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Streamlined Sales,Hyper-Minimum Fraud

Profitable Fraud-Free Business with Minimum Cost, too Good to be True?

Fast Moving Consumer Goods and food raw material distribution lines in Indonesia consist of two categories: modern market and traditional market. Both categories have their challenges. For businesses, selling to a modern market means managing their cash flow due to longer payment terms. But, to sell to a traditional market means enterprises have to streamline their operations in order-to-cash and deal with (1.) bad debt caused by manual invoicing processes and (2.) fraud due to high usage of cash instead of digital payment. Two functions are conflicted in dealing with bad debt and fraud: sales and finance. Both play an essential role in order-to-cash.

The Common Ways, Not The Best Practices of Order-to-Cash

The invoicing process will go as follows: Hardcopy invoices will be sent together with the goods. The collector will visit the store on the due date to collect the payment. Using cash, the buyer's payment will be received by a collector. The buyer will receive a payment receipt as proof of payment.  After that, the cash will be handed over to the finance team. The finance team will then perform a reconciliation. They will provide a receipt to the collector as proof that the payment has been settled. The payment amount stated in the buyer and collector receipt shall be the same as the amount received by the finance department. The finance function will keep this flow to be in place.

One of the coconut supplier companies producing coconut oil, milk, and other coconut products is facing a tricky situation. The owner put more emphasis on the sales function to win the market share aggressively. The business runs well continuously until one day, the finance team finds a significant problem: the business runs on a negative margin, caused by bad debt and fraud due to conventional invoicing and payment processes. Both bad debt and fraud contribute up to 5% of the revenue. The owner realizes that he must balance the sales and operations with the usage of technology and digital payment. 


On Handling Bad Debt,

 Most of the company's bad debt comes from (1.) long-due invoices that have not been well processed and are overwritten by other invoices and (2.) partial payment from customers that are not fully paid. Understandably, the finance team might experience delays in doing cash payment reconciliation while the company pushes for more sales. Therefore, the invoices will be overwritten. Adapting digital invoicing and digital payment will match each payment to each invoice individually, whether for full or partial payment. In this way, no invoices will be left forgotten to be paid. provides digital invoices and payments with automatic reconciliation. It can also complement the order-to-cash with automated payment reminders and a simple interface for buyers to list and track their orders, invoices, and payments.


On Handling Fraud

Using cash, the company suffers losses due to buyers using counterfeit money and money theft by cash collectors. The difference in the reconciliation data between the finance and the collector teams indicates fraud. Using digital payment reduces potential fraud since it eliminates the usage of counterfeit money, minimizes operational costs for collection, and enables the money to be received directly to the company’s bank account. provides many payment methods for buyers to ease change management, from conventional order-to-cash to digital ones. Credit card payments are also accepted to enable buyers to get prolonged payment terms from banks. If the buyer is persistent in using cash, reconciliation from the buyer, collector, and finance team can also be streamlined. All of the information regarding money flow will be transparent within authorized functions.

The Best Practices Has Been Written on The Wall: Digitalization

Adapting to, more than 85% of the payment volume of the business is now digitized, leaving the fraud and bad debt ratio at nearly 0%. The business also experiences lower Days Sales Outstanding (DSO) and lower operational costs. Business owners also can balance sales and risk strategically by looking at real-time analytics. 

We believe that each business is unique, along with its complexity. That’s why we built our modular product and complement our solution with experienced business consultants ready to tailor our solution based on your primary needs. Learn more about how can streamline your procure-to-pay and order-to-cash process and book our time now.

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