5 Best practices for effectively managing your cash-flow in SAP
In this guide, you will find the 5 best practices for managing the client item that Credit Managers can use from their SAP solution to optimise their cash flow.
SOA People provides a digital platform integrated within SAP, with specific software tools covering best practices throughout your financial supply chain. Ready4 Credit Management is a scaleable solution that gives you the ability to create in-depth credit checks using mulitple sourced information, with a centralised dashboard to continaually check your risk status.
Credit Management is complex, with crucial credit decisions being made daily that have a direct effect on your company’s profitability. By automating your processes and approval procedures in SAP, you will have the right tools to make objective decisions based on facts. Ready4 Credit Management’s ready-to-use functionality will optimise your order-to-cash processes with an end-to-end credit policy, giving you total control and ensuring your credit risk is completely transparent.
Building relationships with customers is key to a company’s success, but it is equally important to protect yourself from credit risk. That balance can easily be achieved with Ready4 Credit Management. By automating decision workflows, using the latest Fiori Apps for on-the-go decisions and having an efficient and fair dunning process, will ensure you can make the best informed decisions, but also maintain a strong relationship with your customers.
Every software component of our digital platform focuses on specific processes related to best practices on credit management, to support you at every stage. Ready4 Credit Management is designed for all industries and can be easily implemented within a short-time frame. Discover below what Ready4 Credit Management includes.
Assessing your customers’ creditworthiness using up-to-date credit information is the easiest way to screen companies and individuals for possible risk indicators, so you can make informed decisions. Credit Reports allows you to retrieve report information from various credit rating bureaus directly in SAP without having to access their website. This allows you to monitor credit rating information in real-time to make critical credit decisions to minimise risk.
Finding out your customers payment history gives you a valuable insight to see whether they would be a credit risk to your business. Payment Behaviour Pools allow you to benchmark the payment experience of your customers with other companies. Using specialist payment pool agencies, you can gain direct access to past customer payment behaviour data within SAP, giving you a clearer picture of your customers credit history.
Identifying your credit risks early in the credit management process and benefiting from a complete overview in real-time makes your business risk more transparent. Risk Management allows you to integrate internal and external information such as credit reports and your own data history, to implement a fully automated scoring and management-by-exception process to make objective credit assessments.
Excessive administrative workloads whilst fulfilling your credit insurance obligations is time consuming and inefficient. Automating and streamlining your processes will help optimise the performance of your insurance contracts by using a specialist insurance tool for SAP. Credit Insurance can help you manage paperless insurance contracts and help proactively avoid bad debts and safeguard your business by insuring your invoices.
It is in everyone’s interest to manage and settle customer disputes as quickly and fairly as possible. This can be difficult due to the administrative burden in making sure all relevant staff and departments are involved to help solve these issues. Dispute Management helps you collect all relevant information at a centralised location, so you can proactively anticipate payment risks, reduce workloads and increase customer satisfaction.
Efficient payment from creditors is essential to keep your DSO low and ensure the company cash-flow is maintained at the correct level. Cash Collection automates your cash collection processes and can shorten how long it takes to collect your accounts receivables. Using rule-based worklists, customers can be contacted specifically according to priorities and overdue accounts, sending out payment reminders automatically at the right time with the correct information.
A time consuming part of credit management is chasing late payments and resolving outstanding debt issues. Debt Collection can help speed up the process by automating the whole process from submission and obligatory follow-up registrations to the posting of results. It is designed to proactively assess and monitor outstanding debtor information in real-time with live information from debt collector agencies direct to your SAP system.
It is important to be able to quickly generate liquidity and higher equity rates anytime allowing you to transfer the risk and free up valuable resources. Factoring automates the sale of receivables, helping you meet contractual responsibilities and improve your working capital. At a touch of a button, you can turn invoices into immediate cash by offering them to banks and factoring providers.
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