Ledger Analytics

Companies buy products and services from vendors and sell their products and services to customers. This purchase and sale life cycle is divided in two parts:

Accounts payable - Payments to vendors

  • Companies create purchase order PO
  • Receive goods or services
  • Verifies invoices and makes payment to vendor

Accounts Receivables - Receive payments from customers or vendors

  • Create sales order
  • Deliver goods or services
  • Create billing invoice
  • Receive payments from buyer

Companies have automated systems to do order entry and manage purchase orders. They create outgoing invoices and manage incoming invoices. These systems store purchase and sales transactions in payables (AP) and receivables (AR) systems.

Financial Reporting

Accounting department integrate transactions from AP and AR systems into General Ledger or sub ledgers with vendor accounts. At end of the financial month, quarter or year all posted transactions are validated and financial statements are generated.

Insight Lake Ledger Analytics Solution

AP, AR and GL data contain any company's core business information and accounting state. All financial decisions, reporting depend on these systems and data. Ledger Analytics solution allows companies to create a central repository using Big Data and store accounting transactions from AP, AR and GL system and master data from company to provide insights to accounting, finance and risk departments so they can understand data validity, trends, gaps and risk clearly.

Accounts Receivables

Companies manage their working capital and revenues through AR transactions.

Ledger Analytics solution enables executives and receivables department to gain insight to improve the process, detect and manage clients risks, improve collections and reduce days sales outstanding.

Receivables Dashboards

Following dashboards are provided to deliver receivables insight

  • Number of invoices sent, outstanding, disputed
  • Number of invoices in collection
  • Receivable amounts aging distribution and their performance over time
  • Invoices paid on time or late
  • Top customers - on time, late, based on amount, disputes, collections
  • Geo distribution
  • Currency distribution
  • Product/service distribution
  • Cash conversion cycle performance
  • Customer credit analysis
  • Cash receipt forecasting
  • Prediction of customer default or write off
  • Realization trend of future receivables
  • Cash to cash cycle time trend
  • Days sales outstanding trend

Receivable Models

Scenario analysis and predication models enable AP teams to:

  • Manage discounts properly for cash flow
  • Manage credit risk
  • Predict liquidity

Accounts Payable Analytics

Accounts payables department has goals to pay only legitimate invoices and make sure no fraud or in-consistencies involved. They try to keep the control on cash flow and improve vendor relationships.

They validate following information before creating new invoice record.

  • What item or service was ordered & received
  • Line item costs, totals and terms

AP department setup internal controls to protect company by making sure all vendor invoices are accounted for.
Ledger Analytics solution provides following dashboards/reports to improve Accounts Payables process to reduce liabilities, improve cash management and deliver deep insights.
Ledger Analytics allows monitoring of AP process flows to improve operations.

Payables Dashboards

Following dashboards are provided to deliver payables insight

  • Total number of invoice and amount due and their year over year or quarter over quarter comparison
  • Top vendors with their classifications, amounts, penalties etc
  • Trend analysis and forecasting of due payments
  • Number of not reconciled line items and their total value
  • GRNI analytics - allows analysis of goods received not invoiced accounts, including GRNI reconciliation
  • Performance metrics comparison yoy
  • Number of accounts payables disputed, total amount disputed
  • Number of accounts payables due, amount due
  • Average time to pay - due, overdue or disputed invoices
  • Average value - paid, overdue
  • Days payable outstanding
  • Days sales outstanding
  • Current and future position to pay debt obligation
  • Trend of on time vs delayed payments
  • Trend and summary of loss of discount
  • AP turn over ratio trend - goal is to optimize
  • Cash conversion cycle trend - goal is to reduce
  • Payment channels

Payables Invoice Dashboard

  • Number of invoices received on time vs delayed
  • Average number of line items
  • Invoices processed
  • Average time to process invoices

Cash Flow Analysis

Ledger Analytics Solution allows companies to look at their AP and AR systems and understand how cash flow is operating. They can look at the outgoing, incoming cash and see forecasted trends to manage cash at hand. Following dashboards can be used to manage cash flow:

  • Cash outflow trend and forecasts from AP
  • Cash outflow assessment based on pre or post due date
  • Cash inflow trend and forecasts from AR