B2C businesses unlike other kinds thrive on their direct sales to the customers. They could have a wide customer outreach that may get tampered with the accounting processes due to high-volume data acquisition and reconciliation.
Reconciliation is one of the important sales payment factors that require a lot of attention and clarity. It is also bound to several audit and transaction errors, especially when it comes to companies with a large audience. With a proper solution for analyzing the tally in the sales payment record and transaction record, one can avoid payment errors and revenue leakages due to fraud by rectifying the difference.
Challenges in reconciliation
- Reconciliation in single transaction level
- Fulfilment of audit requirements
- External reconciliation services
- Accounting performance
- Diversity in the payment channels
SAP BRIM and Convergent Mediation to the rescue
SAP BRIM solution is known for its seamless billing and accounting capabilities for subscription services. With the aid of BRIM, one can bring in transparency in the entire transaction process for large volume accounting. This helps to identify the exact transaction records and compare the payment values for an accurate accounting process.
Convergent Mediation helps in filtering out data to assign the proper data format to the billing cycle and thereby reducing the chance for payment errors. Tracing the errors associated with transactions can also be handled prior to the mediation process. It is basically a data enrichment process that could avoid most of the constraints that could occur in the billing cycle.
BRIM and CM for reconciliation
- Reconciliation for unknown POS transactions that happens through multiple non-cash payment methods.
- Relevant audit requirements to complement all the transactions and payments.
- Error traceability and handling.
Reconciliation process flow
When an external point of sales transaction occurs, convergent mediation acquires the data, acquires the sales data associated with the account, and processes the data enrichment on both. On completion of the acquisition and enrichment, the data is transferred for reconciliation where the comparison of sales record and transaction record takes place. If an error is present in the transaction, the transaction data is sent to the Error Correction System and is checked for matching the audit requirements. If the transaction data doesn’t show any error, it is sent to the billing segment for accurate billing, invoicing, and accounting.
There are two ways the reconciliation process could be carried out– via Convergent Mediation and Convergent Invoicing. Both ways help analyze errors in the transaction data, especially in the case of unknown customers.
What are the key takeaways?
- This flexible SAP approach is to identify errors in unknown payment reconciliations.
- This approach in place allocates complete compliance with the audit requirements
- The payment reconciliation framework reduces the risk of revenue leakage due to fraud involvement.
- Quick time to market with feasible Order-to-Cash
- This architecture comprising SAP BRIM and Convergent Mediation facilitates an E2E error handling and tracing possibilities