Manufacturing organizations have spent years modernizing their ERP environments to improve operational visibility, control costs, and scale efficiently. Yet for many, one of the most critical financial workflows — **how money actually enters the business** — remains fragmented, manual, and disconnected from the ERP. Invoices are created in Dynamics 365 Business Central. Payments are made elsewhere. Reconciliation happens later. Visibility comes last. For finance and IT leaders, this gap introduces inefficiency, delays cash flow, and undermines the value of ERP investment. Embedded payments inside Business Central address this structural problem by bringing payment acceptance directly into the system of record — where finance, operations, and reporting already live. # The Manufacturing Payments Gap Manufacturers operate under unique financial pressures: thin margins, capital-intensive operations, long production cycles, and customer payment terms that can stretch for months. Despite this complexity, many organizations still rely on outdated payment workflows. A typical process looks like this: - Invoice is generated in Business Central - Invoice is emailed or exported - Customer pays via ACH, card, wire, or check outside the ERP - Finance manually matches and posts the payment - Exceptions, short pays, and disputes are resolved offline - This approach introduces friction at every stage. ## By the Numbers - Average Days Sales Outstanding (DSO) in manufacturing ranges from **45 to 60 days** - Best-in-class manufacturers operate closer to **30–40 days** - Finance teams spend ****25–40% of AR** time on manual reconciliation and exception handling - Each manual payment exception costs an estimated **$5–$15 per transaction** in labor alone - These costs scale quickly as transaction volumes increase. # What Embedded Payments Actually Mean Embedded payments are not simply another integration or external payment portal. In an embedded model, **payment initiation, processing, and posting are part of the ERP workflow itself.** Within Business Central, embedded payments enable manufacturers to: - Accept payments directly from invoices - Automatically post payments against open AR entries - Support multiple payment methods within a single experience - Maintain one authoritative system of record for invoicing and cash For finance leaders, this eliminates reconciliation gaps. For IT leaders, it reduces integration complexity and long-term maintenance risk. # Why Manufacturing Businesses Benefit More Than Most While embedded payments provide value across industries, manufacturing organizations experience disproportionate benefits due to their operational and financial complexity. ## Complex Billing Scenarios Manufacturers frequently deal with: - Partial shipments - Milestone billing - Deposits and retainers - Credits and adjustments - Long-term customer contracts External payment systems often struggle to map cleanly to these scenarios, creating exceptions that require manual intervention. Embedded payments operate within the ERP’s native billing logic, reducing mismatch and rework. ## Cash Flow Directly Impacts Production In manufacturing, cash flow is operational. Delayed payments affect: - Raw material purchasing - Labor planning - Inventory replenishment - Fulfillment timelines Faster and more predictable payment cycles improve operational stability, not just financial reporting. ## Long-Standing Customer Relationships Manufacturers often serve the same customers for years. Embedded payments allow customers to pay using familiar methods directly from invoices — without forcing them into new portals or workflows. # Financial Impact That Matters to Executives ## Reduced DSO Without Aggressive Collections Manufacturers that enable invoice-embedded digital payments typically see **DSO reductions of 20–30%**. This improvement is driven less by policy changes and more by reduced payment friction. When customers can pay directly from an invoice — via ACH, EFT, or card — payment delays decrease naturally. ## Improved Cash Forecast Accuracy Organizations with real-time AR visibility improve cash flow forecasting accuracy by 15–25%. For CFOs, this means: - Better working capital planning - More confident investment decisions - Reduced reliance on short-term financing ## Lower Operational Costs Automated posting and reduced exception handling can cut manual reconciliation effort by 50–70%, freeing finance teams to focus on analysis instead of cleanup. ## Stronger Audit and Control Posture When invoices and payments live in the same system: - Audit trails are clearer - Controls are enforceable - Reporting is consistent across entities and periods - This is especially important for manufacturers operating across multiple plants or legal entities. # What IT Directors Should Care About For IT leaders, payment systems are often a source of hidden technical debt. Each external tool introduces APIs, credentials, error handling, and upgrade dependencies. Embedded payments help address these concerns. ## Reduced Integration Surface Area ERP-native payments minimize the need for custom integrations, reducing: - Ongoing maintenance - Vendor coordination - Failure points during upgrades - Security and Compliance Alignment Keeping payment workflows aligned with ERP security models simplifies: - Role-based access control - Logging and monitoring - Compliance reviews This also helps reduce PCI scope by limiting where sensitive data flows. ## Scalability Without Re-Architecture As manufacturers expand into new regions, currencies, or payment methods, embedded solutions scale within the ERP architecture — without parallel systems or major rewrites. ## Easier Change Management Because embedded payments follow familiar Business Central workflows, user adoption improves and training overhead decreases. # Payment Method Strategy and Cost Control Manufacturing payments are still largely bank-based: - **60–70%** of B2B manufacturing payments occur via ACH, EFT, or wire - Card adoption increases significantly when payment is embedded directly in invoices Embedded payments allow finance teams to: - Offer multiple payment options without complexity - Encourage lower-cost rails for repeat customers - Maintain control over processing costs ACH and EFT transactions typically cost 60–80% less than card payments, making payment method visibility and control a strategic advantage. # What to Look for in an Embedded Payments Solution Not all embedded payment offerings are equal. Manufacturing and ERP leaders should evaluate solutions against several criteria: ## ERP-Native Design The solution should be designed specifically for Business Central workflows, not retrofitted from a generic payment platform. ## Manufacturing-Ready Capabilities Support for partial payments, deposits, credits, and repeat customers is essential. ## Unified Multi-Rail Support ACH/EFT, cards, and future payment methods should be supported within a single workflow. ## Security and Compliance by Design The solution should align with enterprise security standards without adding operational burden. ## A Strategic Shift, Not a Feature Upgrade For manufacturing organizations, embedded payments represent a broader shift toward ERP-centric financial operations — where data integrity, automation, and visibility are built into the core system rather than layered on top. This approach enables manufacturers to: - Reduce operational friction - Improve financial predictability - Scale without adding complexity - Modernize finance without disrupting production # Where Chiizu Fits In Chiizu enables embedded payments inside Dynamics 365 Business Central with a focus on **manufacturing-grade financial workflows**. Rather than introducing another portal or disconnected system, Chiizu integrates payment acceptance directly into ERP processes, allowing manufacturers to modernize cash flow management while maintaining operational discipline. The objective is not to change how manufacturers run their business, but to remove the friction that slows it down. # Final Thoughts Manufacturers have already invested heavily in ERP modernization. Leaving payments outside that ecosystem undermines the value of that investment. Embedded payments inside Business Central align cash flow with operations, simplify technology stacks, and give executives the visibility they need to make confident decisions. For manufacturing leaders focused on efficiency, resilience, and growth, embedded payments are no longer optional — they are foundational.