CBI-AR - Accounts Receivable Module
Overview
The beauty of CBI is in its simplicity combined with its flexibility to manage cores multiple ways within the same organization. CBI is all about "multi-level rules-based" core management. One rule does not fit all, and CBI provides the tools to apply the right rules to best suit each channel.
CBI is fundamentally different from most solutions in that it provides extensible functionality developed to harness the power of the underlying technology: the Microsoft® SQLServer RDBMS. The fundamental architecture provides unparalleled support for Enterprise Application Integration (EAI) to existing enterprise business systems, as well as Business-to-Business (B2B) system communication between customers and dealers. This architecture extends and enhances current enterprise software.
All bank processing is automated, based either on receipt or invoice import activity through extensive use of database condition events and procedures. CBI automatically produces the correct result based on the event-specific business rule setting. The following information expands on the settings and rules that can be selected, and how they work together to optimize core management and provide the highest possible contribution to the bottom line success of an organization.
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Master Tables
CBI includes programs to manually maintain all Master Table records. The hierarchical nature of these and the processing Engine Tables, are illustrated in the graphic below.
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Product and Customer Master Tables
These tables can be automatically created and updated from Host System file exports to CBI import tables and routines (see the CBI Technology Overview for more information on imports). These tables provide for complete definition of all bank-appropriate customer and product relationships and data.
Processing Engine Tables
Key to the streamlined function of CBI, is selecting the proper settings in several areas: the Billing, and Application Rules Engines. Within each is a multi-dimensional hierarchy designed to support the establishment of rules at the highest appropriate level so that the user can easily review and manage lower level items on an exception basis. CBI goes far beyond normal system-wide rules by supporting relational combinations of the product and customer hierarchies, allowing even the most complex relationships to be easily defined.
Core Bank processing can be fully automated except for transactions that are one-time or special circumstances. All of the examples in this section explain how to define a particular rules-exception scenario. The programs provide powerful look-up capabilities at all defined levels against the entire database for initial rules set-up, and also look-ups that drill down the exception hierarchy for ease of management review.
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Billing Options Rules Engine - This rules engine controls how CBI sets and reacts, upon creation of records (either through import or manual entry), to the billing/credit policy for customer track and bank transactions. The Core Billing Options hierarchical tables establish the settings.
The Billing Flags control:
- Generation of financial notices (CBI Core Billing/Credit Advisories);
- Expiration of right to apply returns against originating sale (CBI Return Application);
- Expiration of right to apply over returns against new sale (CBI Invoice Application).
These settings are multi-dimensional in that a particular Billing Flag may preclude or include the use of other parameters, as noted below:
- Billed with Invoice - Marks the track record as billed (on the original invoice) and overrides the use of Defer Days and Eligibility Expire Days. Returns applied against this record type result in credits for the return value.
- Immediate Generation - Produces and A/R advisory for the core invoice upon creation of the track (invoice) record, marks the record as billed, and also overrides the use of Defer Days and Eligibility Expire Days.
Core returns applied against the above records types result in credits for the return value.
- Defer Billing - Creates a billing advisory to trigger the core return or payment, after the specified period of Defer Days from the track record date.
- No Bill until Expiration - Creates a billing advisory upon reaching the Eligibility Expire Days from the track record date.
Core returns applied against these record types, prior to billing, result in charge-back billings for the deduction value; and after billing, credits for the return value.
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Eligibility Expire Days - Removes the right to receive return credit against a track record upon reaching the specified number of days from the invoice date. Returns are then banked for application against future sales or possible bank purchase credit.
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Credit (Bank) Expire Days - Removes the customer's right to purchase against banked quantities upon reaching the specified number of days from the return date. This results in a credit or lost opportunity, depending on company policy.
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Core Valuation Rules Methods - CBI offers two distinctly different methods - Unit and Value Based - to designate how the core return credit value is processed and calculated during Core Acceptance Processing.
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Application Rules Engines - The "Application" rules settings support the definition of the Application Method. Theses rules influence Acceptance Processing and Application Policy defining the scope of track records that are available to apply returns against. To recognize the need to "mix and match" within an organization, the valuation method may be defined at the Product Line, Part Group, and Customer Group, as well as the combination settings of Customer Group/Product Line, and Customer Group/Part Group levels.
