounts receivables processes across the region. HSBC plans to extend this solution beyond FMCG to other industries in due course.