Accounts Receivable at large ecommerce platform
Caldera addressed significant inefficiencies in the accounts receivable (AR) process for a large online platform. The previous AR system required manual, transaction-by-transaction posting to SAP, resulting in high operational costs, limited scalability, and challenging report generation. Volume based pricing in the core ERP, combined with large amounts of manual reconciliation resulted in slow, expensive accounting processes and poor visibility of open billings.
Problems
1. AR posting and recon was extremely slow and manual
2. AR entries were posted transaction-by-transaction to SAP, leading to extremely high operating costs, poor scalability, and poor ability to customize / adjust to needs
3. Generating reports/aging from core ERP was very slow and inflexible (and incomplete if it required splicing with other data sources)
Solution
Built an inhouse AR aggregation subledger. All transaction-level entries loaded into Caldera, which automatically calculated GL posting entries, cleared against payment gateways, made manual adjustments etc. Daily aggregate entries posted automatically into GL
Results
The solution led to a significant reduction in the cost and complexity of accounts receivable (AR) processes, with nearly 100% automated clearing that allows staff to focus on analysis and investigation. It also enabled easier customization of reports and provided a daily view of the AR aging position.