Cash application Definition.

Line-by-line matching of invoices to their payments (or of debit entries to credit entries) in the accounts receivable and accounts payable ledgers. It can be automated using the references payments carry: invoice number, the end-to-end ID of credit transfers, and the UMR of direct debits. Clean cash application is a prerequisite for reliable bank reconciliation.

See also

→ Reconciliation→ camt.053

Where this term appears

GuidePayments in Germany, Austria, and SwitzerlandGuidePayments in FranceGuidePayments in SwedenGuidePayments in SwitzerlandGuidePayments in CanadaGuidePayments in SingaporeGuideB2B payments around the worldGuideCommercial cards and business expense paymentsGuideISO 20022 and the global migrationGuideReconciliation and reporting around the worldGuideVirtual cards and B2B paymentsGuideReconciliation principles

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