Page Industries Reduced 90% Manual Efforts in Cash Application Processes using AlgoriQ

The Objective

To improve operational efficiency by saving time for finance teams in the cash application process.

The Background

Page Industries, headquartered in Bangalore, India, was founded in 1994 and is the exclusive licensee of JOCKEY International Inc. (USA) for manufacture, distribution and marketing of the JOCKEY® brand in India, Sri Lanka, Bangladesh, Nepal and the UAE.

The Numbers

0 X

Faster Reconciliation

0 Days

Reduction in DSO

0 %

Dealers on FreePay

The Numbers

0 %

Reduction in Manual Efforts

0 X

Faster Cash Reconciliation

The Challenge

The payment accounting process at Page Industries was human resource-intensive and took around 3-5 days each month to complete the entire process.

01 Error-Prone Remittance Interpretation

Each customer used to send multiple formats of remittances, which were manually read and decoded by the finance analysts. This manual approach introduced inefficiencies and errors in the process, hampering the team's ability to swiftly and accurately process payment information.

02 Time-Consuming Manual Process

The entire process, from identifying payments from Bank MIS to interpreting remittances and reconciliating them against the ledger, was completely manual. This led to delays and discrepancies in payment processing. Cash reconciliation posed the greatest challenge for Page's finance teams, with 2 hours being spent on processing just 4 to 5 payment advice. Consequently, maintaining the accuracy of financial records became increasingly difficult for the team.

03 High Volume of Deductions

Page Industries receives huge volumes of payments daily. Previously, finance analysts manually tracked deductions, dealing with various types such as quantity shortages, price variances, GST holds, RTVs, marketing claims, and TDS. Reconciling this higher volume of deductions and accurately categorizing them consumed significant time.

04 Tedious Manual Data Entry into ERP

Page's finance team faced challenges with manually updating payment details in the ERP system. This process was prone to data entry errors, impacting real-time visibility into financial transactions and impeding decision-making processes.

Our Solution

Page Industries chose Global PayEX's AI-powered cash application solution, AlgoriQ, to eliminate their AR management challenges.

01 Automated Remittance Interpretation with Document Data Engine

Upon receiving the customer remittance details, AlgoriQ auto-reads the data across multiple formats and initiates a real-time reconciliation process. By automating the remittance interpretation process, AlgoriQ reduces manual intervention required in Page’s cash reconciliation process, thereby alleviating the workload of finance analysts.

02 AI-Powered 2-Way Matching in Accounts Receivable

AlgoriQ’s AI-driven matching algorithms have slashed Page Industries' reconciliation time for single payment advice to less than 5 minutes. The Intelligent Fund Allocation engine matches payment advice against invoices extracted from their ERP system and continually enhances its accuracy by learning from reconciliation paths.

04 Auto-Identification of Deductions

AlgoriQ autonomously identifies the deductions and their corresponding reason codes from extensive payment volumes. It efficiently categorizes deductions based on the buyer-level configuration provided by Page Industries, accelerating the deduction resolution process and ensuring the elimination of unidentified deductions.

03 Auto-Posting in ERP

AlgoriQ automatically knocks off the details of fully cleared invoices and remittances in Page Industries' ERP, SAP ECC 6.0. Any deductions stemming from shortage, rate variance, or customer claims are handled automatically according to Page's posting rules. Payment reconciliation updates are sent to the ERP using scheduled posting, enhancing visibility in their AR functions and saving time significantly.

The Results

Page Industries has successfully realized its goal of achieving substantial time savings and enhancing working capital efficiency through the optimization of its cash reconciliation process with Global PayEX.

The introduction of AlgoriQ has yielded remarkable improvements in their AR management. Previously, their reconciliation process took 3-5 days, whereas now it is completed in less than an hour. It has accelerated their deductions resolution process and improved visibility into the AR workflows. With AlgoriQ in operation, 90% of their finance team's efforts have been reduced, allowing them to dedicate more time to high-value tasks. Page Industries expresses high satisfaction with AlgoriQ's functionality, its seamless integration with their ERP, and its user-friendly interface.

“A highly adaptable solution that has transformed the way we do business”

We have been using FreePay since 2017 and the improvement and efficiency it has brought in our collections and account receivables management has been remarkable.

FreePay has helped deliver electronic invoices to our Channel Partners in real time, process payments with all our business terms plugged in and taken care of our end-to-end customer account reconciliation.

Our Channel Partners have also been very appreciative of introducing FreePay to them especially for its feature capabilities, ease of use, transparency and customer support, without adding any cost to them.

Joseph Selvakumar , Vice President – Commercial ,

V-Guard Industries Ltd.

"AlgoriQ by Global PayEX, helped us optimize the customer payment accounting process significantly.

The process used to require considerable manual effort for data collation from payment advices, identifying differences and accounting the same. AlgoriQ implementation brought about auto data extraction, easy differences identification in payments advices and automatic ERP updates within few hours. We are thankful to AlgoriQ for facilitating the auto customer payment accounting."

Deepanjan Bandyopadhyay, Chief Financial Officer, Page Industries