Practus’ enabled the pharmaceutical company to train its finance team and identify a list of issues leading to differences in account receivables.
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About The Company
Pharma Latin is one of the leading global pharmaceutical companies which researches, develops, manufactures, and markets human and veterinary pharmaceuticals products. The company globally does the revenue of 16 billion with an India revenue of $130 million. The company has 16 CFA Locations and 1 CSA.
- The company had ‘Medico’ an IT system for Order to Cash (O2C). Microsoft AX as the ERP. The O2C system and the ERP are not integrated.
- Invoicing, Debit notes/Credit notes are entered in Medico, credit management is done through Medico.
- India CFO needed Practus’ s support in reconciling the AR balances digging into data from Medico and ERP of past six years.
- Meeting CFA to understand, discuss and recommend solutions to clear the un-reconciled open items.
- Practus approach was entailed identifying customer-wise differences as of 31st March 2018 between Microsoft AX and Medico.
- Reconciling individual customers in both systems was taken up for the period FY2012 to FY2018.
- In case of differences arising due to collections, cross-checked with bank statements.
- The number of transactions totaling more than sixty thousand were checked.
- Supporting in the recovery of the overdue amount from customer’s.
- Presenting assessment report in two weeks highlighting individual customer-wise gap totaling to $2.4 million between Medico and Microsoft AX.
- The identified list of issues leading to the difference in accounts receivable.
- Transaction wise rectification of $2.4 million gap along with reason was provided for each customer.
- Impact on Profit & loss account due to reconciliation.
- Post reconciling, institute, and trained finance team.