Managed Accounts Receivable Solution
Unlock working capital to support business goals
Go beyond software: Corcentric O2C Managed AR guarantees DSO reduction, on-time payments, improved working capital, and elimination of bad debt
Fact: To move at the speed of business, software isn’t nearly enough.
Corcentric Managed AR solutions take you beyond technology, enabling your finance department to focus on meeting growing business demands through a powerful combination of subject matter experts, financial services, and software. This platform for managed accounts receivable is a one-stop solution for optimized O2C and accounts receivable management that delivers guaranteed business outcomes…and sustainable bottom-line performance. Our AR management solutions help finance and accounting professionals across multiple industries streamline their operations and take advantage of opportunities. No matter what industry you serve, our systems make it easier to minimize risks and maximize efficiency.
Reducing Days
Sales Outstanding
Eliminate Bad Debt +
Risk of Non-Payment
Administration of Disputes
and Collections
Role of managed finance and accounting
services during the pandemic
38%
view working capital issues
as a top challenge.
49%
of CFOs immediately
focused on liquidity.
52%
open to leverage third parties for handling finance and accounting functions.
Source: Everest Group 2020 Global CFO Survey
Credit Management
Corcentric Managed AR will take on your customer credit issuance processes — re-assess, conduct credit checks, and issue lines of credit — and take on your credit risk. Our solutions free your team to focus on business growth instead of accounts receivable credit management processes and technology, while we transform your accounts receivable processes and improve your cash flow.
- Gauge creditworthiness: Get the right information on each customer you want to work with.
- Consolidate Credit Data: Incorporate credit bureau reports from leading firms like Dunn & Bradstreet and other data provider information into your credit scoring.
- Issue customer credit lines while mitigating credit risk: 100% of receivables risk is eliminated and transferred to Corcentric through our Supply Chain Finance Program.
Invoicing + eBilling
Corcentric Managed AR takes the entire invoicing and billing burden off your team, automating accounts receivable and improving invoicing accuracy in the process. Our Managed AR handles validation, presentment, and distribution, reducing costs and DSO to improve your company’s cash flow.
- PO Management: PO and invoice matching ensures accuracy.
- Tax Calculation + Exemption: Calculate state, local and regional taxes to help with compliance.
- Price Validation + Auditing: Ensure invoices match your negotiated pricing.
- Rebates + Promotion Management: Maximize spend efficiency by calculating and applying rebates and promo discounts — on-invoice and bill-back.
- Validation + Exceptions Management: Invoice confirmation prior to submission avoids buyer-supplier disputes.
- Presentment: Eliminate the cost, inefficiency, inaccuracy, and waste of paper-based invoicing.
- Invoice Distribution:
- A self-service portal — branding with your company logo — connects you with customers for invoice review and approval, dispute management, and business insights.
- Send electronic invoices to all your customers, no matter where they are located.
- Also include other forms of invoicing
Dispute Management
Billing errors may be unavoidable, but disputes don’t have to be. The experienced team of AR professionals and robust software of Corcentric’s O2C accounts receivable management solutions mitigate issues before they escalate. If a dispute occurs, our Managed AR team handles resolution, only involving your team when necessary.
- Dispute Prevention: Our expert dispute and exception management team uses your business rules and root case analysis to prevent and mitigate any disputes, with proven online dispute and exception management technology.
- Self-Service Dispute Management: Online dispute management portal.
- Dispute Resolution: Corcentric provides one point of contact to manage all disputes and resolutions.
Collections Management
With Corcentric Managed AR, your finance department no longer requires a substantial investment in human capital, technology, and compliance expertise to collect delinquent accounts receivable. With 20+ years of experience, our proactive communication approach handles debt collection without damaging the potential for future business opportunities with customers.
Cash Application
Why wait? Get paid on your terms — 5, 15, 30-days — and receive all payments due in a single payment from Corcentric. Our Managed AR solution lifts the burden of cash application from your team, managing payment information, remittance, invoice matching, deduction management, and reconciliation of your payment process.
Supply Chain Finance
Corcentric Supply Chain Finance provides guaranteed on-time payments and DSO reduction to suppliers on your terms, enabling suppliers to improve cash flow while giving you greater control over working capital.
- Invoices paid earlier than due date: Guaranteed, fixed DSO on receivables — 15, 30, 40 or even 60 days earlier — while your buyers pay as usual.
- Payment receipt on time, every time: Corcentric eliminates credit risks and bad debt expenses with no more unpaid invoices.
