DCS recently completed integration SAP IDoc™ financial modules with SunGard’s AvantGard™ for automation of EDIFACT PAYORD and PAYMUL remittance advice documents. Although the performance metrics are still being monitored, the management is more precise.

Overview

A secure payment file is sent to the bank. It contains the name and identification number of one or many other banks and the payment amount and date for each payee. Simultaneously, a Remittance Advice is sent to your Trading Partner.

All deduction information is accurately delivered to minimize disputes. European and East Asian payees and payors (such as your customers, vendors, and government agencies) support the EDIFACT format for remittance advice data. Fortunately, the cost of modules and integration is declining so that even mid-sized companies can consider e-payments.

Here’s how it works: Financial data for vendors is extracted from SAP using an IDoc. This means the existing thorough and time-tested payment control safeguards already used remain in place. The process automation improves the timing of cash outflows and provides an immediate and detailed acknowledgement from the bank of the disposition of funds.

The X12 Remittance Advice (820) and the EDIFACT PAYORD and PAYMUL (as well as the X12 820 Remittance Advice) contain the payment information needed. The first step is to check your accounting or ERP system to learn if it has an EDI for payments module. The treasury group works with their existing application, not the EDI system, so little disruption occurs. After a few key vendors are successfully implemented, you can get the rest on board at your own pace.

Most popular users of PAYORD and PAYMUL for financial EDI documents are automotive and capital equipment companies.

Key Challenges Achieved

• Learning the requirements of numerous banks in 14 countries. Analysis was the most critical task.
• Testing, due to time zone and language hurdles
• Training treasury users to coordinate both flows – payment file to the bank and remittance advice file to the payee
• Also, training to reconcile inbound payment files and remittance advices from payors
• Managing exchange rate information

This company was able to convert without disruption or loss.

You will enjoy lower stress with an expert’s assistance. DCS knows financial EDI and can link existing EDI and ERP systems. Adding a few payees and payors can be done quickly and economically to prove the concept. A roll-out of only 2 months can then automate most vendors. Having DCS set the first few customers and secure data transmission parameters will lower the cost of implementation and hastens payback. Considerable savings and wider processing window can be achieved. Our DCS GROW™ Development Service ensures your implementation will be smooth and your cash flow uninterrupted. The first step is easy, e-mail DCS for your Free Assessment