Using this connectivity as a foundation, Adobe has been able to drive efficiencies around its AP, AR, tax, payroll and treasury processes. Through the ISO 20022 XML standard, in addition to an enhanced referencing model for its transactions, treasury now receives an acknowledgement within five minutes from the bank that files have been received, providing reassurance that there are no connectivity issues. Rejected or returned files are sent by the bank within 24 hours, speeding up processing and reconciliation.
Moreover, Adobe now receives consolidated paper and electronic collection data in a single host-to-host lockbox transmission which has eliminated hours of manual cash application. This enhanced real-time reporting capability combined with robust receivable management tools and self-service tracking feature is a game-changer for Adobe’s treasury operations.
Best practice and innovation
Adobe’s treasury initiative has been an overwhelming success for the company. Since adopting the ISO 20022 XML standard, treasury has been able to automate between 95% and 98% of AP payment and AR cash application processes. The implementation of this new file transmission method also increased security protocol, utilising tougher data encryption standards and real-time communication.
In the past, Adobe had to use custom generated programmes to run its lockbox engine, but with the implementation of SAP’s Bank Communication Manager (BCM), treasury can now seamlessly connect the native lockbox programme in advance. The BCM provides visibility, transparency and accurate processing. This combined with usage of the J.P. Morgan DME template has eliminated much of the complexity required by customisation, which in turn has reduced IT development time by as much as 60%.
The reduction of excess development saves on costs as well, with less time spent on development and the simplification of day-to-day maintenance made possible by SAP industry best practice.
In addition, by adopting the latest standards, Adobe gains security, scalability, and the ability to take advantage of future technology developments and more easily respond to international mandatory requirements that may be introduced down the road.
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