Magazine article Business Credit

Software Rejuvenates Cash Flow

Magazine article Business Credit

Software Rejuvenates Cash Flow

Article excerpt

Central Products Company, a wholly owned subsidiary of Alco Standard Corp. operating as a division of Paper Corporation of America, manufactures carton sealing tape. Our company has more than 800 active accounts receivable customers and processes about 1,300 checks a month with a value of $10 million.

The sheer volume of transactions keeps three full-time clerks busy at three different locations doing manual posting exclusively. This exacting work, while important, is also tedious and error-prone. When a major consolidation of the credit operation at the Menasha, Wis. facility resulted in all cash receipts descending upon a single individual, we searched for a more efficient, computerized solution.

We were already using a leading software vendor's packaged accounts receivable solution installed on the company's IBM AS/400 B60 computer. The cash application function, however, was not part of the A/Rsystem, hence the need for a separate software package. We found Autoclear, a stand-alone, automated cash application system from QCC, an IBM business partner headquartered in Dedham, Mass.

When we discovered Autoclear, we realized that a "bolt on" to the existing A/R system was the simplest and most effective solution. From the demonstration of Autoclear, it was obvious that this was he answer.

AutoClear allows users to apply receipted bank level payments electronically. As a result, we have been able to increase cash liquidity, upgrade our credit control procedures, and for the first time, match checks received against invoices with the speed and accuracy of a computer-based system.

At CENTRAL Products, AutoClear works through a series of algorithms which ensure the proper application of funds to open items. First, the software looks for the open invoice and applies payment. It then matches the balance with the accounts receivable balance. …

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