Cash Application

The Cash Application feature in Invoiced is designed to streamline the process of matching customer payments to open invoices, reducing manual effort and improving accuracy. Powered by CashMatch AI, this feature intelligently automates the reconciliation of payments, whether they come through bank transfers, checks, or elsewhere.

CashMatch AI leverages machine learning to accurately pair incoming payments with the correct invoices, even when there are discrepancies in amounts or missing details. This helps businesses accelerate cash flow and minimize errors, leading to a more efficient and automated accounts receivable process.

Invoiced's Bank Feed feature simplifies payment reconciliation by allowing businesses to automatically pull transactions from their connected bank accounts via Plaid. This feature ensures that incoming payments are accurately matched with open invoices, reducing manual entry and errors. In addition to automatic syncing, users can also upload bank transactions manually through file uploads. With the Bank Feed feature, businesses can maintain real-time visibility into their financials and streamline the accounts receivable process, ensuring accurate and timely reconciliation of payments.

Once your bank feed is established, new transactions that could be customer payments will be created automatically as unapplied payments. You will have to apply these payments to open items in order to complete the cash application process.

You can retrieve transactions from your bank feed prior to it being connected to Invoiced. This can be useful if you have payments you have not recorded in Invoiced yet that you want to import. In order to do this, click the Import Historical Transactions on your bank feed connection on the Bank Accounts settings page.

Cash application rules can tailor the cash application process for bank feed transactions to match your unique requirements. See the Cash Application Rules documentation to learn more.

The Integrated Check Lockbox, powered by Earth Class Mail, streamlines the handling of check payments by automating the entire process—from receiving to depositing. With this feature, checks are automatically received, scanned, and deposited, and payments are created directly in Invoiced. The scanned check images are also attached for easy reference, eliminating the need for manual data entry and speeding up the cash application process. This integration allows businesses to efficiently manage check payments while maintaining full visibility into their accounts receivable.

See the Earth Class Mail documentation for more information on how to set up the integrated check lockbox.

Invoiced's CashMatch AI feature is an advanced tool designed to automate and optimize the cash application process. Powered by artificial intelligence, CashMatch AI intelligently analyzes incoming payments and automatically matches them to open invoices. It handles complex scenarios like partial payments, overpayments, or missing details, significantly reducing the need for manual intervention. By streamlining the reconciliation process, CashMatch AI helps businesses save time, improve accuracy, and accelerate cash flow, making accounts receivable management more efficient.

When enabled, CashMatch AI will automatically make intelligent recommendations for incoming unapplied payments, including from bank feed and integrated check lockbox. Recommendations made by CashMatch AI will have a confidence rating expressed as a % (0 - 100). CashMatchAI will not automatically apply these recommendations to your payments. You will be able to review the matches suggested by Invoiced and with the click of a button approve or reject the match to complete the cash application process.

Invoiced's Remittance Advice feature allows businesses to easily manage and track detailed payment information provided by customers. When customers submit payments, they often include remittance details that specify how the payment should be applied across multiple invoices. This feature enables businesses to capture and store that information within Invoiced, ensuring that payments are accurately matched to the correct invoices. By centralizing remittance data, this feature improves payment reconciliation, reduces errors, and streamlines the overall accounts receivable process.

For remittance advice that is created and has no exceptions, Invoiced will automatically create the corresponding payment. When there are exceptions detected, such as short payments, excessive discounts taken, or other anomalies then you will have to review these exceptions and choose how you want to handle it.

If you are not using an integrated bank feed or check lockbox, then you also have the ability to record payments through the Invoiced app. Once you receive the payment you will need to record the payment through the dashboard in order to mark the invoice(s) as paid.