Faced with a $580K write off of multiple A/R invoice balances, I developed and managed a Microsoft Access database to reconcile more than 15,000 individual invoices over a 6 month audit period. The results were outstanding. 99.7% of the outstanding A/R was collected. DSO dropped from 48 to 2. Average weekly time spent on managing invoicing and payments dropped from an average of 4 weeks to less than 30 minutes. All client KPI measurements were exceeded for accuracy, speed, and quality. The database has now grown to more than 60,000 individual invoice files, and just as many payment records. Total number of records in this database is more than 120,000. If you are facing a similar delima - how to you manage or reconcile large data files - I can create customized Access solutions for your team, including a complete GUI interface.

1. Accounts Receivable Collection

2. Background
• Client required invoices to be submitted according to strict
data definitions using CSV file formatting.
• Average number of invoice lines submitted each week was
350.
• Each line of the file was considered to be a separate invoice
and required a separate invoice number.
• Entire files or specific invoice lines could fail electronic
submission based on non-compliance to data definitions.
• Client would inform when either occurrence took place. For
entire files, the file would be corrected and resubmitted for
processing. For line errors, the specific invoice(s) would need
to be researched, corrected, and resubmitted.
• Payment terms were net 60.

3. Situation
• In September of 2011, the financial controller resigned his
position with 6 weeks notice.
• The controller was the only individual who understood the
entire invoicing and payment process.
• A new controller was hired from within and was transferred to
the location. The new controller was highly recommended.
• The new controller worked with the outgoing controller for a 4-
week period. The training and knowledge transfer was being
monitored by the General Manager.
• Within 5 weeks, we started to receive comments from our
client that our error rate for file submissions was escalating.
• Within 12 weeks, the account was beginning to receive
increased corporate scrutiny for outstanding accounts
receivable balances.
• An internal audit was conducted and it was determined that at
least $580,000 of invoices were unaccounted for and had not
been submitted to the client for payment.

4. Findings
• The controller didn’t understand the billing process and did not
seek assistance.
• The controller was applying EFT payments to the oldest
invoices versus the correct invoice.
• A/R Aging reports were no longer valid.
• It was impossible to determine which invoices had been billed
and paid vs. what had not been invoiced.
• Entire CSV invoice files had failed electronic submission and
had not been resubmitted.
• Multiple lines of CSV invoice files contained data that resulted
in line submission failures. Failure rates had climbed to as high
as 18% from an average of 3%. Invoice lines were not
resubmitted.
• The corporation was prepared to write-off outstanding invoice
balances.
• Client was not aware of the extent of the problem
• DSO had risen to as high 48.

5. Reconciliation Process
• 4 relational tables, multiple queries, and multiple report
formats were created in a Microsoft Access database.
• Invoice and payment files were exported from their native
formats and were imported into the reconciliation database.
• Files included client EFT detail payment files (PDF to Excel),
client EFT summary files (PDF to Excel), corporate invoice
detail files (Excel), and corporate invoice summary files (Hard
Copy Originals).
• Invoice detail files were imported and matched against
corporate summary files. Variances were researched and
reconciled.
• Client EFT detail payment files, once in Excel file format, were
imported into the database.
• Invoice numbers were assigned Primary Keys. This allowed for
invoices to be matched against payments.
• All unmatched invoices were individually reviewed against 3M
payments systems and resubmitted.

6. Reconciliation Process
Multiple data fields created and linked to manage submission, payments,
submission failures, aging, adjustments and bad debt.
Allowed for complete reconciliation of invoicing submission and payments. In
this sample, more than 55,000 invoices were being reconciled.

7. Reconciliation Process
Multiple reports were developed to manage invoice payment details
Multiple SQL queries created to mine and update data
Notice on the invoice below that it took 7 different payments over a 2 month
period to completely pay just one invoice balance.
7 different
payments
over 3
months to
pay 1
invoice in
total

8. Reconciliation Process
Reconciliation of import records from the EFT file.
EFT File
Database

9. Reconciliation Process
Instructions were e-mailed to ARAMARK’s Cash & Banking team for how to apply
the EFT payments

10. Reconciliation Process
Invoices that failed billing submission were researched. A history was log was
maintained for all invoices requiring multiple submissions.

11. Reconciliation Process
An invoice aging report was created to allow for individual invoice lines to be
closely monitored throughout the billing and payment cycle

12. Results
• Of the original $580,000, 99.7% was collected
• Re-engineered the process from an intensive manual
billing and reconciliation process to a highly efficient
electronic system
• Weekly processing time dropped from an average of 4
hours to less than30 minutes
• Duplicate invoicing dropped to 0
• DSO fell from 48 to 2
• Billing error rates dropped from 18% to 1.8%
• 100% of invoices were submitted within the defined client
billing requirements
• No invoices were carried into FY 2012 or FY 2013