Use Case: Adding A/R Automation to a Legacy ERP System

Carixa Updates Legacy Accounts Receivable

• Cash Application
• Collections
• Deduction Management
• Management Reporting
• Robotic Process Automation

This case study examines how a $20 billion pharmaceutical company modernized its Accounts Receivable (A/R) processes by implementing Carixa, a bolt-on solution, to overcome challenges with cash application, collections, and deduction management.

The Challenge

The company faced multiple challenges with its legacy ERP system:

• Manual Processes: Cumbersome manual processes hindered efficiency and led to operational backlogs, impacting their ability to close the books on time.
• Increased Transaction Volume: A significant merger tripled transaction volumes, putting further strain on their existing system.
• Repatriated BPO Operations: The company brought back previously outsourced BPO operations, adding complexity to their A/R processes.
• Cumbersome Reporting: Aging and cash forecasting involved manual effort, delaying month-end close processes.

Carixa Solution

Carixa provided a comprehensive solution tailored to the company’s needs:

• Seamless Integration: Carixa integrated seamlessly with their existing Peoplesoft ERP, ensuring smooth data flow.
• Automated Processes: The solution automated key A/R functions, including:
  • Cash application
  • Invoice collections
  • Deduction management
  • Reconciliation
• EIPP and Customer Portal: Electronic Invoice Presentment and Payment (EIPP) with a customer portal streamlined invoicing and payment processes.
• Robotic Process Automation (RPA): RPA was implemented to automatically access and reconcile customer debit memos and returns data.
• Workflow Customization: Workflow rules were configured based on customer class, policy, and amount, enabling tailored processes for different customer segments.

Transition Challenges and Solutions

Transitioning to the Carixa bolt-on solution involved addressing key challenges:

1. Data Migration:

   • Data Extraction and Cleansing: The company thoroughly analyzed and cleansed data from their legacy system to ensure accuracy and consistency for migration.
   • Data Mapping: Clear mappings were established between data fields in the legacy and new systems.
   • Data Transfer: A robust data migration plan was developed and tested in a non-production environment.

2. System Integration:

   • Integration: Carixa’s file synchronization makes seamless communication with the existing ERP.

3. Process Mapping and Optimization:

   • Process Documentation: Existing A/R processes were documented to identify areas for improvement.
   • Process Re-engineering: Carixa’s capabilities were leveraged to optimize workflows, automate tasks, and streamline operations.

Impact

Implementing Carixa delivered significant improvements:

• Increased Efficiency: Carixa automated the processing, collection, and settlement of one million invoices annually, supporting the company’s growth.
• Reduced Manual Effort: Reconciliation automation eliminated a previously burdensome manual process.
• Improved Metrics: The company significantly reduced Days Sales Outstanding (DSO), eliminated backlogs, and achieved timely A/R book closures.

This case study demonstrates the transformative potential of transitioning from a legacy A/R system to a bolt-on solution like Carixa. By addressing data migration, system integration, and process optimization, companies can achieve significant improvements in efficiency, accuracy, and overall A/R performance.