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Customer and Product Application Rules - These processing rules go well beyond the traditional "like for like" application of the specific return customer/part or part group combination, by use of two sets of rules to define how that specific customer returning that core should be handled (or applied), once accepted. The Application Processing Rules for the specific return customer and part are always derived from each hierarchy's next higher defined level. The Application Rules Tables in CBI allows the user to easily view and change application rules by virtually any combination of customers and products in the hierarchy.
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Explicit Application - Supports the requirement to match specific unit serial or document numbers against return eligibility records prior to issuing credit. At acceptance, serial number validation can be enforced or a list of return eligibilities can be presented for manual selection purposes.
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Reject Codes - Codes can be set up at the Core, Core Group, and/or Product Line levels to indicate the various types of standard defects. They can be set up as "dollars" or "percentages" (up to 100% of value), which reduce the customer's credit for the cores. The power behind this Rules Engine is that the global setting, along with the "and/or" definition, supports rapid classification and mass changes to Reject Conditions and Deductions. During acceptance processing, only the applicable codes are automatically presented to the inspector for the specific part being inspected.
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Graded Deductions - An alternative to Reject Codes is the use of return quality grade prices, "A" through"D", where "A" equals 100% of the value, "B" & "C" a lesser amount, and "D" equal to a reject. A special price is provided to allow issuance of extra credit value when warranted. These can be set up at the Core Group and overridden at the core level. A graded receipt screen allows quantity entries in "A-D" buckets rather than identifying a quantity with its defects, as in Reject Code processing.
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Activity-Based Tracking Tables
At the heart of CBI are Activity-based Master Tables which are initially created upon import of legacy core bank data and updated automatically based on Host System sales/return credit imports, receipt/acceptance processing, and record maintenance. Supporting tables include both the data in the CBI Master Tables and processing rules established in the CBI Rules Engine Tables.
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Core System Advanced Maintenance
CBI provides a powerful toolkit of programs for use by Core Managers to handle special situations. They also allow Customer Service personnel to rapidly and accurately respond to customer inquiries. Some of the functions available in Advanced Maintenance are the ability to add/edit track records, add/edit returned records, generate advisories, import invoices, import returns, auto-apply, and a variety of viewing functions.
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Core Receipt Processing
The design of CBI provides for fast entry of shipped and receipt transactions by keeping data requirements to a minimum. Return core and reman part numbers can be directly entered, or selected from look-ups. No integration with the customer core bank records occurs at this time. Each subsequent step builds on the prior, including all of its capabilities. This adds flexibility in that the user is able to select appropriate processes to match situational, or customer, requirements. Receipts may be recorded in any of the following ways:
Receive Cores - Receiving records the physical receipt of either in-transit cores, or direct receipt processing, which supports shipped and receipt quantity entry in one step. Look-ups are provided to easily verify if in-transit shipments exist that once selected, with receipt quantities entered, upgrade the shipment to "received" status. Deviations in shipped versus received quantities and items can be recorded. This step may be skipped if receipt and acceptance is done in one step, as the "Accept Cores" program supports the same features.
Accept Cores - This is where the power is added to the return process as it also supports the inspection, disposition, and acceptance of cores that automatically triggers the Application process. In-transit and Received Cores can be accepted at full value, receive partial credit due to defects, or rejected with no credit (see Reject Codes Master Table). CBI performs the difficult and laborious task of properly applying (crediting) returned cores against customer bank records, automatically as each return is accepted. Application, with the exception of explicit or direct application, is performed on a FIFO basis. Return Imports are automatically accepted at 100% of the credit value and similar except that no inventory export records are created.
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Future CBI Modules
The initial CBI product will be expanded to include optional, additional functionality. These are focused on expanding CBI to satisfy total supply-chain requirements.
- CBI-Supplier - The supply-side counterpart to CBI to integrate ERP purchasing/AP functions in support of the purchase of remanufactured items.
- Inventory Management - Will provide core warehouse management support to the receiving and acceptance functions.
- Dealer Inventory - Will support stocking reman items at dealers/distributors without core billings until notification of sale to end-customer.
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Summary
CBI dramatically improves the value proposition of Core Banking to any larger scale enterprise that deals with the production and/or sale of remanufactured products. CBI is more than an Accounting System as it contains valuable aspects that can turn into a strategic weapon against the competition. It embodies remanufacturing specific functionality to support Customer Relationship Management, as well as other important functions not normally associated with Core Banking, including: Business (Sales) Policy, Product Life Cycle Management, and Core Return Supply Planning. These allow an enterprise to work in a unified fashion toward maximizing results in this arena.
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