Simplifying AP Indexing and AR Backlogs for a Multi-Entity Energy Company

Simplifying AP Indexing and AR Backlogs for a Multi-Entity Energy Company

Client Overview

ARDEM partnered with a multi-entity energy company to optimize accounts payable and accounts receivable workflows through structured business process outsourcing. 

The client is a vertically integrated energy company specializing in the production of fuel, gases, and gasoline. It operates across five distinct entities, each functioning like its own department. The client required a structured and cost-effective solution to manage both their accounts payable and accounts receivable processes.

Challenges Faced by the Client

1. Time-Consuming Accounts Payable Tasks and Backlog

AP indexing and journal entry uploads took hours due to complex invoices with up to 900-line items. Contractors were overutilized for repetitive transactional work. This led to increased labor costs. Each of the five entities of the company had separate inboxes and AP processes, leading to inefficiencies.

2. Manual Indexing Slowed Down Invoice Processing

Client used a tool called DocLink to capture and validate invoice data before pushing it to their Sage ERP. The validation stage (indexing and verifying vendor invoice details) was critical but extremely time-consuming. Downstream AP activities like GL coding and payments were still being managed in-house. All these created bottlenecks.

3. Accounts Receivable Team Faced Manual Growing Backlogs  

The AR department faced similar workload constraints, with a backlog of receivables requiring 24-hour turnaround. Accuracy was critical due to the high volume of line items and customer billing schedules. Existing tools had limited automation; templates helped but required manual intervention.

Why Our Client Came to ARDEM

1. Improve Turnaround Time

For AR, 24-hour responsiveness was essential. ARDEM’s ability to meet these expectations was one of the major deciding factors.

2. Manage Backlogs Efficiently

The client needed a team that could rapidly take over AP indexing and support the AR department with accurate billing.

3. Reduce Overhead Costs

ARDEM’s business process outsourcing services offered a more cost-effective solution compared to expensive internal contractors.

4. Adapt to Complex Multi-Entity Structures

With five separate entities, ARDEM’s structured approach made managing inboxes and indexing feasible and reliable.

How ARDEM Solved These Challenges

1. AP Indexing and Invoice Processing Services

ARDEM took over the daily indexing of invoices across all five inboxes. We validated vendor invoice data in DocLink before it was pushed to Sage ERP as part of our invoice processing services. We also ensured vendor name, invoice number, line item, and amount were accurately captured.

2. Collaborative Entity-Wise Support

We established connections with individual points of contact for each internal entity. We also managed rules and workflows specific to each department’s AP process.

3. AR Outsourcing Support

We built and uploaded templated AR files into the client’s system. We ensured line-item accuracy for customer billing. We also followed AR scripts and templates to automate portions of the receivables process.

4. Optimizing Communication and Responsiveness

We proactively flagged missing or delayed vendor invoices and delivered invoice files and AR uploads within the required turnaround time. Besides, we maintained consistent quality through structured dual-entry and QC processes.

How the Client Benefited from ARDEM’s AP and AR Outsourcing Services

✅ Significant Cost Savings 

Contractors previously performing transactional work were replaced with ARDEM’s cost-effective  accounts payable outsourcing team.

✅ Centralized Multi-Inbox Management 

ARDEM managed AP emails across five internal entities, handling invoice intake and processing with accuracy.

✅ Accurate and Timely Invoice Processing 

All vendor invoices were validated in DocLink before being pushed to Sage ERP, improving audit trail and reducing data discrepancies.

✅ Reduced AR Backlogs

ARDEM helped clear outstanding  accounts receivables tasks while ensuring 24-hour billing turnaround, improving the client’s cash flow operations.