Services

Finance

Achieve complete transparency. Smart decisions have never been easier in finance thanks to Process Mining

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0M
saved

by identifying duplicate payments

0M
gained

by optimizing cash discounts

0%
reduced

in Days Sales Outstanding


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Completely Remove Friction in Finance

Processand ensures complete control over payment behavior, invoice processing, improving outcomes such as Days Payable Outstanding (DPO) and Paid-on-Time, while reducing costs. Duplicate invoice payments can always happen when you’re dealing with millions of invoices, why not avoid that entirely? Processand’s machine learning algorithms ensure that you are notified of duplicate payment candidates, as well as notifying you of any potential duplicate payments in the near future. Friction is the thing with Process Mining.

How we help

Processand’s cross-functional expertise ensures business process optimization and immediate value generation in finance 

Processand Use Cases

Swipe for processes

Accounts Payable
Accounts receivable
Meter to cash
Dues Collection​

Maverick Buying

inefficiency / challenge

  • Definition: POs with invoice receipt before PO or Invoices without PO’s.
  • Purchasing outside of the procurement process is not compliant.
  • These purchases often have worse purchasing conditions.​

solution and targeted outcome

  • Identify suppliers and materials for frequent maverick buying.
  • Educate the related departments.
  • Automated alerting for cases with Maverick Buying. 

business objectives

  • Spend Reduction
  • Compliance

core KPIs

  • #/% Affected Invoices
  • Affected Invoice Value

read more

Cash Discount Losses

inefficiency / challenge

  • In procurement, complexity often creates challenges with paying all invoices according to payment terms.
  • This leads to limited cash resources within an organization.
  • Analysis of cash discounts are time consuming and often only done partially.​

solution and targeted outcome

  • Visualize realized, missed and possible discounts.
  • Measure discount utilization performance.​
  • Get alerted on cases where cash discount is on risk and act immediately. ​

business objectives

  • Compliance​
  • Spend Reduction
  • Working Capital​

core KPIs

  • Cash Discount Potential
  • Cash Discount Realized
  • Missed Cash Discount​

read more

Duplicate Payments​

inefficiency / challenge

  • Duplicate payments often remain undiscovered leading to extra costs.
  • Companies lack efficient solutions to identify and avoid these payments. ​ ​ ​

solution and targeted outcome

  • A machine learning algorithm is implemented which detects candidates for duplicate payments​.
  • An action engine skill notifies about potential duplicates so they can be validated.
  • Mark candidates as true/false duplicates after this check to train and enhance the algorithm.​ ​ ​

business objectives

  • Spend Reduction​
  • Compliance​

core KPIs

  • # Candidates
  • # Confirmed Duplicates​
  • Appr. Value of Confirmed Duplicates​ ​

read more

Days Payable Outstanding​ (DPO)

inefficiency / challenge

  • Lack of awareness on how efficiently incoming invoices are paid.
  • It is challenging to create transparency and measure the proportion of invoices paid too early or too late and the respective business impact. ​ ​ ​

solution and targeted outcome

  • DPO analysis shows the process throughput time from invoice receipt to clearing date taking the due date in consideration.
  • Evaluate the proportion of invoices that are paid early, on-time and overdue.
  • Investigate trends in process analysis to optimize payment behavior.​ ​ ​

business objectives

  • Working Capital​
  • Spend Reduction​ ​

core KPIs

  • Time Invoice to Payment​
  • Overdue/Early Payments ​

read more

Payment Behavior (AP)​

inefficiency / challenge

  • Paying invoices too early or too late should be avoided.
  • Late/early payments have negative effects on working capital.​ ​

solution and targeted outcome

  • Payment behavior analysis sheds light on the bottlenecks where payments are conducted too early or too late.
  • In-depth analysis can reveal patterns in payment behavior regarding vendors, materials etc. and can serve as a starting point for optimization​.

business objectives

  • Working Capital
  • Compliance​
  • Reduce Costs of Dunning

core KPIs

  • % Invoices Paid too Early
  • % Invoices Paid too Late​ ​

read more

Payment Behavior (AR)​

inefficiency / challenge

  • In accounts receivable it is important to ensure that invoices are paid on time.​
  • Companies often lack a transparent overview on how many invoices are paid too late and how many too early. ​

solution and targeted outcome

  • Payment behavior analysis sheds light on the bottlenecks where payments are received too late, and if so, how many days too late.​
  • Enables to conduct detailed analyses on dimensions (e.g., by customers) and consequently execute actions.​
  • Action engine skill can automatically inform the department if the due date for an invoice has passed​.

business objectives

  • Working Capital
  • Compliance​

core KPIs

  • # Invoice Positions Paid on Time​
  • Net Invoice Value
  • Avg. Days Paid too Late

read more

Days Sales Outstanding​ (DSO)

inefficiency / challenge

  • DSO is the average time of outstanding/open receivables.
  • A large DSO negatively impacts working capital and hence liquidity.

