Frequently Asked Questions (FAQs)
Cash application is a process that involves matching all incoming payments to the corresponding invoices/customer accounts, and remittances. Unless this mapping is done and cash is posted in the ERP, funds will not be available for use in the business. Cash application is a key part in the Accounts Receivable process.
Some of the key challenges associated with cash application process include:
- Data capture from emails, documents, bank files and vendor portals which is very complex
- Matching invoices to receipts is often complex and time consuming involving several rules
- Data entry and posting into different ERP systems is very tedious and error-prone
A critical advancement in technology for cash application is the utilization of Artificial Intelligence (AI). AI-powered cash application software can help achieve 95% and above touchless straight through cash posting while drastically reducing the time and effort involved with manual cash application processing. AI can automatically extract remittance data from multiple sources in many different formats, handle data entry and auto-apply the payments to open invoices. This is a giant leap in the evolution of cash application.
Emagia AI-powered Cash Application Solution puts AI to work to eliminate inefficiency in your cash application process. Using this intelligent cash application software, you can auto-match payments to invoices and remittances, and speed up cash posting directly into your ERP system. The intelligent cash app software resolves any discrepancies on cash receipts with automated dispute resolution.
Emagia Cash Application can process multiple formats of remittances through Machine Learning Models. Typical formats include Remittance in Email body, Remittance files in PDF, JPEG, Excel, CSV formats etc.
Sources of payments can be Open Banking APIs, Banking Portals, SFTP Sites etc.
Emagia Cash Application solution handles remittances from e-mails as body content and attachments, AP Portals, Customer Portals and SFTP sites.
Emagia Cash Application process supports formats such as BAI2, MT940, CAMT.053, EDI etc.
Gia, Emagia’s Cognitive Digital Financial Assistant, extends support to gather the remittance information directly from the customer.
The solution is capable of aggregating and extracting information from various payment and remittance sources and match against open invoices. The solution extends this through customer and invoice identification algorithms that operate at multiple levels. At the invoice level, options to match based on alternate reference, partial/truncated invoice numbers are part of the matching capabilities of automatic cash advance application.
For On-account/ Unapplied Payments, the solution provides suggested matches from the open invoices of the customer based on algorithms enabling faster exception handling.
Yes, this cash application specialist handles cross currency matching
In a typical B2B environment, matching payments to invoices and remittances is complex. Because payments and remittance advice notes come in many channels, in various formats, in multiple document types, across countries and regions and in many languages and currencies. All this adds up the complexity of cash app application, making the process of applying cash error-prone, inefficient and time-consuming.
More than 95% of the B2B transactions are made on credit. The faster a supplier applies cash, the faster they can use the funds back in business, the faster they can replenish the credit. Even though a buyer makes a prompt payment, if there is any delay in the supplier’s cash application process, credit will not be replenished for the buyer until the payment is mapped to the outstanding invoice and remittance, and cash is posted. This translates to a lost opportunity for both the buyer and the supplier. This is where automation of cash application helps.
Emagia Cash Application can process multiple payment formats including Lockbox, Checks, Checkstubs, Bank statements etc.
Emagia Cash Application Solutions can be integrated with multiple ERPs including SAP, Oracle, JD Edwards, MS Dynamics, Netsuite.
The output from the system can be directly integrated with reconciliation systems, GL systems such as ERP systems, Blackline systems.
Emagia Cash Application solution supports document processing across 15 different languages including English, French, German, Polish, Italian, Spanish, and Portuguese.
Emagia Cash Application offers the option to match the existing credits vs. debits for any customer.
Gia Payments—powered by Emagia’s AI-powered Digital Payment Assistant Gia –enables customers to make digital payments and leading to quicker Cash Application.
The system supports ACH, Direct Debits, Credit Card, Debit Card, SEPA debits and other international modes.
AI/ML are used in the Data Extraction from payment and remittance files. Gia, Emagia’s AI-powered digital financial assistant, is enabled for gathering remittance information directly from the customer.