Overview
Services and goods suppliers who extend line of credit to their customers and accept post-dated cheques as a promise to pay in future (IOU) need a powerful system to manage the life cycle of this type of IOUs from presentation to the successful collection of the payment and all the events that might happen in between which are typical to this type of operation.
TPLCM is primarily built to help organizations manage their client’s post-dated cheques (PDCs) life cycle part of the overall Accounts Receivables Cycle and accordingly improve their IOU’s Collection Effectiveness Index (CEI). The automation of the process steps and the controls around it improve the efficiency and effectiveness of the organization and accordingly result in enhanced productivity and reduced unit cost of operation in addition to reducing delays, defects and errors which boost the customer experience.
Tiresias Post Dated Cheques Life Cycle Manager (TPLCM) is an end to end Business Platform built over the powerful Tiresias Theatre Technology Platform (3TP) and inherits the entire technology functionalities of 3TP components many of them are unique capabilities that came as a result of the innovative techniques infused in Tiresias technology.
End-to-End Automation – System Processes
TPLCM enables organizations to efficiently manage the pools of physical cheques they store for their due dates and ensure timely presentation, instant management of received payments and bounced cheques.
The system performs in full automation and system controls the full lifecycle and have the following processes configured:
- Accept Post-Dated Cheques in settlement of invoices and set up future dated installment plans
- Receive Post-Dated Cheques to Custody
- Present Post-Dated Cheques for Collections (send to bank) on due Date
- Record Successful Post-Dated Cheques collection (Payment Received)
- Manage Bounced Cheques
- Deliver Bounced Cheques to Client
- Withdraw Post-Dated Cheques from Custody
- Extend Post-Dated Cheques presentation dates(delay collection)
- Replace deposited Post-Dated with other Post-Dated (Customer changing bank for example)
Post Dated Cheques as Accounts Receivables: Measure the Collection Efficiency
TPLCM is out-of-the box configured to measure the collection process efficiency of Post-Dated Cheques by providing a real time calculation of the primary ratios used in monitoring the collection process.
Companies releases the goods or perform the service in reliance of the check writer’s promise to pay at some later date rather than in reliance of the check’s negotiability.
Since postdated cheques in the accounting nature of them is identical to the account receivables (AR is defined as the balance of money due to a company for goods or services delivered or used but not yet paid for by customers), the system uses the accounts receivables below key performance indicators (KPIs) to monitor the overall collection efficiency:
- Days Sales Outstanding (DSO)
- Average Days Delinquent (ADD)
- Collection Effectiveness Index (CEI)
