AI tied to blockchain can enhance and streamline the processes within Corporate Shared Services including OTC, PTP, and RTR. Here are some ways AI and blockchain can be integrated into these functions:

July 18, 2023 | Author ChatGPT and Gavin Capriola

Smart Contracts for OTC:
a. Order Automation: AI can analyze customer orders and execute smart contracts on the blockchain, automating the order processing, fulfillment, and payment processes.

b. Dispute Resolution: Smart contracts can incorporate AI algorithms to automatically handle disputes and discrepancies, ensuring transparent and efficient resolution.

Supply Chain Management with AI and Blockchain for PTP:
a. Supplier Verification: AI can analyze and verify supplier data, while blockchain can securely store and validate the supplier information, ensuring authenticity and reducing fraud.

b. Supply Chain Visibility: AI can analyze real-time data from sensors and IoT devices, providing insights into supply chain performance, while blockchain can ensure data integrity and immutability.

c. Smart Contracts for Payments: AI algorithms can analyze invoice and payment data, while blockchain-based smart contracts can automate payment processes, ensuring accuracy, transparency, and efficiency.

AI and Blockchain for RTR:
a. Auditing and Compliance: AI algorithms can analyze financial data for anomalies and patterns, improving auditing processes, while blockchain can provide an immutable record of transactions, enhancing transparency and compliance.

b. Fraud Detection: AI can detect suspicious activities and potential fraud by analyzing financial data and patterns, while blockchain can provide an immutable audit trail, making fraud more difficult.

c. Data Security and Privacy: Blockchain technology can provide enhanced security and privacy for financial data, while AI algorithms can monitor and analyze access patterns to identify any potential security breaches.

By combining AI capabilities with blockchain technology, Corporate Shared Services can benefit from increased efficiency, transparency, security, and accuracy in their OTC, PTP, and RTR processes. These technologies enable automation, data integrity, and improved decision-making, ultimately enhancing the overall performance of shared services functions.

For more information:

Corporate Shared Services refer to centralized departments within a company that provide common services to different business units or departments. The three primary areas of Corporate Shared Services are Order to Cash (OTC), Procure to Pay (PTP), and Record to Report (RTR). Here are some use cases related to each of these functions:

Order to Cash (OTC):
a. Customer Inquiries: Shared services can handle customer inquiries related to order status, delivery, and invoices, providing prompt and accurate responses to maintain customer satisfaction.

b. Order Processing: The OTC team can receive and process customer orders, ensuring accuracy, timely delivery, and proper invoicing.

c. Credit and Collections: Shared services can manage credit assessments, credit limit monitoring, collections, and dispute resolution to optimize cash flow and reduce bad debt.

d. Revenue Recognition: OTC can support revenue recognition activities, ensuring compliance with accounting standards and accurate financial reporting.

Procure to Pay (PTP):
a. Vendor Management: Shared services can maintain vendor master data, handle vendor onboarding, and manage vendor relationships, ensuring smooth procurement processes.

b. Purchase Order (PO) Processing: PTP teams can process purchase orders, validate pricing and terms, and ensure timely delivery of goods and services.

c. Invoice Processing: Shared services can receive, validate, and process vendor invoices, matching them with purchase orders and contracts for accuracy and timely payment.

d. Payment Processing: PTP can handle payment processing, including payment approvals, payment runs, and reconciliation, ensuring vendors are paid on time and accurately.

Record to Report (RTR):
a. Financial Reporting: Shared services can prepare financial statements, management reports, and regulatory filings, ensuring accuracy, completeness, and compliance with accounting standards.

b. General Ledger Maintenance: RTR teams can maintain the general ledger, including journal entry processing, account reconciliations, and chart of accounts maintenance.

c. Financial Consolidation: Shared services can consolidate financial data from multiple business units, perform intercompany eliminations, and prepare consolidated financial statements.

d. Financial Analysis: RTR can provide financial analysis and insights, including variance analysis, profitability analysis, and cost allocations, supporting management decision-making.

These are just a few examples of the use cases related to Corporate Shared Services in OTC, PTP, and RTR functions. The specific use cases and scope may vary depending on the organization and its business requirements.