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Cost-effective improvements in receivables often cross the invisible line that exists between the accounting and control functions and treasury. As a result, accounting department managers need to cast a wide net when looking for improvements-including those found in receivables processing, AIR software and pricing of bank A/R services.
Bank A/R Services Pricing
To help our readers develop this broader perspective on cash flow, we provide the associated table. (See page 4.) This shows prices paid, list prices, discount availability, discount depth, and the effects of location on pricing for seven bank lockbox services. These include the basicswholesale and retail lockbox maintenance-as well the cost for various per-item charges.
In general, companies that pay for these peritem charges are having their banks capture check and invoice information and then transmit this into accounting and treasury. Interestingly, CFOs and controllers in the nineties usually said that this collection of information about customer payments, not the accelerated collection of cash, was the greatest value associated with lockbox services.
But now, more controllers may be grateful for the core function of lockboxes. This is the, diversion of incoming payments from a receiving corporation...