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4 Key Areas to Automate the Cash Application Process

Published on 2 min read

Are you struggling at months end to reconcile all of your cash receipts? When it comes to the cash application process, the advent of electronic payments has actually made the process more difficult. With ACH, wire and credit card remittances coming from many sources - including mail, email, web portals, and EDI - the process has become labor-intensive and complicated. But there is a solution.

Intelligent automation technology can reduce the number of manual tasks your team manages on a daily basis by automatically matching cash receipts to invoices.

Here are four ways that an automation software solution can help improve your match rates, reduce errors, and streamline the cash application process.

1. Email Remittance

For customers that send payment remittance via email – be it in the body of the email message or as a PDF, Excel, CSV, or EDI attachment - you can use robotic process automation (RPA) to download the data in to a cash application solution automatically. As soon as those files land in the remittance inbox. Once the information has been downloaded, RPAs can match the receipts to open invoices.

2. AP Portal

Walmart, Amazon and many large buyers use their own AP portals. This has created a huge problem for cash application teams. To retrieve remittance files from these portals, a cash app team member must log-in, locate the remittance and discount details, and download them on a regular basis. In order to streamline this process, customer portal automation tools can retrieve the remittance data as soon as it becomes available and automatically match them against open invoices.

3. EDI

Some customers interact with suppliers through Electronic Data Interchange (EDI) to eliminate the manual process in sending purchase orders and receiving remittance files. Cash application software can automatically ingest multiple EDI formats and apply deduction coding in order to close off open invoices on the general ledger.

4. Lockbox Data

When it comes to lockboxes, manually capturing remittance data from check stubs and paying data key-in fees costs cash application teams time and money. Optical Character Recognition (OCR) technology can scan check and remittance images from banks (ISO 20022, EDI, BAI, BAI2, CSV) to reduce manual tasks, lower costs and process payments faster.

Versapay ARC’s Cash Application Module can help streamline the extraction of data and application of remittance to invoices no matter the source. By storing and managing all types of remittance details on a single platform, your team can have visibility and traceability while leaving the heavy lifting to sophisticated process automation tools.

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