{"id":55303,"date":"2023-06-09T04:07:26","date_gmt":"2023-06-09T02:07:26","guid":{"rendered":"https:\/\/www.cbs-consulting.com\/?p=55303"},"modified":"2026-10-08T08:04:39","modified_gmt":"2026-10-08T06:04:39","slug":"smart-process-automation","status":"publish","type":"post","link":"https:\/\/www.cbs-consulting.com\/apac\/smart-process-automation\/","title":{"rendered":"Smart Process Automation for Credit Risk Classification"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]In the current business world, <\/span>knowing whether a customer will pay on time is critical<\/span>. Late payments can disrupt cash flow, increase credit risk, and cause financial instability.<\/span> Classifying customers’ credit risk as good or bad based on payment history can help identify potential payment issues and take proactive measures to mitigate them. For <\/span>example,\u00a0 information<\/span> can be used to adjust credit terms, request partial payment upfront, or even decline orders from customers with a history of late payments. These will be made <\/span>more accessible<\/span> with the aid of process automation<\/span>, which cuts down manual efforts and increases the Purchase Order release rat<\/span>e. It will undeniably improve <\/span>the cashflow<\/span> management and result in an efficient workflow of Accounts Receivable.<\/span> To understand more, please continue to read below.<\/span><\/span>\u00a0<\/span><\/p>\n

<\/h2>\n

 <\/p>\n

Introduction<\/span><\/b><\/h2>\n

In the current business world, a common practice of accounts receivable as the following:\u00a0<\/span>\u00a0<\/span><\/p>\n

    \n
  1. Generating and sending invoices to customers:<\/strong> Once a sale is made, the company generates an invoice (proof of delivery\/services) and sends it to the customer.<\/span><\/li>\n
  2. Recording invoices:<\/strong> The invoices are recorded in the company’s accounting system to keep track of the amounts owed by customers.<\/span><\/li>\n
  3. Recording payment receipts:<\/strong> When the customer pays the invoice, the company records the payment in its accounting system to update the customer’s account balance.<\/span><\/li>\n
  4. Follow-up on unpaid\/overdue invoices:<\/strong> If the customer does not pay the invoice on time, the company follows up with the customer to collect payment.<\/span><\/li>\n
  5. Reconciliation of customer accounts:<\/strong> The company reconciles the customer accounts to ensure that all payments are properly recorded, and that the customer’s account balance is accurate.<\/span><\/li>\n
  6. Aging analysis:<\/strong> The company analyses the age of outstanding customer invoices to determine which invoices are overdue and require follow-up.<\/span><\/li>\n
  7. Bad debt provision:<\/strong> The company may need to make a provision for bad debts, which is an estimated amount of money that is unlikely to be collected from customers.<\/span><\/li>\n<\/ol>\n

     <\/p>\n

    The accounts receivable process involves generating and sending invoices to customers, recording invoices and payment receipts, following up on unpaid invoices, reconciling customer accounts, conducting ageing analysis of outstanding invoices, and making provisions for bad debts if necessary. This process helps companies keep track of amounts owed by customers and ensure accurate accounting of payments. <\/span>So, what might be potentially a challenge? <\/span>\u00a0<\/span><\/p>\n

    <\/h2>\n

     <\/p>\n

    What are the pain points of the current Account Receivable process? <\/span><\/b>\u00a0<\/span><\/h2>\n

    The current accounts receivable process faces several pain points. Firstly, there is a lack of visibility into the status of accounts receivable, making it challenging to prioritise collections and manage cash flow efficiently. Secondly, late or delinquent payments can negatively impact cash flow and profitability. Lastly, the process of collecting payments from customers is often time-consuming and costly, involving numerous follow-ups and collection efforts.<\/span>\u00a0<\/span><\/p>\n

      \n
    1. Lack of visibility:<\/strong> Companies may lack visibility into the status of their account receivable, which can make it challenging to prioritise collection efforts and manage cash flow effectively.<\/span><\/li>\n
    2. Late or delinquent payments:<\/strong> Late or outstanding payments can have a significant impact on a company’s cash flow and profitability.<\/span><\/li>\n
    3. Time-consuming:<\/strong> Collecting customer payments can be a time-consuming and costly process involving multiple follow-ups and collection efforts.<\/span><\/li>\n<\/ol>\n

      [\/vc_column_text][vc_empty_space height=”80px”][vc_column_text]<\/p>\n

      SAP <\/span>Signavio<\/span> and <\/span>SAP <\/span>Build Process Automation<\/span> – How Does It Help?<\/span><\/span>\u00a0<\/span><\/h2>\n

      [\/vc_column_text][vc_single_image image=”55368″ img_size=”full”][vc_empty_space height=”52px”][vc_column_text]SAP Signavio, in combination with SAP Build Process Automation, can provide synergy to significantly improve the current account receivable process with a high degree of automation, efficiency, and effectiveness.<\/p>\n

       <\/p>\n

      SAP Signavio is a software suite\u00a0to design, analyse and improve business processes and manage process changes. In addition, the solution makes it possible to monitor the success of process adjustments in the long term. It consists of different solutions for various stages of business process management:<\/p>\n