- Serious cost savings: Remove the burden of billing production and fulfillment, credit issuance, collections, disputes, and exceptions resolution; Accelerated accounts receivable, for example, allows you to pay your suppliers earlier and save your company 1 – 2%; or use a portion of the liberated cash to prepay supplier obligations and book early payment discounts.
Managed AR Services
Our O2C AR management services meet your financial and operational business needs by combining people, process, technology, and financing. By removing your entire order-to-cash burden, your team is free to focus on critical business growth while we liberate your cash flow and deliver value from Day 1.
- Strategic Business Partnership: Our Managed AR leaders partner with your executive team to develop a joint value proposition aimed at growing your existing customer base and opening new opportunities.
- Strategic Marketing Partnership: The Corcentric team co-produces and co-promotes all aspects of marketing efforts, like email campaigns, webinars, and event marketing to drive growth.
- Customer Enrollment + Setup: Our team will help you and your customers get acquainted with all the features of Corcentric Managed AR solutions. The flow of your onboarding process will depend on each user’s specific needs – Welcome Kit, initial over-the-phone outreach, and in-person or online training.
- Dedicated Customer Success Team: Ongoing dedicated team including Executive Sponsor, Customer Success Manager (CSM), Discrepancy Manager, Dispute Manager, End-user Trainer, and Customer Support Reps to ensure your success.
Analytics
Empower executives with actionable insights into your order-to-cash and accounts receivable processes.
- Receivable performance
- Customer risk profiling
- Accounts receivable (AR) aging report
- Month-end reporting
- DSO reports
- Sales reports
- Spend analysis
Did you know?
Up to 50%
guaranteed
DSO reduction.
$2.2B+
annual guaranteed
payment transaction value.
$0
in late payments
due to disputes.
$0
bad debt
expense.
How Corcentric Managed Accounts
Receivable optimizes your AR process:
We’ll help build a managed accounts receivable strategy that builds stakeholder support
Managed Accounts Receivable (AR) FAQs
What is Managed Accounts Receivable or Managed AR?
Managed Accounts Receivable, shortened to Managed AR, combines service, technology and funding to unlock working capital and provide cash flow predictability. Corcentric acts as an extension of your accounts receivable team, managing the delivery and collection of invoices as part of your brand. This is a fully-funded and non-recourse service, providing guaranteed cash flow with no hidden costs.
How does Managed AR work?
Managed AR provides you with guaranteed payment of invoices within a specified number of days, to your payment terms. This guarantee of payment is funded and non-recourse, providing 100% cash flow certainty based on the value of your receivable ledger.
Corcentric owns the invoicing and collections process but acts as a white glove extension of your business, so customers do not perceive the involvement of a third-party.
How is Managed AR different than Invoice Factoring?
Invoice factoring works by you selling invoices to an invoice factoring provider, who then operates as they see fit to bring payment in from your customers. The factoring provider may only want to purchase the lowest-risk parts of your receivable ledger and may also charge you extra if they fail to collect payment from customers within an agreed timeframe.
Corcentric Managed AR operates as an extension of your accounts receivable team, removing the risk of heavy-handed collections processes, or a third-party collections agency. Managed AR is also applicable to your entire receivable ledger, with a non-recourse agreement to ensure you are not liable for any customers who default on payments – this is covered by the service charge, calculated to absorb a reasonable degree of risk.
How does Managed AR free up Working Capital and reduce DSO?
By entering into an agreement with Corcentric for Managed AR, you are given the assurance of invoice payment for 100% of your invoices within the agreed number of days. If your average DSO is 45 days and you set a payment timeframe of 15 days with Corcentric Managed AR, you liberate working capital through this reduction in days sales outstanding (DSO). You get paid on day 15, guaranteed, by Corcentric. Corcentric provides the funding to cover the difference in time between your payment and when Corcentric collect the invoice payment from your customers’ accounts payable department on your behalf.
Can Managed AR remove the risk of bad debt?
Through the non-recourse guarantee implicit in Managed AR, you do not need to worry about any hidden charges for non-payment by customers. This essentially removes the risk of bad debt entirely. Accounts receivable credit management through Corcentric’s automation of electronic invoicing delivery, follow-up and payment options naturally optimizes workflow as well as provides the funding to eliminate your cash flow exposure to past due invoices and write off bad debt.
Will Receivable Management impact Credit Policy and impede sales?
The decision to Outsource your accounts receivable ledger to Corcentric for the automation of invoicing and collection does not need to restrict your credit policies – an important offering as part of your sales process. Business owners can rest assured that Corcentric takes on the responsibility and risk of extending credit and collecting from your full range of customers, without needing your credit policies to limit the liabilities of those customers with weaker financial statements, payment plans or a previous history of late payments.
