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. The Automated Cash Application feature automatically generates customer payments in NetSuite from imported bank lines, and then applies those payments to invoices in NetSuite.
Navigation
Transaction> Bank > Automated Cash Application
To generate customer payments:
If you have not already done so, import your bank data (Manually or using bank feeds). All imported bank lines with a positive amount appear and can be processed on both the Match Bank Data and Automated Cash Application pages. However, it is best practice to first generate all customer payments and then match the remaining imported bank lines.
To open the Automated Cash Application page, you can do one of the following:
Go to Transactions > Bank > Automated Cash Application.
If you are on the Match Bank Data page, click Automated Cash Application in the top-right corner. From the Account list, select the bank or credit card account for which you want to generate customer payments. NetSuite displays a list of imported bank lines for which NetSuite was unable to find matching payments.
An imported line appears if the following criteria are met:
The bank line contains a positive amount. The bank line has never been matched to an existing account transaction in NetSuite, which was subsequently submitted on the Match Bank Data page. If an existing transaction was matched and submitted, NetSuite permanently removes the corresponding imported bank line from the Automated Cash Application page. The Automated Cash Application feature does not support multiple customers per bank line. We cannot generate payments for multiple customers.
Customer Mapping Rules for Automated Cash Application
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.
Setting Accounting Preferences- Automated Cash Application
To set accounting preferences, go to Setup > Accounting > Preferences > Set Up Accounting. To determine how NetSuite applies payments that are missing invoice numbers, set the Apply Payments Without Invoice Numbers preference, which is on the General subtab, in the Accounts Receivable section. From the list, select your preferred handling method for generated customer payments that are missing invoice numbers. The method you choose determines how NetSuite suggests invoices for payment applications when the imported bank line does not specify invoice numbers. Apply by payment amount first, then to the oldest invoice – NetSuite makes the following suggestions:
If an invoice has an amount due equal to the payment, NetSuite suggests that invoice for payment application. The system does not consider discounts or the reallocated amount due on an invoice. If no invoice contains an amount due equal to the payment, NetSuite suggests the customer’s oldest invoice (or invoices) for payment application. The system determines the oldest invoices based on the Aging Reports Use preference, which uses the due date or transaction date. If your aging preference is set to Due Date but your invoices do not specify one, the system suggests the oldest invoice using the transaction date.
If multiple invoices have the same amount due as the payment, NetSuite suggests the oldest invoice from the group for payment application. By default, NetSuite uses the Apply by payment amount first, then to oldest invoice method. Apply to oldest invoice by date of aging preference – NetSuite suggests the customer’s oldest invoice (or invoices) for payment application. The system determines the oldest invoices based on the Aging Reports Use preference, which uses the due date or transaction date.
If your aging preference is set to Due Date but your invoices do not specify one, the system suggests the oldest invoice using the transaction date.
Note: Keep payment unapplied – NetSuite does not display invoice suggestions for payment application or automatically apply the payment to invoices. We must manually apply the payment to the appropriate invoice (or invoices).