While reconciling direct bill, a frequent bottleneck occurs when a policy shell hasn’t been created or corrected, preventing applying a given set of a statement’s transactions. Purpose-built exception management helps greatly streamline the process of requesting action by the service team on a multitude of discrepancies during reconciliation, which at least makes “throwing the boomerang” more efficient.
When the service team notifies the accounting team they’ve completed the request, accounting must return to resume reconciling the partially processed statement. The full additional touch required by accounting reduces accounting’s efficiency.
Occasionally, the service team forgets to notify accounting they’ve completed the requested update, i.e. the boomerang never returns. This reality leads many accounting teams to run time-intensive periodic lookups in the AMS to see if exceptions in their tracking spreadsheet were already taken, and service simply forgot to let them know.
This added bottleneck drives further inefficiency that becomes unmanageable at scale. It also dramatically slows down the speed and volume of revenue that’s applied, preventing producers from being paid and accurate financial reporting.
Background reconciliation eliminates this bottleneck by periodically scanning integrated AMS databases for policy data changes, and re-triggering auto-reconciliation. When updates are found that unlock reconciliation of Triaged transactions, Comulate automatically reconciles them, removing an entire bottleneck and manual touch for accounting teams, and accelerating the application of revenue.
“We had about 40,000 transactions reconciled in our first 4 months in the background, freeing up hundreds of mundane hours from our team. I don’t think we expected that the daily average of our unapplied revenue balance decreased by millions of dollars during this timeframe, which to us, is even more significant.”
Director of Accounting, Top 20 Broker
Along with partial posting and exception management, background reconciliation is a critical component of and reason why purpose-built revenue automation is able to deliver such transformation and immense ROI.
