The Automated Cash Application feature enables you to automatically generate a batch of customer payments in NetSuite and apply them to open invoices. The generated customer payments are then automatically matched and cleared in the system. 

Overview

Benefits of Auto Cash Application

• Auto-match incoming customer payments from your bank to open invoices
• Auto-create GL customer payments 
• Auto-apply identified invoices to the generated GL payments
• Auto-reconcile the generated GL payments against imported customer payments
• Irrespective of the method of import, it is possible to perform cash application on imported bank lines
• Use automated matching rules to support matching on invoices IDs
• Reduce the time for entering the payments for invoice and thus the cost
• There is less chance of data entry errors
• Improved account receivable aging

Role permissions required

Invoice – Edit

Customer payment – Create

Automated cash application  – Full

Limitations

• Cross-subsidiary and cross currency invoice application to payments
• Credit memo or customer deposit considerations cannot be applied during the invoice application to payment
• Ability to customize layout

Auto cash Application Page

Customer Mapping Rules

• When you select a customer for an imported bank line on the Automated Cash Application page, you have the option to create a customer mapping rule.
• When a customer mapping rule is created, NetSuite saves an association from the Payor and Memo field of the imported bank line to the selected customer.
• The next time you receive a bank line without customer information, NetSuite uses the rule to try to find an associated customer. The system compares payor and memo values in the bank line with those specified in the rule.

Changing customers

It is possible to  select the customer from the dropdown list.

Statuses of import Bank lines in Auto Cash application

Ready to Submit – imported bank line is selected for bank line

To review – imported bank line can be  selected for bank line

No customer – Imported Bank line cannot be selected for bank line

Editing payment allocation on Invoices

Finding more invoices for the imported payments

When you click to the view invoices button, you will be getting a popup alert containing invoices list

Important Considerations while Generating Customer Payments

• The Automated Cash Application feature does not support multiple customers per bank line. You cannot generate a payment for multiple customers.
• Not all bank lines on the Automated Cash Application page are necessarily payments.
• If you import bank lines that specify invoices and later change the customer ID or currency on the invoices, NetSuite cannot generate the payments.
• To generate a payment from an imported bank line, you must select a customer.
• You can generate unapplied customer payments if the payments do not have invoices to apply to.
• When an invoice number is not specified, the system applies the payment to an open invoice with an amount due equal to the payment amount. If multiple invoices have the same amount as the payment, the system applies the payment to the oldest invoice. 
• When a transaction becomes unreconciled, NetSuite does not delete the payment generated by the Automated Cash Application feature. However, the corresponding imported bank line does not reappear on the Automated Cash Application page. Instead, you can find and process the imported bank line on the Match Bank Data page.