Cash Application Automation
Transform your cash application process with AI-powered payment matching and remittance processing. Automatically match payments to invoices with industry-leading accuracy, reduce unapplied cash, and accelerate your cash posting process.
Automatically match 95%+ of payments without human intervention, freeing up your team.
Minimize unapplied cash balances and improve working capital visibility.
Post cash in real-time instead of waiting for batch processing.
Reduce matching errors and customer disputes with AI-driven validation.
Process partial payments, short payments, and multi-invoice remittances automatically.
Understand customer payment patterns and predict cash flow more accurately.
Our SOPs are built on years of industry experience and best practices from leading finance teams.
Establish daily processing schedules for check deposits, ACH files, and wire transfers. Implement dual-control procedures for high-value payments. Validate payment amounts against expected receipts. Route exception items to appropriate team members based on complexity and value thresholds.
Process remittance data from multiple sources: EDI 820, email attachments, vendor portals, and paper documents. Implement OCR and AI-based data extraction with human validation for low-confidence items. Standardize remittance formats for consistent processing across all channels.
Configure matching rules based on customer profiles and payment behaviors. Set tolerance thresholds for amount variances (typically 0.5-1%). Define priority matching sequences: exact match, partial match, multi-invoice match. Regularly review and tune matching algorithms based on performance metrics.
Categorize exceptions by type: missing remittance, partial payment, overpayment, unidentified payer. Establish resolution timeframes based on exception category and amount. Implement escalation procedures for aged exceptions. Maintain exception resolution rate targets above 90%.
Deep domain expertise built into every feature, based on years of industry experience.
Checks remain common in B2B but are declining. ACH offers lower cost and faster clearing. Wires are used for high-value and international payments. Virtual cards provide enhanced security and rebate opportunities. Each method has different remittance data availability and processing requirements.
Exact matching requires invoice number and amount to match perfectly. Fuzzy matching handles variations in invoice numbers and small amount differences. Partial payment matching applies payments across multiple invoices. Predictive matching uses customer history to suggest matches for unclear items.
EDI 820 is the standard electronic remittance format. Email remittances require OCR extraction and validation. Vendor portals may require web scraping or API integration. Paper remittances need scanning and data extraction. Each format requires different processing approaches and validation rules.
Auto-match rate should exceed 90% for mature operations. Average processing time per payment should be under 2 minutes. Unapplied cash should remain below 1% of total receipts. Exception resolution time should average under 24 hours. Same-day posting rate should exceed 95%.