The impact of volumes in the reconciliation of collection flows: the Abbanoa project

Critical issues in manual reconciliation activities

In performing Cash Collection activities, to unambiguously attribute payments to customers and the invoices issued, the Abbanoa team was using manual analysis of the payment reason to recognise the payer and the payment subject for every single bank transfer. Then, a manual verification was carried out on any movements already recorded and, if enough information was provided, the collection was manually matched to customer items – bills, instalments or repayment plans. The manual reconciliation performed by the Abbanoa team entailed a whole series of critical issues: the time spent on manual activities due to the lack of automatic procedures for the analysis of unstructured payment reasons; the resulting delay in the management of ordinary administrative activities and in meeting business requirements; the high likelihood of human error and the impossibility of having real-time collection alignment.

The tender

Piteco was awarded the tender called by Abbanoa for the acquisition of a software solution to support the reconciliation of collections generated by bank transfers, reconciling 2.4 million open items in just 3 months. Piteco solution contributed towards building the day-to-day accounting process, computerising the reconciliation of collection flows and eliminating low value added manual activities.