Accountants/Credit/Treasury
One customer had checks coming into the lock box and Treasury did not have a way to tie the checks to transactions. SolArc Natural Gas helped them track daily receivables cash flow. In the first month, the company found 12% of receivables were unpaid by the due date. They immediately pursued those payments to reduce working capital requirements.
Reports show buyer, contract, commodity, and dollar amount by due date. Now the CFO knows how much to expect on any given day and immediately identifies unpaid amounts to investigate.
Bonus: The report also allows the accruals department to compare monthly weighted average prices for gas, crude, and liquids as a cross check for reasonableness and planning.
“For the first time we know how much cash to expect on which days”, stated the CFO. “Now we know which receivables to immediately investigate, and Treasury has a better handle on daily working capital requirements so they don’t over-borrow.”
