How to Transform yourAccounts Payable Department  into a Revenue Generator
Comdata is a leading provider of innovative,value-added payment and information solutions    40+ years experience    Pro...
Treasury Management     Voice of the Customer         Reduce cost and streamline business processes         Contribute t...
Today’s Payment Landscape    “Manual, paper-based accounts     payable departments are     eroding the bottom line of     ...
Top Factors Driving Electronic Payments                                             5                     © 2010 Ceridian ...
An Electronic Payment Application                                                           for Every Situation           ...
Reduce Costs            Eliminates cost of check processing, averaging $5.14*               Mitigate check fraud and cost ...
Electronic Payment Delivery                                                                      • It is linked to a singl...
Virtual MasterCard Process for AP                                       The Vendor is paid with                           ...
Traditional AP Check vs. Virtual Payment Timeline                                                               INVOICE DU...
11© 2010 Ceridian Corporation. All rights reserved.
Vendor Acceptance• Over 8 million vendors in the U.S. accept MasterCard• Here are some examples of vendors our customers a...
Credit Card Acceptance     The Merchant Value Equation            Customer                                                ...
Four Pillars of Vendor Enrollment                    Executive Sponsorship         Internal   Mass Vendor                 ...
Case Study: Health First              Not-for-profit hospitals in Florida              Four facilities (900 beds)       ...
Case Study    Health First  68% Transactions less than $5,000.00  86% Spend is greater than $5,000.00                     ...
Case Study: Kinder Morgan• Largest energy  storage and pipeline  transportation  company• NYSE: KMP and KMR• 8,000 employe...
Case Study               Avg. Cost Per Check                                                 $5.14               Virtual C...
Keys to Success•   Vendor enrollment defined and continuously executed•   Employees promote program as preferred payment m...
Summary Delivering Value in Corporate Payments                                                 20                         ...
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Comdata

  1. 1. How to Transform yourAccounts Payable Department into a Revenue Generator
  2. 2. Comdata is a leading provider of innovative,value-added payment and information solutions  40+ years experience  Productivity improvement, cost reduction and expense management  A One-Card Solution for purchasing, travel, fleet, per diem and payables disbursements  Provide strategy, implementation and support services 2 © 2010 Ceridian Corporation. All rights reserved.
  3. 3. Treasury Management Voice of the Customer  Reduce cost and streamline business processes  Contribute to revenue development  Mitigate risk and simplify accounting processes Disbursements Management Corporate Fleet Purchasing Travel Payroll, Per diem and Incentive 3 © 2010 Ceridian Corporation. All rights reserved.3
  4. 4. Today’s Payment Landscape “Manual, paper-based accounts payable departments are eroding the bottom line of large and mid-market enterprises by an order of millions of dollars each year….and the stage is set for a major financial makeover.” 4 © 2010 Ceridian Corporation. All rights reserved.4
  5. 5. Top Factors Driving Electronic Payments 5 © 2010 Ceridian Corporation. All rights reserved.
  6. 6. An Electronic Payment Application for Every Situation 6 © 2010 Ceridian Corporation. All rights reserved.
  7. 7. Reduce Costs Eliminates cost of check processing, averaging $5.14* Mitigate check fraud and cost of positive payGenerate monthly revenue on vendor payments Ex: $3.0M monthly volume @ 1.50% = $45,000 Paid monthly on actual volume Easily implemented Integrates as another payment type in your AP application Vendor enrollment support with worldwide acceptance Eliminate 1099 Reporting IRC Section 6050W – Effective January 1, 2011Card-based vendor payments – Merchant acquirers responsible for reporting 7 © 2010 Ceridian Corporation. All rights reserved.
  8. 8. Electronic Payment Delivery • It is linked to a single vendor payment with a remittance advice • A Virtual Card is a unique 16 digit MasterCard account number • The MasterCard number is issued for a specific dollar amount • Accepted by millions of suppliers worldwide 8 © 2010 Ceridian Corporation. All rights reserved.
  9. 9. Virtual MasterCard Process for AP The Vendor is paid with the Virtual Card The merchant authorizesComdata distributes and MasterCard transaction basedreturns a Virtual upon pre-defined parametersMasterCard account – date, time, amount.number for each vendor Vendorpayment processed.Example: #1234 4321 3567 8235 Reconciliation Process Expiration 04/2005 CV2 345 Invoice file from Comdata containing all merchant processed transactions Your payables disbursement file contains consolidated supplier invoices,Company submits amounts anda Payables associatedDisbursement File MasterCard accountfrom ERP to number(s). A GL clearing account isComdata assigned to all Unprocessed transactions merchant transactions Customer 9 © 2010 Ceridian Corporation. All rights reserved.
