Companies are looking to leverage new technologies and trends to optimize their financial processes. In this sense, using an effective ERP system makes all the difference. Things get even better when the chosen solution allows for automatic integration with multiple banks.
In fact, this is a highly effective strategy that can bring considerable improvements and benefits. In short, it implies greater visibility and agility in processes and offers more security in operations.
Oracle NetSuite, the number 1 enterprise software solution. Cloud ERPThis allows for bank integration, helping companies handle financial demands effectively. Keep reading to understand everything about this procedure.
What does bank integration mean?
Bank integration is a well-known (CNAB) yet complex process that unites and reconciles your company's and system's financial information with multiple banks and current accounts.
CNAB stands for National Center for Banking Automation; companies and banks maintain an information interface through digital files. FEBRABAN establishes the standard for each of these files, determining the text format with defined columns.
With CNAB, companies keep their databases updated, since the files that are exchanged and cleared by the communication standard automatically update the records of payments made by customers, payment transactions to suppliers, PIX, transfers, taxes, etc., which greatly facilitates daily operations, since without this option each document would have to be manually entered into online banking and subsequently reconciled in the originating system, also manually.
Common problems in some companies
- Unfortunately, despite the existence of a communication standard called CNAB, this standard changes depending on the bank; in other words, it is modified.
- Not all ERP management systems are prepared to communicate with banks, and even when they are, they may not necessarily be able to handle all types of payments your company needs to make (e.g., utility bills, taxes, PIX, etc.).
- The vast majority of ERP systems and CNAB solutions communicate with banks via files; that is, the treasury user exports a file from the ERP and imports it into the bank to upload the orders, and subsequently executes the reverse process to reconcile the ERP.
- Accounts receivable are recorded in the ERP system, and the payment slip is generated manually at the bank.
- Multiple payments to the same supplier: CNAB solutions do not group payments by supplier.
- In terms of volume, not all solutions support sending and reading return data in bulk, with hundreds or thousands of transactions.
- Application of advance payments to suppliers.
In theory, standardized communication should improve and simplify treasury routines in the financial area, but in many cases this is not the case, and this process ends up generating an enormous manual effort and a gigantic problem for companies.
What are the benefits of bank integration?
By implementing bank integration, in addition to automating a range of activities such as issuing payment slips, scheduling payments, etc., you will be able to check and analyze the state of your finances much more quickly.
Reconciliations, for example, can be done automatically. Once communication is established between your management system and the banks, it becomes possible to compare the entries in the statements with the records in the systems quickly and accurately.
Furthermore, by automating payment and receipt routines, you avoid delays and potential interest and late payment fees.
Finally, you can integrate your financial routine with various other processes, such as, for example, controlling the... cash flow and budget monitoring. In this respect, there is a double benefit, since it eliminates the risks of manual errors, increasing the quality of information.
All of this helps to optimize processes, increase productivity, and free up time for your team to dedicate to higher value-added activities.
How does Oracle NetSuite's banking integration work?
The most complete banking integration in Oracle NetSuite is achieved through a solution developed specifically for this purpose. which solves all of these problems mentioned above and is known as ACS CNAB.
In short, it is an add-on bundle to Oracle NetSuite that establishes an interface for exchanging information between banks, companies, and clients in a secure manner.
ACS CNAB also has a number of complementary tools that allow you to improve and automate various day-to-day activities in the financial sector.
For enhanced security, the ACS CNAB process is integrated with a service called Banking VAN. This service aims to integrate Oracle NetSuite with multiple banks in the market through an API.
This integration increases security levels, as it makes it impossible to manipulate the information generated in the system.
At the same time, this solution automates actions performed daily by users, thus reducing the time it takes to complete tasks.
Hours
With Oracle NetSuite's banking integration, users have the autonomy to choose which installments should be sent to the banking institution, as well as generate the remittance file.
Automation begins when the remittance file is generated, sending the batch to the bank's VAN (Value Added Network), which, in turn, communicates with the banking institution.
Upon return, the intermediary retrieves the information from the bank, and the automation performs the processing in Oracle NetSuite, according to the instructions contained in the files.
After processing the return, the automation creates the payment transaction for the necessary cases or reports the corresponding errors.
How do I implement NetSuite banking integration in my company?
For effective banking integration, it is essential to have the services of an Oracle NetSuite consulting firm qualified to coordinate and implement such a project, such as Active Cloud Solutions.
This way, you can be sure that all procedures will be carried out following the highest standards of quality and safety.
Active Cloud Solutions is proud to be the largest implementer of Oracle NetSuite in South America and to deliver banking integration projects with excellence.
Get in touch now and request a demo!
