Welcome to the SAP-Centric Financials blog! As we embark on launching our inaugural program next February, we’re excited to also launch our blog series, featuring a number of industry thought leaders offering insight and advice on some of today’s most pressing finance topics.
Have you considered the type of payment received and subsequent cash application process could either increase or decrease your DSO? How is this possible?
Historically, checks were used so companies to increase float by several days due to mail processing time. Checks continue to be used for practical reasons often due to remittance limitations on electronic formats. ACH, wires, and credit card payments all have their own remittance nuances. The classical banking system was optimized for a system that utilized checks heavily. Its transformation to electronic payment formats is underway.
