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Accounts Receivable

Apply Customer Payments to Invoices with Remittance Advice AI

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What the source describes

Invoiced's cash application page describes a CashMatch AI algorithm that applies customer payments to the right accounts, invoices and balances, plus remittance advice AI where you upload a document and the system matches payments to invoices while flagging inconsistencies. It also mentions custom matching rules, a virtual lockbox for scanning paper checks, short-pay and over-pay handling, multi-invoice application and a confidence score from 1 to 100 percent per match.

Result or outcome

According to the source, confidence scoring on each match lets the team zero in on transactions needing further review, and the virtual lockbox is designed to free staff from manually processing offline payments.

How to run it

  1. Set up custom matching rules in Invoiced so CashMatch applies payments to the right accounts, invoices and balances.
  2. Upload the customer's remittance advice so the remittance advice AI can match the payment to invoices and flag inconsistencies.
  3. Scan paper checks through the virtual lockbox, then review short-pay, over-pay and multi-invoice applications.
  4. Sort matches by confidence score and review low-confidence ones, using the prompt below to work through a messy remittance.
  5. Post the applications only after the applied amounts and remaining balances agree with the remittance and bank deposit.

Try it yourself

Copyable prompt

Help me apply a customer payment. Payment details: customer [name], amount [amount], date [date], reference [reference]. Remittance advice text: [paste]. Open invoices for this customer: [paste invoice number, date, open balance]. Match the payment to invoices using the remittance first, then exact amounts, then oldest-first only if the remittance is silent. Show a table of invoice, amount applied and remaining balance. Clearly flag any short payment, overpayment, deduction, or invoice number in the remittance that does not exist in the open list, and give me a confidence rating of high, medium or low for the overall match. Do not apply anything you cannot explain.

Replace the [bracketed] placeholders. Remove client names, account numbers, and personal data before pasting into any AI tool.

What to review

Tie each payment's total applied amount to the bank deposit and the remittance advice. Investigate every short payment, deduction or invoice number that does not appear in the open list before posting, rather than writing off the difference. Treat the confidence score as a pointer to where to look, and still review high-confidence matches on large or unusual payments.

Related free download: 50 AI Prompts for Bookkeepers (Prompt pack (PDF))

Source: Invoiced (vendor product page)

Not professional advice. This is general information, not accounting, tax, legal or financial advice. Check AI output yourself and consult a licensed professional for your situation. See our Terms of Use.

This entry summarizes a public source. Features, plans, and availability change, so confirm details with the vendor. Tool names are trademarks of their respective owners.

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