solution and targeted outcome

  • Track the development of DSO over time.​
  • Identify bottlenecks in your account collection procedures.
  • Apply analyses and create action plans to optimize DSO.​

business objectives

  • Working Capital​
  • Compliance​

core KPIs

  • Actual DSO (days)
  • Best Possible DSO (days)
  • Invoice Value

read more

First Time Right​

inefficiency / challenge

  • Rework of invoices increases lead times and manual effort.
  • Not all rework activities are avoidable, but a significant share may be.
  • Companies often lack the ability to quantify these avoidable efforts.​

solution and targeted outcome

  • Display invoices without rework activities in a First Time Right ratio.
  • Calculate transformation potential by multiplying time effort of rework activities with FTE costs.
  • Monitor and increase First Time Right ratio to substantially lower the costs associated with rework activities.​ ​ ​

business objectives

  • Working Capital​
  • Labor Productivity​

core KPIs

  • First Time Right Ratio​
  • Transformation Potential​ ​

read more

Billing of Installations

inefficiency / challenge

  • The complexity of the process may cause the installations to not be billed correctly.
  • High manual effort is needed to identify and resolve root causes.
  • If an installation can't be billed once, all billings in further billing period will also fail.

solution and targeted outcome

  • Determine all billing periods and assign all relevant documents (MR and billing documents, Invoices, Contract, Clarification Cases, etc.).
  • Identify and cluster root causes.
  • Use Action Flows to execute predefined actions.

business objectives

  • Working Capital
  • Labor Productivity ​

core KPIs

  • # installations w/o billing
  • # Clarifications Cases

read more

Automation of Meter Reading Preperation

inefficiency / challenge

  • Choosing the meter reading category (self meter reading/reading through external provider/ automatic estimation) for each installation is a laborious manual process.
  • Communication with external service provider requires manual effort.
  • Errors can occur due to manual mistakes or data inconsistency between systems.

solution and targeted outcome

  • Choosing the meter reading category automatically based on rules and machine learning.
  • Automate communication with external service providers.
  • Reduce throughput time and manual errors.

business objectives

  • Working Capital
  • Labor Productivity

core KPIs

  • # Installations w/ Self Meter Reading
  • # Installations w/ Reading Through External Provider

read more

Basic and substitute supplies

inefficiency / challenge

  • Due to current circumstances, an increased number of gas and electricity suppliers may go bankrupt, therefore, increased number of households may fall into basic or substitute supply.
  • Due to multiple stakeholders, integration of those households can be prone to errors.

solution and targeted outcome

  • Display and monitor the complete process.
  • Reduce manual effort through predefined actions.

business objectives

  • Working Capital
  • Labor Productivity

core KPIs

  • # Households in Basic or Substitute Supply

read more

Dunning 

inefficiency / challenge

  • If dunning does not happen automatically after a certain period, the time to cash gets prolonged until dunned manually.
  • Dunning fees are often not paid and mostly below the de minimis limit and therefore are not dunned.
  • Due to lack of transparency, credit may be disbursed even though dunning proceedings are currently in progress​.

solution and targeted outcome

  • Getting an overview of all invoices that need to be dunned including the progress after the first overdue notice.
  • Identification of customers/clients that don’t pay on time regularly and additionally try to avoid paying the dunning fees.
  • Alerting with comment function for invoices to be dunned, to minimize the time to cash by a quick responsiveness​.

business objectives

  • Working Capital
  • Labor Productivity​

core KPIs

  • Dunning Amount
  • Dunning Fees
  • % Realization Rate of Dunning Amount ​ ​

read more

Returned payments – Due collection ​

inefficiency / challenge

  • Based on several reasons, returned payments can occur when the due collection is done via direct debiting.
  • Returned payments lead to bank fees, that are charged to the company and that increase if the payment gets returned after a second attempt.
  • Besides the monetary impact, the time to cash increases and manual effort arises. ​

solution and targeted outcome

  • By optimization of the direct debit (SEPA or ACH) payment method returned payments can be reduced in combination with fewer bank fees and manual effort.
  • Analysis of more suitable due dates & rates for due collection.
  • Automated alerts for accounts that regularly return payments​. ​ ​ ​

business objectives

  • Working Capital
  • Labor Productivity
  • Spend Reduction​

core KPIs

  • # Returned Payments
  • Sum of Refusal Fees
  • % Settled Refusal Fees
  • % Open Refusal Fees​

read more

Learn More About Process Mining.

GET IN TOUCH

Begin Your Process Mining Implementation

With over 350 process implementations, we know exactly what the crucial parts of a successful Process Mining initiative are

Nicolas Möller

COO

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