In many companies cash application/resolution tasks are performed manually. Valuable staff hours are diverted to low-value tasks of manually processing payments and applying them to customer account balances. In addition to higher processing costs, manual A/R processing increases days sales outstanding* (DSO), creates payment backlogs, and increases errors. Time needs to be allocated to research exceptions and correct inaccurate data. Customer service also suffers without real-time visibility into customer payments and invoice statuses.
*Days sales outstanding, or DSO, is an accounting ratio used to estimate a company’s average collection period and gauge a company’s effectiveness in managing receivables and a lower number is desirable. Manual A/R processing can make it longer for customer remittances to get applied to A/R and artificially make the ratio higher.
Welcome to Celigo Cash Application Manager.
Celigo’s Cash Application Manager (formerly known as Lockbox Connector) automatically applies customer payments made via bank funds transfers to accounts receivables in NetSuite. Bank payments are immediately applied against invoices in a hands-free process. A dashboard allows companies to quickly identify exceptions and view details. Cash Application Manager (CAM) supports file formats used by many major banks for check payments, wire transfers and ACH push (ACH credit).
Cash Application Manager can automate more than 90% of the manual, repetitive tasks associated with managing customer remittances made via bank funds transfers. With CAM, companies can:
- Reduce manual work and errors by automating cash application of bank payments
- Lower DSO with immediate application of customer payments against invoices
- Accurately monitor cash flow and capital by reducing unallocated payments and open items
- Reduce operating expenses by handling more payments with fewer staff
- Receive out-of-the-box integration with NetSuite – no development is required
- Improve customer satisfaction with real-time view of account balances
- Reduce time crunch spent in month-end to catch up with backlog
- Receive complete audit trail and process visibility with dashboard and reports
Cash Application Manager is an integration between your bank/s and NetSuite. The solution supports you with the following strategies:
- Fully automates inbound integration and association of bank transactions with NetSuite Customer, Invoice & Customer Payment records
- Captures payments deposited at your bank and securely syncs them into your NetSuite account
- Eliminates the manual processes of entering payments into NetSuite
How Celigo Cash Application Manager Works
Cash Application Manager automates cash application as follows:
- Capturing bank payments
- Bank payment files are automatically passed from a designated FTP server at designated time intervals to NetSuite or can be manually uploaded into NetSuite
- A payment transaction is automatically created in NetSuite for each payment in the file
- Payments are matched against outstanding invoices based on customer information, invoice number and payment amount.
- For successful matches, payment is matched with the invoice and invoice is marked as fully paid. Status of the payment will be changed to “Applied”.
- For missing or questionable payments, they are flagged and no further action is taken
- Standard or customized reports can be run against payments that have been processed and exceptions that have been found
- Dashboard shows the status of all transactions processed by the SmartConnector with a complete audit trail
As a result of the matching process, each payment will have one of the following 4 status values:
- Applied: The Cash Application Manager finds the NetSuite invoice which matches the payment, and the payment amount is equal to the invoice amount. (A customer can send a single payment for multiple invoices. In that case, “applied” means that all invoices for a given payment were found in NetSuite and the amounts for each invoice were matched.)
- Partially Applied: The Cash Application Manager finds some of the NetSuite invoices which matches the payment. Because other invoices on the lockbox file are not found in NetSuite, the payment exceeds the total of the invoice amounts. This can also be due to an overpayment, i.e. if your customer pays against an invoice already closed.
- Unapplied: The Cash Application Manager finds the NetSuite customer that corresponds to the payment, but it does not find any of the invoices for that payment.
- Unidentified: The Cash Application Manager does not find the NetSuite customer for the payment.
The Cash Application Manager Usage Model and Data Flow
- The AR department creates invoices in NetSuite
- Your customers send checks, wire transfers, and/or ACH payments to your bank
- The bank creates a lockbox file/other formats, typically either fixed width or character delimited, which isn’t designed to be easily read by a person
- Celigo’s standard Cash Application Manager attempts to match payments first to invoices and then to customers, depending on the data in the file. The solution can be customized to look at one or more other criteria.
File Import Options With Cash Application Manager
The Celigo Cash Application Manager file import options
- Celigo Cash Application Manager can be configured to automatically import files from an FTP site based on a specified schedule
Cash Application Manager Dashboard
Cash Application Manager provides an intuitive and graphical dashboard using which you can analyze the payment mis-matching issues easily and resolve them directly in NetSuite.
Celigo Integrator.io integration platform
The Cash Application Manager is built on the Celigo integration platform, integrator.io. Cash Application Manager comes with prebuilt data flows between your bank and NetSuite. You can add any number of banks to your account provided you secure adequate licenses. You can set up any type of bank payment file in the platform. You can run the data flows to import new bank file from the FTP serveron demand or schedule data flows to run at specific intervals. The status of the integration jobs can be viewed in real time and issues, if any can be resolved from within the integrator.io platform.
Key Features of the Cash Application Manager Solution
- Supports multiple banks having different file standards and payment types
- Supports multiple accounts in single file from the same bank
- Parser settings – to set positions of fields from data file
- Credit Memo - available in all editions
- Write-off - accurate reporting
- Dummy Customer - to assign placeholder customer
- Write-off based on Threshold for underpaid transactions
- Summary and Exception Dashboard
- Reports (Short Paid Invoices, Overpaid Invoices)