CRPA CRPA Technology & Automation in Accounts Receivable

Question 1

What is the primary benefit of implementing Electronic Invoice Presentment and Payment (EIPP) in a receivables department?

Accepted Answer

It automates invoice delivery and enables customers to pay electronically, reducing DSO

Answer

It eliminates the need for a credit policy

Answer

It automatically writes off uncollectable receivables

Answer

It replaces the need for a collections team entirely

Question 2

In an ERP system, what does 'cash application' refer to in the accounts receivable process?

Accepted Answer

Matching incoming payments to the correct open invoices in the AR ledger

Answer

Approving new customer credit applications

Answer

Generating customer statements automatically

Answer

Forecasting future cash receipts based on historical data

Question 3

Which technology is most commonly used to automate the matching of customer remittance advice to open invoices?

Accepted Answer

Optical Character Recognition (OCR) combined with machine learning algorithms

Answer

Manual spreadsheet reconciliation

Answer

Standard relational database queries only

Answer

Manual bank statement review

Question 4

What is a key advantage of using a cloud-based AR automation platform over an on-premise system?

Accepted Answer

Cloud platforms offer faster deployment, automatic updates, and remote accessibility

Answer

Cloud platforms do not require any user training

Answer

Cloud platforms eliminate all cybersecurity risks

Answer

Cloud platforms do not charge subscription fees

Question 5

A company wants to reduce unapplied cash on its books. Which technology solution best addresses this?

Accepted Answer

Deploying automated cash application software with remittance capture capabilities

Answer

Implementing a new general ledger system

Answer

Increasing the AR team headcount

Answer

Adopting a paper-based invoicing process

Question 6

What does 'straight-through processing' (STP) mean in the context of AR automation?

Accepted Answer

Completing the entire invoice-to-cash cycle without manual intervention

Answer

Processing all invoices through a single vendor

Answer

Sending invoices directly to customers without review

Answer

Applying all payments to the oldest invoice first