ERP and large-scale accounting systems developed for manufacturers have gained a very strong foothold with the two dominant providers owning a fair share of the manufacturing market. The purpose of this white paper is to look at a small but important subset of these ERP and large-scale accounting suites and ask the question – is there a better way to manage accounts receivable when revolving credit terms are needed?
ERP and large-scale accounting systems are designed to support manufacturing supply chain processes very well; but one of their weakest areas is in managing the receivables component of the business. To date, ERP and large-scale accounting systems are not optimized to support the complexity and variety of credit programs offered by their customers. Consequently, manufacturers and suppliers are turning to specialty software providers to run “subsystems” that interface with their ERP and large-scale accounting solutions.
Many of the large third-party products sell themselves as the “best” at what they do. However, many are single focused applications that may not be right for all companies. In evaluating these packages organizations should ask whether these programs are flexible enough for their needs? Do these products offer the control the company needs? Can they handle the types of credit programs required to stay competitive? Will they support revolving credit programs?
With more pervasive government regulations impacting the financial side of business, having systems in place that can accurately administer accounts receivable programs and credit terms will be even more critical than it was just a year ago. Can the company’s current accounts receivable system change rapidly to accommodate new regulations?
When CoreCard Software created a new approach to receivable management, we asked ourselves a fundamental question that is at the heart of why our products differ from other technology solutions:
What is common across all the applications used in managing accounts receivable?
This simple question allowed CoreCard to view application development with a fresh perspective. All financial service applications boil down to three basic elements:
- Transactions that are posted to those accounts
- Rules by which those transactions are processed
Accounts, transactions, and rules: basic elements and building blocks for any financial service application. The key difference from one application to another is how the data is defined: what type of account, what type of transactions, and what type of rules.