Cash Application
Cash application is the process of matching incoming customer payments to their corresponding open invoices in accounts receivable. It ensures payments are correctly allocated, receivables are updated, and cash is accurately reflected in financial records.
Key Details
- Automates the accounts receivable reconciliation process by linking payments to specific invoices
- Uses AI and OCR to parse remittance advice documents that accompany payments
- Handles complex scenarios like partial payments, overpayments, and short pays
- Critical for high-volume B2B businesses with hundreds or thousands of open invoices