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Straight Through Reconciliation is no longer a dream: Optimising the Order-to-Cash Cycle and remitta

PPG is a major MNC in Europe with 100+ legal entities using Oracle and SAP ERP systems with completely decentralized cash application and collection processes. There were a mixture of electronic and manual processes. The result was very low automatic clearing of remittance rates (to the final target account in the ERP).

PPG installed Autobank and Finance Suite from Hans Orga, fully embedded SAP applications. They also ensured that all bank information is included electronically, centralized electronic bank files, payment terms were correctly entered into the ERP, encourage customers to provide more details electronically, and reviewed and refined all processes.

PPG was able to achieve significantly improved automatic matching rates:

  • in France up from 29% to 91%
  • in Belgium up from 29% to 90%
  • in Netherlands up from 75% to 89%
  • other rates: UK 83%, Poland 89%, Germany 85%, CEE 81%.

The exceptions remaining include: double payments, payment of credit notes, customer deductions, new customers without any reference, and rejected drafts/cheques.

STR - Straight-Through Reconciliation - is no longer a dream. It can be done.

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