The benefits of implementing Alloc8 Cash Allocation automation software

1. ALLOC8 Benefits & Case Studies
Benefits
The benefits of the ALLOC8 system fall into two categories, process efficiencies and control and are
supported by case studies which are detailed later in the document. The benefits have been detailed in
the order in which they occur in the Cash Allocation process.
Efficiencies Controls
1 Reduced need to file Remittances - on screen 100% Reconciliation – ALLOC8 starts with the daily
matching reduces need for remittances, therefore bank balance(s) and as the system will not allow a
no need to spend time filing them into either date receipt to be allocated by either more than its value or
or value order more than once, the Bank to sales ledger reconciliation
will always match.
2 ALLOC8 Learning & Automatching - Once a Electronic Audit Trail – every transaction is recorded
receipt is matched, ALLOC8 learns the to identify the user and the action carried out so that
relationship and can have many to many tracing a receipt to allocation or an allocation to receipt
relationships between accounts. ALLOC8 uses the is simple and effortless
learned data to apply a set of complex algorithms
to match receipts to invoices. This can reduce the
receipts that need to be manually matched by upto
80%.
3 Autofinder – a manually selected algorithm which Query Log – the ability to put notes or log a query
identifies a unique match from a large number of against a receipt means no more ‘post-it’ notes or
outstanding invoices, reducing the manual effort forget to chase the payee for details
required still further
4 Autoload – no need to key the receipts and Status Management – every receipt has a status
allocations manually to the sales ledger, an assigned during the lifecycle through ALLOC8 which
interface file is produced to automate this process. enables the user / management to identify where
receipts are in the process
5 Remittance Logging – for receipts that reflect a Performance Measurement – unlike the traditional
large number of invoices, the data can be manual process which is almost impossible to
captured at the remittance stage either as a cut performance manage, ALLOC8 shows you minute by
and paste from an electronic file or through fast minute how many Receipts are still to be actioned and
data entry so that when the receipt is received by status
there is no delay in the allocation
6 Search – ALLOC8 enables a comprehensive Unallocated Cash – the ease of matching and the
search to be undertaken based upon a number of visibility of where receipts are in the process result in
different fields which means when a Customer over 98% of receipts being allocated to invoice first
states that they have already paid, the search time, additionally payments can be allocated to
result will categorically prove whether the receipt Customer Account or a holding account but usually this
has been received or not. The search can be done is not required
either from the receipt forward or the allocation in
the sales ledger backwards.
7 CHEQUE-M8 – a cheque processing application Segregation of Duties – the allocation to invoice first
that scans the MICR from a cheque, which using time results in Credit Control staff not spending time
the same control process for batching cheques for with Customers finding out how to allocate payments
processing purposes removes 90% of the
downstream processing after the initial electronic
‘tally roll’ has been produced.
8 Reconciliation – an automated report provides Accuracy – the room for allocating to oldest first or to
the full Bank to sales ledger reconciliation. accounts that do not belong to the payee is significantly
reduced if not removed altogether as the automatching
process takes over
9 Fast realisation of Benefits - simple & intuitive to Upto Date – ALLOC8 does not need to take holidays or
use, ALLOC8 requires no major project to install sick, if there is a problem with internal Networks or
and the training takes only hours, therefore power etc., getting upto date can be very quick and
benefits can be gained from week 3 if the does not require overtime or extra staff.
organisation operates a weekly invoicing process
Rimilia Ltd 6 Wilsons Road Knowle Solihull West Midlands Tel 01564 772038 – www.rimilia.com – enquiries@rimilia.com

2. 10 Resource Saving – depends on the size of the Business Continuity – ALLOC8 is web based so with
team initially, however case studies show that the right set-up can be accessed from anywhere with
even where 2 people undertake the existing an internet connection. Also, in the event of postal
process, upto 75% of their time can be saved or strikes, the reduced reliance on remittances does not
utilised on more value adding activities cause backlog issues.
Case Studies
Statistics Customer 1 Customer 2 Customer 3
Number of BACS receipts 2000 2200 400
per day
No. Bank Accounts 1 4 2
No. Open Invoices 250,000 200,000 90,000
No. staff prior to ALLOC8 15 24 10
Unallocated on Account £3.2m £5.3m £0.3m
Unallocated Suspense £1.0m £2.8m £0.8m
Days delay in allocating 5-6 days 3 -5 days 3 days
DSO 110 65 54
ALLOC8 implemented
No. staff after ALLOC8 4 10 4
Unallocated on Account £130k £190k £80k
Unallocated Suspense nil £20k nil
Days delay in allocating by 12pm on the day by 1pm on the day by 12pm on the day
DSO 36 days 50 days 34 days
It is accepted that not all of the improvements above can be directly attributed to the implementation of
ALLOC8, however being upto date in allocating cash results in:-
 a clean sales ledger from which Credit Controllers can confidently undertake collection actions
 Credit Controllers collecting and not spending time allocating cash on account
 reduces the number of inbound customer calls when ‘dunned’ stating they have already paid
Additionally, ALLOC8 has been implemented in a medium sized factoring company which had 2 fte
allocating cash daily predominantly to Customer Account since their clients position depends on upto date
balances . The driver for implementing ALLOC8 was driven by the increased control associated with
accurate allocations given the lending that is being made from the resultant account balance, they have
also however achieved a saving of 1.5 fte as the cash is now allocated to invoice by 11am every day.
What is:
Auto Matching – 90%
Sales Ledger
Extract
Filter Exception Payments Sales Ledger
BACS
Auto Load Matched General
Payment Cheques Match
Payments Ledger
File
Faster
Payments
Flexible Reporting Bank
Remittance Advices S/L
Reconciliation to : G/L
Bank
Rimilia Ltd 6 Wilsons Road Knowle Solihull West Midlands Tel 01564 772038 – www.rimilia.com – enquiries@rimilia.com