https://zaigo.ai/assets/CashApplicationAutomation-iKuO0m6X.js

1import{j as e}from"./index-CSXiOleU.js";import{W as a}from"./WorkflowPage-CDfnhvdb.js";import"./PageHero-D4z3UNWW.js";import"./Authority-C1oQBaoV.js";import"./StatBlock-DCdX9-z8.js";/* empty css                      */const t={slug:"cash-application-automation",seo:{title:"Cash Application Automation — Zaigo",description:"Cash application automation with your rules AI-encoded — deduction codes, short-pay tolerances, rollups — so cash applies itself, not the month-end pile."},hero:{eyebrow:"Cash Application Automation",index:"01",title:"Cash application automation that holds your matching rules.",lead:"We encode each customer’s matching rules — remittance formats, deduction codes, short-pay tolerances — against the ERP and bank feed you already run.",meta:["Your matching rules, encoded","Cash applies itself","Only exceptions reach a human"],cta:{label:"Book a call",href:"/book-a-call"}},pain:{header:{index:"01",eyebrow:"The broken Friday",title:"The cash arrived. The ledger hasn’t heard.",intro:"From AR teams we have sat with: controllers and finance-ops leaders at PE-backed companies from $20M up — not shopping for software, already burned by a tool that couldn’t hold their exceptions."},items:[{title:"Every VMS sends invoices in a different format",description:"Roughly 900 invoice variations across 109 VMSs, all arriving by email — your staff carry 20 different tasks, and reconciliation is just one."},{title:"VMS reconciliation that never reconciles",description:"VMS data, MSP fees, your own fees, and payroll records each keep their own version of the number — wrong pay rates compound the gap."},{title:"Payments arrive without usable remittance",description:"The payment lands from a parent account with no advice attached; it gets force-matched or sits unapplied until month-end."},{title:"The month-end unapplied-cash pile",description:"Cash sits in the bank but off the ledger while someone hunts remittance through email threads, and the pile owns the close."},{title:"The tool that demoed clean, then failed",description:"The software matched the demo’s remittance files; your deduction codes, short-pay tolerances, and parent-account payments broke it within a month."}]},cost:{header:{index:"02",eyebrow:"What manual costs",title:"Unapplied cash is a line item, not a feeling.",intro:"What the manual way looks like where payments arrive by email and the matching rules live in someone’s head. Your numbers will differ — reconciling one month by hand puts figures on yours before anything gets built."},stats:[{value:"~900",label:"Invoice variations arriving by email across 109 VMSs at one staffing platform"},{value:"20",label:"Tasks its staff carry, of which reconciliation is only one"},{value:"$5–10M",label:"Margin opportunity an ops VP sized on fixing the AR side"}],note:"From anonymized engagements — a PE-backed national staffing platform and a PE-backed waste-services broker"},process:{header:{index:"03",eyebrow:"How it works",title:"We encode your exceptions.",intro:"No new system for your team to learn. The matching rules your best AR person carries in their head become the application."},steps:[{title:"Reconcile one month by hand",description:"We match one month’s bank deposits and remittance against open AR — what matched, what was force-matched, what sat unapplied. That gap is where the rule set starts.",meta:"First month"},{title:"Encode each customer’s matching rules",description:"Remittance formats, deduction codes, short-pay tolerances, parent/child account rollups — documented against the ERP and bank feed you already run, yours to keep.",meta:"Per customer"},{title:"Payments apply themselves",description:"Self-applying from the bank feed; anything that breaks a rule lands in an exception queue, and customers who slip their usual payment cycle surface early.",meta:"Every cycle"}]},intercept:{kicker:"Not another tool",title:"The software reads the remittance. It can’t hold your matching rules.",body:["Cash application software demos on clean remittance and fails on your exceptions: the customer who pays from a parent account, the deduction codes only your AR clerk knows, the short

1-pay tolerance that lives in an email thread.","We work the other way: our AI does the reading — remittance advice, bank feeds, email attachments — and your encoded rules do the judging, so cash applies itself and only exceptions reach a human."],link:{label:"See how engagements work",href:"/services"}},faq:{header:{index:"04",eyebrow:"Questions",title:"Asked by controllers and AR managers.",intro:"The straight answers, before you book anything."},items:[{question:"What is cash application?",answer:"Cash application is the process of matching incoming customer payments to the open invoices they pay: reading the remittance advice, identifying the invoices covered, accounting for short payments and deductions, and posting the cash in the ERP. It sits between the bank feed and the receivables ledger — the step where paid becomes applied."},{question:"Why do payments sit unapplied at month-end?",answer:"Because a payment arrived without usable remittance, or broke a rule nobody wrote down: paid from a parent account, short-paid against a deduction, or covering invoices across several entities at once. Each one waits for a person to investigate, and under close pressure the waiting ones become a pile. It is a rules gap, not a reading gap."},{question:"Can cash application be automated without replacing our ERP?",answer:"Yes. The automation reads the remittance and bank feed you already have, applies your matching rules — remittance formats, deduction codes, short-pay tolerances, parent/child account rollups — and posts into the ERP you already run. Routine payments self-apply; only rule-breakers reach a review queue. No migration, no new system of record."},{question:"What’s the difference between cash application software and a cash application service?",answer:"Software sells you a platform and a generic matching engine; your team configures it, adopts it, and owns its exceptions. A service encodes your matching rules against the systems you already run and operates the outcome — payments applied, exceptions queued — so your team reviews exceptions instead of configuring software."},{question:"How does automated cash application handle short payments and deductions?",answer:"Through encoded rules, not guesswork. Each customer’s deduction codes and short-pay tolerances are documented up front: what is a valid deduction, what needs backup, what auto-clears within tolerance. Payments inside the rules apply themselves with the deduction coded; anything outside lands in the exception queue with the reason attached."}]},related:[{label:"AP invoice automation — the same workflow on the pay side",href:"/workflows/ap-invoice-automation"},{label:"Two-way matching — the matching-rules neighbor",href:"/workflows/two-way-matching"},{label:"Invoice reconciliation — the billing side, upstream of the payment",href:"/workflows/invoice-reconciliation"},{label:"Rebate tracking — where deductions tie to deal accruals",href:"/workflows/rebate-tracking"},{label:"Sales order processing — the order-to-cash chain upstream",href:"/workflows/sales-order-processing"},{label:"All services",href:"/services"},{label:"Who we serve: PE-backed companies",href:"/who/pe-backed"}],sources:[{label:"Nacha — What is ACH: how customer payments actually arrive before they can be applied",href:"https://www.nacha.org/content/what-ach"},{label:"IBM Think — What is accounts receivable: the ledger cash application posts into",href:"https://www.ibm.com/think/topics/accounts-receivable"}]};function h(){return e.jsx(a,{"code-path":"src/pages/workflows/CashApplicationAutomation.tsx:7:10",content:t})}export{h as default};