Automating Creation of ACH Reports by POS Systems

In the franchise business, Royalty/ACH reports are essential to ensure smooth financial operations. However, manually generating ACH reports can be daunting and tedious, especially when there are a large number of stores. In this case study, we will show you how CI Global helped a Quick Service Restaurant (QSR) automate the creation of ACH reports by integrating a cloud-based POS system. We will also highlight the solution’s benefits, the challenges it addressed, and how it improved the ACH report submission process’s efficiency, accuracy, and compliance.

The Customer

The customer is in the QSR industry with 20+ stores across multiple locations spread across multiple states. Each store has a point-of-sale (POS) system that records the sales transactions and generates reports. A crucial aspect of their financial obligations involves submitting a weekly Automated Clearing House (ACH) report to the corporate office. This mandatory report is essential for franchise royalty compliance. The ACH report involves calculation of royalty for each store by including not only the sales but the marketing and operational cost also. The parameters are set by the corporate office and vary from store to store.

What are ACH Reports and Why are they Important for Franchise Businesses?

ACH reports play a pivotal role in franchise business operations. These royalty reports outline the fees owed by franchisees to the franchisor for utilizing the brand, system, and support provided.

Key points:

• Calculation basis: ACH royalty reports are derived from the franchise’s sales data, factoring in the percentage-based charges for royalty, operational cost, and marketing fees determined by the franchisor.
• Financial obligations: A crucial tool for both franchisees and franchisors, ACH franchise reports ensure the accuracy of franchise payments.
• Performance monitoring: Beyond financial transactions, ACH franchise reports contribute to monitoring and evaluating the overall performance of the franchise business.

Challenges Faced by the Customer

These are some of the challenges that were faced by the customer.

Downloading the sales report from the POS system

The customer had to log in to the POS system of each store and download the sales report for the desired period. This process was tedious and time-consuming, as the customer had to repeat the same steps for 20+ stores. They also needed to securely store and organize the downloaded royalty reports, necessitating extra effort and space management.

Applying the franchise cost formula to each sales report

The customer had to apply the franchise cost formula to each sales report, which involved calculating the royalty, operational cost, and marketing fee based on a percentage of sales. They had to manually enter each store’s sales data and percentage values, which was prone to errors and inconsistencies. They also had to ensure the franchise cost formula was updated and accurate.

Consolidating the ACH report for all 23 stores

The customer had to consolidate the ACH report for all 23 stores, which involved adding up the franchise cost for each store and creating a summary report. The customer had to format and present the report clearly and professionally. The manual process took about three days to complete every week, posing a notable drain on resources and productivity.

Solution Provided by CI Global

CI Global implemented a transformative solution by integrating Linga POS, a cloud-based Point of Sale system with RubiCube, to automate ACH report generation for the client. Linga POS is a comprehensive POS system that provides features such as inventory management, loyalty programs, online ordering, and analytics. Microsoft Fabric’s Data Lakehouse, a platform combining the best of data warehouses and data lakes was used to provide reliable and scalable data storage and processing
The devised solution capitalized on the synergies of Linga POS and RubiCube to automate ACH report generation. The solution involved the following steps:

• A customized ACH report template was crafted in RubiCube, encompassing the franchise cost formula and parameters specific to each store as set by the corporate office.
• RubiCube was empowered to automatically calculate the ACH report for each store based on sales data. The aggregation of these royalty reports for all 20+ stores was seamlessly handled by integrating multiple POS systems.

Results and Benefits

The solution provided by CI Global resulted in several benefits for the client, such as:

1. Time and effort saving

The solution eliminated the need to manually download and process the sales reports, which saved much time and effort. The client estimated that the solution reduced the time required to generate the ACH report from three days to a few minutes, significantly improving productivity and performance. The reduced efforts also increased profits as the automation saved almost a week of effort in resources every month.

2. Increased accuracy

The solution ensured the accuracy and consistency of the ACH report, which reduced the risk of manual errors. It also verified that the ACH report was consistent with the sales data and the franchise cost formula, avoiding discrepancies. The solution increased the quality and reliability of the royalty report, which enhanced its reputation and credibility.

3. Meeting standards and visibility

The report fulfilled the statutory obligations that required the client to pay a certain percentage of their sales to the corporate office as franchise fees. It also gave the client a clear and detailed insight into how each store and the entire chain performed regarding sales, revenue, and profitability. The report helped the client to monitor and evaluate their business operations and customer satisfaction.

CI Global – Empowering Projects of Future

The solution reduced the manual effort, increased the accuracy, enhanced the visibility, and improved the compliance of the franchise payments. The client was satisfied with the solution and appreciated the value of the royalty reports delivered. CI Global’s expertise and professionalism are evident in this case study. If you want to learn more about our services or how we can help you achieve your goals for your Quick Service Restaurant (QSR) or retail hubs, visit our website and get in touch with us today.