  10. 10. Traditional AP Check vs. Virtual Payment Timeline INVOICE DUE DATE Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7 AP process Check clearsTradition run - Check is Check Check and funds Check in Check in Check being al AP printed, received by deposited debited from transit transit processed Check stuffed and vendor by vendor Customer mailed Bank Account AP process run - File Comdata InvoiceComdata sent to Comdata initiates total is Manual prework eliminated Comdata - Payment in Payment is invoices ACH debitedMasterCa (check printing, stuffing, mailing time) Vendor runs Electronic process with settled with Customer Debit to fromrd Virtual Payment may be initiated on invoice payment remittance MasterCard MasterCard for settled collect CustomerPayment due date sent and payments invoice Bank received by total Account vendor Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7  With Comdata MasterCard Virtual Payment, our Customers:  Enjoy the same float as a traditional AP check (est. 5 to 7 days)  Earn a cash monthly rebate  May initiate payment on the invoice due date  Eliminate the manual prework and reconciliation associated with checks 10 © 2010 Ceridian Corporation. All rights reserved.
  11. 11. 11© 2010 Ceridian Corporation. All rights reserved.
  12. 12. Vendor Acceptance• Over 8 million vendors in the U.S. accept MasterCard• Here are some examples of vendors our customers are paying today: OFFICE SUPPLIES UNIFORMS ADVERTISING • Office Depot • Aramark • Yellow Pages • Office Max • Cintas • Lamar Outdoor Advertising • Staples • Unifirst • Google • Boise Cascade • Penn Emblem • Clear Channel SHIPPING PAPER / PRINTING SOFTWARE / SYSTEMS • FedEx • International Paper • Microsoft • UPS • Unisource • Oracle • USPS • Xerox • Intuit • Pitney Bowes • Kinko’s • Apple TELECOMMUNICATIONS LABOR / STAFFING VARIOUS RETAIL • Verizon • Adecco • Walmart • Sprint • Spherion • Target • AT&T • Kelly Services • Home Depot / Lowes • Qwest • Randstad • Costco 12 © 2010 Ceridian Corporation. All rights reserved.
  13. 13. Credit Card Acceptance The Merchant Value Equation Customer Supplier Rebate (1.50%) card acceptance (2.45% on average) Comdata (0.95%) Value of Acceptance • Increased sales from larger base of potential customers • Electronic payments eliminate check fraud and mailing delays • Lower collection cost and bad debt elimination • Customer loyalty and risk mitigation 13 © 2010 Ceridian Corporation. All rights reserved.13
  14. 14. Four Pillars of Vendor Enrollment Executive Sponsorship Internal Mass Vendor Joint Enrollment Processes Contact Strategic Results Training Mailings Calls Set goals New Vendors Check New Pay Reporting Purchasing Stuffers Method Rebate RFP Emails Terms Process Contracts Website Discounts Improvement Contests Faxes Contracts Incentives Check Runs Calling Proprietary Campaign Strategic Sourcing 14 © 2010 Ceridian Corporation. All rights reserved.
  15. 15. Case Study: Health First  Not-for-profit hospitals in Florida  Four facilities (900 beds)  Shared-Services Group  PeopleSoft ERP Avg. Cost Per Check ($5.14) $5.14 Virtual cards/ Nov 09’- March 10’ 3758 Transaction $/Nov 09’- March 10’ $21,145,177 Check Elimination Savings $19,316 *Rebate (1.40%) $296,032 Total 5 Month Return $315,348 * Example only - based upon billing and payment terms 15 © 2010 Ceridian Corporation. All rights reserved.
  16. 16. Case Study Health First 68% Transactions less than $5,000.00 86% Spend is greater than $5,000.00 16 © 2010 Ceridian Corporation. All rights reserved.
  17. 17. Case Study: Kinder Morgan• Largest energy storage and pipeline transportation company• NYSE: KMP and KMR• 8,000 employees 17 © 2010 Ceridian Corporation. All rights reserved.
  18. 18. Case Study Avg. Cost Per Check $5.14 Virtual Cards / 8 months 31,398 Check Elimination Savings $161,385 Transaction $ / 8 months $72,561,793 *Rebate (1.60%) $1,160,988 Average transaction size $2,282 Total 8 Month Return $1,322,373 *Example only – based upon billing and payment terms 18 © 2010 Ceridian Corporation. All rights reserved.
  19. 19. Keys to Success• Vendor enrollment defined and continuously executed• Employees promote program as preferred payment method• Reduced check processing from 3 days to 1 day per week• Program settlements process daily with simple file transfer 81% Trx < $5K 62% Spend 19 > $10K © 2010 Ceridian Corporation. All rights reserved.
  20. 20. Summary Delivering Value in Corporate Payments 20 © 2010 Ceridian Corporation. All rights reserved.

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