A credit ledger Finance could trust
Supplier credits moved from spreadsheets into a ledger Finance controls.
- ₹14 Crpayables cut in a quarter
- ₹80 Crcredit notes processed in a year
- 70%faster monthly reconciliation
The problem
About 11% of shipments came back: roughly 400 returns a month against 3,600 deliveries. When a supplier had already been paid, Bizongo had to recover the excess from future payables.
In one quarter, 250 such credit notes were worth about ₹16 Cr. Recovering them meant a BI request, a Tally dump, manual matching and a hand-calculated offset.
What the evidence said
The existing auto-adjustment used first-in-first-out. It could consume the wrong note, split a large note across many invoices, adjust a note Finance had not approved, or count a duplicate twice.
- 3,600 deliveries
- 400 came back as returns
What I decided
Before any new code, I insisted on a ground-zero clean-up: mark notes already used as settled, cancel invalid ones, then recalculate balances. New code on corrupted state formalises old errors.
Then a seller-level credit ledger replaced FIFO: approve or cancel each note, pick which notes to apply at payment, prefer the note tied to that invoice, block invalid combinations, and keep an audit trail and reversals.
The result
₹14 Cr of payables cut in a quarter and ₹80 Cr of credit notes processed in a year, with monthly reconciliation effort down 70%.
Utilisation doubled from 28% to 57%, and settlement time fell from eight days to six.
What I took from it
Finance kept the choice; the system kept the rules. Control and usability were the same design problem.
Figures are from Bizongo appraisals, product records and my resume, for the period shown.