Most accounts payable departments are cost centers, but Wake Forest University has transformed its department into a revenue generator.
The university is using PayNetExchange from Ellucian, a cloud-based service that provides outsourced check printing and distribution, ACH electronic remittance, and virtual card (v-card) processing for vendor invoice payments. Within four months of using the solution, Wake Forest University cut its check processing costs in half and earned $14,785 in rebates.
“For the first time at Wake Forest University, we transformed accounts payable into a revenue generator rather than just a cost center,” says Allison M. Belton, director, accounts payable.
Before, the department executed about 900 paper-based checks each week for suppliers. To get started with electronic payments, Wake Forest supplied PayNetExchange with supplier data and payment history. PayNetExchange then sent the university’s suppliers a letter explaining the new payment options and process. Now when invoices come in to the finance division, they are entered into Banner Finance as they were in the past. After running the usual check process, the file is sent to PayNetExchange where it is uploaded and payments are executed according to the supplier’s preference, either v-card, ACH, or check, based on the university’s defined payment strategy.
Now the clerical work is in the hands of PayNetExchange, while the savings and rebates remain with the university. That is a solid payoff for an implementation that was “fairly painless. It was one of the easier implementations we’ve done,” says Nathan A. Anderson, director, financial systems & analysis. “It was worth the effort. Over time, this will build to be a nice cost savings for the university.”
To read the complete case study, visit http://www.ellucian.com/Solutions/PayNetExchange-from-Ellucian/