Processing Customer Payments

Cash application is the process of applying cash to corresponding open receivables. Simply put, applying a customer payment to an invoice or an unpaid receipt. When you receive a payment, whether it is a check, ACH, wire or credit card, it is very important to apply it against the proper open invoice(s). Many companies struggle with this process due to the lack of remittance that accompanies some payments or partial payments, and this creates a deduction on certain invoice(s). Whenever one of these instances occurs, it should be handled immediately.

Always try to apply payments as they are received. All payments received today, should be applied today. You don’t want your collections department contacting customers who have already paid.


Accurate and timely payment application is a necessity in today’s business environment, for the effective management of Cash Flow and Working Capital.

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Find out about our Cash Applications Services