Search
 

Can We Build The Perfect Beast?

Technology for STP in payments exists--just not all in one place

By Staff Writer | Updated on June 01, 2005

A process improvement consultant recently asked me if there was a way to truly automate the payment process so that a vendor could be paid using a procedure that is “untouched by human hands.” As in many finance applications today, the answer is yes, with one important caveat: You can’t buy it; you have to build it. While the tools exist, straight through processing (STP)–a concept that came into vogue toward the end of the last century–can only really be achieved by an enterprising treasury willing to commit the resources and know-how (forgive me, Don Henley of the Eagles) to “Build… the Perfect Beast.”

Moving toward STP, the first hurdle for any treasury is accommodating its customers’ various accounting systems. This has become much more scalable, thanks to the evolution of enterprise resource planning (ERP) and other commercially available accounting systems over the past several years. Now, most possess the capability to create electronic data interchange (EDI) payment advices and the means to generate Automated Clearing House (ACH) files that can be sent to the customer’s bank for processing.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

 

Recommended Stories

U.S.-China Audit Agreement Draws Criticism

U.S.-China Audit Agreement Draws Criticism

Jessica Seah |

Although the deal has potential to ease trade tensions, a failure to effectively implement it might actually lead to further damage to the U.S.-China relationship.

Planning Liquidity in Times of Uncertainty

Planning Liquidity in Times of Uncertainty

Tom Hunt & Mariam Lamech |

Responses to the 2022 AFP Liquidity Survey reflect treasurers battening down the hatches as they prepare for an extended period of unpredictability and likely volatility.

Optimizing Cash Requires a Remodel

Optimizing Cash Requires a Remodel

Eric Krell |

As interest rates rise, treasury teams should re-evaluate cash forecasting models to be sure they fully understand the risk associated with a pursuit of higher returns.

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2023 ALM Global, LLC. All Rights Reserved.