Processing accounts receivable payments can be a challenging business process. Many organizations have turned to lock box processing in order to reduce time spent sending items to the bank. However, in many cases lock box fees are excessive and the data capture services don't provide accurate or complete information necessary to allow business customers to update the accounting systems. In recent years, Check 21 has gained a lot of attention, with businesses turning to remote deposit scanners to automate the bank deposit. However, this process can be cumbersome with paper checks being routed to multiple people for posting to the account and then scanning for the bank.

Automated systems utilize the latest in capture technology to identify required information on a check and extract it in a format that can be used by the existing accounting system. By using standard document scanners, a business may scan checks and remittance information in a single stream-lined process. This allows the business to post information to the existing accounting system and generate the image cash letter, or Check 21 deposit, in a single pass. Red Eagle Consulting works customers to examine the existing methods and systems to determine whether an automated system would work well and provide a cost benefit to their company.

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Common Questions About Automated Accounts Receivable Processing
How will the system know which customer account to select?	Many times, businesses have thousands of customers in their accounting systems. Data capture software solutions utilize name and address information, phone numbers, or other identifying information, such as account number or invoice number, to select the correct account from the customer database, much the same way an operator would. If no match exists in the system, or if two customer records exist with the same information, the system will present the choice to an operator.
How does the system find the necessary information?	In most cases, formats for checks and remittance documents vary greatly. The systems used to automate accounts receivable processing use a variety of methods to determine which account should be updated. Red Eagle Consulting works with customers to identify the best method for their AR and test the implementations for optimal performance with their remittance documents.
What is an image cash letter?	An image cash letter, or ICL file, is a file generated for electronic deposit to a bank. Many banks accept ICL deposit under the Check 21 standard.
How is the ICL file transmitted to the bank?	There are a number of methods for transmitting ICL files to a bank. The method you choose depends on the options available for your bank. Most banks will have more than one choice, including transmission via ftp, manual upload via a website, etc...
How does an automated accounts receivable system reduce cost over traditional AR processing?	When compared to traditional AR processing, automating accounts receivable processing reduces the handling of paper checks and eliminates physical trips to the bank.
How does an accounts payable processing system reduce the cost over remote deposit capture?	When compared to simple remote deposit capture (RDC), automated accounts receivable processing eliminates the need to have dual processes for posting and bank scanning. It also eliminates need for specialized equipment from the bank.
How does an accounts payable processing system reduce the cost over lockbox processing?	When compared to lockbox fees, bank fees for image cash letter (ICL) deposits tend to be much lower. In addition, by handling the AR posting in-house, businesses often find a reduction in errors, resulting in fewer customer complaints.
Can we use an outsourced scanning company?	If the outsource company is willing to provide appropriate precautions for handling checks, as well as a high-quality image of the front and back of the check, you may choose to continue outsourcing your scanning functions.