HSBC introduces automatic reconciliation for FMCG clients
29 November 2012 | 2503 views | 0
HSBC Global Payments and Cash Management today announced the launch of its new Automatic Reconciliation Solution specifically designed for Fast Moving Consumer Goods (FMCG) clients in Asia Pacific.
The new solution, which is part of the Integrated Receivables Solutions (IRS) product suite, will allow HSBC's FMCG clients to transform their Accounts Receivable cycle by automating the reconciliation of incoming payment advice details against outstanding invoice records, thus speeding up the application of their cash received.
John Laurens, Head of Global Payments and Cash Management, Asia Pacific, said: "By identifying the main challenges facing the FMCG sector, we have been able to successfully develop an innovative solution that specifically addresses their needs. 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.
HSBC's FMCG Automatic Reconciliation 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 Accounts Receivable cycle faster and with better control, while eliminating manual processes and reducing operational costs and errors.
Laurens continued: "As part of our integrated product suite, this solution is another example of how we make it easier for our clients to run their businesses in Asia, and evidences our commitment to continued innovation in the cash management space across the region."
Available across 17 markets in in Asia Pacific, the solution provides HSBC's clients with an opportunity to standardise and centralise their Accounts Receivables processes across the region. HSBC plans to extend this solution beyond FMCG to other industries in due course.