Are you still applying cash payments in NetSuite the hard way? Join our webinar to see how you might take advantage of the latest developments from NetSuite to simplify this process.
Effective cash management is critical for a successful business, but having funds deposited in your account is only part of the process. Those payments must also be matched to the appropriate invoices so they can be cleared from accounts receivable (AR). Doing this poorly affects your cash flow statement and balance sheet by showing higher receivables than you actually have.
If your business receives hundreds or thousands of payments every month, however, it can be difficult for accounting staff to apply cash receipts to open receivables in a timely manner. These delays not only hurt days sales outstanding and AR aging, they can also lead to mismatched or overlooked payments. NetSuite’s new Automated Cash Application feature (released in 2021.2) avoids these problems by enabling you to automatically generate a batch of customer payments from imported bank statement lines and apply them to open invoices. The generated customer payments are then automatically matched and cleared in the system.
The Automated Cash Application feature displays all imported bank lines with a positive amount for an account and assigns a customer to each transaction if a match is found. It also allows you to create a customer mapping rule that the system can remember and use for future incoming bank lines. If a bank line specifies invoice numbers, the system displays the specified invoices to which the payment will be applied. Otherwise, the system provides a list of suggested invoices to which the payment can be applied. The system automatically allocates payment amounts to invoices that you can adjust as needed.