Baseball Spring Training, ERAs and Hit RateMarch 23, 2016
By Lisa Ellingwood
So with baseball spring training camp in “full swing,” does your cash application hit rate look more like an ace major league pitcher’s ERA? For you non baseball aficionado’s, what I mean by that is, does your hit rate look low? If it does then consider what your company can do to improve.
Maximizing hit rate means that all of the following conditions apply to your cash application process:
- Knowing the kind of payment (EDI, ACH, wire transfer, RDC, lockbox)
- Knowing the paying customer company
- Knowing the amount being paid
- Knowing the invoices the customer is paying
If your company can apply cash down to the invoice that a specific customer is paying, via Straight Through Processing (STP) and apply the cash the same day, your hit rate will be a “grand slam” to your CFO.
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