Parent-Child Entity Mapping: Streamline Credit Control and Consolidate Payment Reminders

The Struggles of Managing Multiple Subsidiaries
Managing credit control for companies with multiple subsidiaries can be a logistical challenge. Without a parent-child mapping system, creditors struggle to efficiently consolidate payment reminders for all entities under one umbrella. Instead of sending one reminder to the parent company, each subsidiary receives individual reminders, leading to confusion, missed payments, and wasted time.

This problem became especially evident for businesses with multiple child companies under a parent entity, where payment reminders were often scattered and inefficient.

That’s where OCTA’s Parent-Child Entity Mapping feature comes in—streamlining payment collections for creditors by automating the entire process.

The Problem: Disconnected Entities and Manual Follow-Ups
Before the upgrade, companies with several subsidiaries were unable to consolidate their payment reminders into one streamlined process. Each subsidiary received separate reminders, creating multiple touchpoints for creditors to manage. This led to several key problems:

Manual Effort: Creditors had to individually follow up with each child company, wasting time and resources.
Inconsistent Communication: Payment reminders were sent at different times to different subsidiaries, leading to confusion.
Delayed Payments: Disconnected reminders and follow-ups increased the likelihood of missed payments.
Complex Administration: Managing multiple child entities meant keeping track of each entity’s payment status separately.

These challenges made it difficult for businesses to maintain efficient cash flow management and increased Days Sales Outstanding (DSO), straining overall financial health.

The Solution: Parent-Child Entity Mapping
OCTA’s upgraded Parent-Child Entity Mapping feature solves these issues by allowing businesses to link child companies to a parent entity, consolidating all payment reminders into one centralized process.

What’s new?

Edit functionality: Users can now rename, edit emails, and phone numbers of parent entities, making it easier to keep information up-to-date.
Add or remove child companies: You can easily add or delete child companies, providing greater flexibility in managing subsidiaries.
Consolidated reminders: Payment reminders for all child companies are now automatically bundled and sent to the parent company, eliminating the need for individual follow-ups.

By implementing this feature, creditors no longer need to manually track each child entity’s payments. Instead, all reminders are consolidated and sent to the parent company, which is responsible for payment management.

Key Benefits of Parent-Child Entity Mapping

1. Time-Saving Automation
With OCTA’s automation, creditors can streamline their process by consolidating payment reminders for all subsidiaries. No more separate emails or manual reminders. Once Parent-Child Entity Mapping is set up, reminders are automatically consolidated and sent to the parent company.

This dramatically reduces administrative overhead and saves valuable time that would otherwise be spent on repetitive tasks.

2. Improved Accuracy
Without a centralized system, manual tracking of payments can lead to errors, missed reminders, or duplicate notifications. Parent-Child Entity Mapping ensures that the right reminders go to the right recipient—the parent company. This accuracy helps prevent late payments and improves cash flow management.

3. Centralized Communication
By linking subsidiaries to a parent company, all communication becomes centralized. The parent company receives one reminder for all outstanding payments from their child companies. This eliminates confusion and streamlines communication, making it easier for both creditors and clients to manage their accounts.

4. Flexible and Customizable
The ability to edit details for parent entities, as well as the flexibility to add or remove child companies, gives users full control. Whether the business structure changes or new subsidiaries are created, the system can be easily updated to reflect these changes.

5. Better Customer Relationships
Automating and consolidating payment reminders not only saves time but also enhances communication with clients. With OCTA, the process is more professional and efficient, improving customer satisfaction and helping to foster long-term relationships.

Optimizing Credit Control and Streamlining Payments
OCTA’s Parent-Child Entity Mapping feature is a powerful tool for creditors managing multiple subsidiaries under a single parent company. By automating and consolidating payment reminders, this feature makes it easier to track payments, reduce DSO, and improve overall cash flow management.

With the ability to link child companies to a parent entity, creditors no longer have to deal with the hassle of managing individual payment reminders for each subsidiary. Instead, they can automate the entire process, ensuring timely payments and efficient operations.

Ready to streamline your payment collection process? Try OCTA’s Parent-Child Entity Mapping feature today and see how it can improve your credit control!