Global Payments and Cash Management has launched an automatic reconciliation solution specifically designed for fast-moving consumer goods (FMCG) clients in Asia-Pacific.
The bank said that the new solution, part of the integrated receivables solutions (IRS) product suite, will allow HSBC’s FMCG clients to transform their accounts receivable (A/R) cycle by automating the reconciliation of incoming payment advice details against outstanding invoice records, thus speeding up the application of their cash received.
“By identifying the main challenges facing the FMCG sector, we have been able to successfully develop an innovative solution that specifically addresses their needs,” said John Laurens, HSBC’s head of global payments and cash management, Asia Pacific. “With this solution in place, our FMCG clients will garner significant working capital benefits, as well as the ability to better manage their own credit risks thus enhancing business opportunities with their counterparties.”
FMCG companies generally receive bulk payments from their customers for multiple invoices. To provide information on what invoices are being paid, remittance advices in varying file formats are sent by customers. Because of the numerous and complex remittance advice formats and payment types, automating this reconciliation process entails significant capital and IT investment. Hence, most corporates have resorted to a manual reconciliation process, which is both inefficient and time consuming.
The new solution automates the reconciliation of payments and remittance details by intelligently matching the payments credited against the corresponding payments advices. This unlocks the cash trapped in the A/R cycle faster and with better control, while eliminating manual processes and reducing operational costs and errors.
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