Accounts Receivable
Cash Application

Cash Application Rules

4min

Invoiced's Cash Application Rules feature allows businesses to automate how payments are matched to open invoices based on customizable criteria. This feature reduces manual intervention, speeds up the reconciliation process, and ensures consistent application of payments across multiple transactions. It enhances the efficiency of cash application workflows, helping businesses to manage their accounts receivable more effectively.

By setting up rules, users can define specific conditions for applying payments that originate from bank feed transactions, based on criteria such as statement descriptor, payer name, and other transaction metadata.

Setup

To create a cash application rule in Invoiced, follow these steps:

  1. In the Invoiced app, go to Settings → Cash Application → Rules.
  2. Click New Rule.
  3. Enter in the formula for your rule (see examples below).
  4. Choose the action you want to take when a transaction matches the rule, such as ignoring it, setting the payment method, or selecting a specific customer.
  5. Click Save.

Once your rule is created it will apply to new bank feed transactions as they are ingested into Invoiced.

Bank Feed Transaction Formulas

When creating a cash application rule, you can use these properties from the bank feed transaction to write your formula. These properties are populated conditionally based on the data available from your bank feed. Each bank connection and/or transaction may not have values for all of these properties. These properties are accessed via the transaction variable in the formula, e.g. transaction.description.

  • description
  • amount
  • check_number
  • merchant_name
  • payment_reference_number
  • payment_ppd_id
  • payment_payee
  • payment_by_order_of
  • payment_payer
  • payment_method
  • payment_processor
  • payment_reason
  • payment_channel

Example Formulas

  • transaction.description contains "ORIG CO NAME: Stripe" - matches transactions where the statement descriptor contains ORIG CO NAME: Stripe
  • transaction.payment_method == "ACH" - matches transactions where the payment method is set to ACH
  • transaction.merchant_name == "Acme Corp" - matches transactions where the merchant name is exactly equal to Acme Corp
  • transaction.payment_ppd_id == "123456" - matches transactions where the ACH sender ID is exactly equal to 123456