Payment Terms Optimizer app (object-centric)
The Payment Terms Optimizer app for Accounts Receivable helps your teams to track payment terms from end to end of the order-to-cash process, identify patterns and root causes for incompliant usage and variation of payment terms, and act on them to improve free cash flow and the best possible Days Sales Outstanding (DSO).
With the Payment Terms Optimizer app, you can:
Surface patterns of payment term discrepancies between invoices, sales orders and customer accounts.
Identify customer accounts with long or varying payments terms, and surface master data improvement opportunities, as well as accounts with renegotiation potential.
Track the cash flow impact of ensuring payment term adherence directly in the app.
The Payment Terms Optimizer app enables you to pursue corrective action at scale and leverage data-driven, proactive action recommendations to tackle key issues. The app comes with these views:
Payment Terms Checker - This view surfaces critical metrics for payment term adherence, highlighting the customers with the largest working capital opportunities and the lowest payment terms compliance. Accounts Receivable leads and accountants can drill down into different analytical dimensions, such as identifying payment terms with the highest mismatch rates across the whole customer base. They can also analyze specific customers in detail. The Invoice Mismatches view enables systematic tracking of adherence over time for watched customers, and actions including status changes and direct email communication with other departments involved in the order-to-cash process, like Sales and Billing.
Payment Terms Harmonizer - This view provides data-driven recommendations for new payment terms for customers with renegotiation potential. For example, if payment terms are not standard across the invoices sent to a customer, the user will see a recommendation to update the master data term to the most favorable one for your company. The Customer Accounts view lets sales leads and process owners track renegotiation cycles by flagging specific customers and see the status of the renegotiation directly in the app.
The Payment Terms Optimizer app is exclusively available for object-centric process mining and works with objects and events. To enable its use cases, it needs some additional custom object types and a custom perspective. We’ll provide tooling and instructions for you to do this.
Prerequisites for the Payment terms optimization app
Installing the Payment terms optimization app