Background:

A client in the oil and gas industry has approximately 150,000 customer accounts with credit balances collectively totaling $17.6 million The majority of these credit balances are associated with residential accounts with some balances over 1 year old. AmeriGas desires to reduce customer credit balances, identify opportunities to improve credit balance management and eliminate future credit balances through process improvement, change management, training and improved analytics.

Goals:

  • Through a sampling process, establish an understanding of the time and effort required to research, analyze and resolve over 145,000 customer account credit balances collectively totaling $17.6 mil.
  • Develop a baseline for potential savings through accounting reversals and additional customer shipments.
  • Document the analysis and reconciliation steps to develop process improvement recommendations that will reduce and/or eliminate future credit balance situations based on lessons learned during the pilot.

Accomplishments / Benefits:

  • Developed a diagnostic tool clearly defining specific steps to be used internally to analyze and reconcile existing credit account balances either categorically on a broad-based level and/or at the specific customer account level.
  • Provided process improvement recommendations based on lessons learned from the analysis and reconciliation activities in order to reduce or eliminate credit balances and their associated work activities in the future.