Cash applications is an important aspect and need to be taken care of with all due care. Your customers try to pay invoices in due time to avoid and late fees and thus the money recevied shall be applied ot the correct invoices.
What we do in Cash Application?
We do ensure that we have a system in place that a remittance advice is received for all customer payments. We do track all payments received in bank via ACH, WIRE or Check and apply them to the correct invoices.