In a typical supplier-customer relationship, invoices are recorded in the customer’s GL account, accumulating a net balance due by a specific date each period.
ClearingPool vs. Conventional
When payment is received, it must be matched to unpaid invoices, completing the process. ClearingPool enhances this by using electronic payment requests that facilitate secure and automatic matching, particularly beneficial in complex relationships with large data volumes. Since the supplier’s system generates the payment request, it accurately processes incoming payments along with the request ID.
Paying Customers Using Advanced GL Systems
Before a payment request is initiated, the paying customer typically receives an electronic invoice, which is confirmed and recorded in their GL system. To complete the process, this supplier invoice must be matched with the payment received. The payment request includes all necessary references for automatic matching in the customer’s GL system. This system interfaces with the customer’s bank, allowing for easy retrieval and payment of all requests associated with the customer’s ID, facilitating accurate booking against supplier invoices.
Conventional Invoice and Payment Matching
Conventional payment processing is often time-consuming, costly, and prone to human error. Payments are manually recorded based on daily bank statements and matched against invoices in the customer’s GL account, which reference the supplier’s bank account.
ClearingPool Technology
ClearingPool technology enhances payment processing efficiency and accuracy, particularly in business relationships with high data volumes. By streamlining invoice matching and payment requests, it minimizes manual errors and reduces processing times, leading to significant savings for businesses. This innovative approach allows for automated handling of payment requests, ultimately simplifying financial transactions between suppliers and customers.