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Accounts Payable & Receivable › Cash Application

How do you match cash when customers pay by statement rather than by invoice?

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Answer

Some customers pay a period statement total rather than referencing invoices. Match by taking the statement/remittance breakdown to allocate the lump sum across the listed invoices, clearing each. Where the payment doesn't equal any invoice combination, investigate deductions or short pays before leaving residuals.
Real-world example A retailer pays one monthly total; AR uses the accompanying statement to allocate it across 30 invoices.

Common follow-ups: How do you allocate a lump-sum payment? | What if it doesn't tie to invoices?

Reconciliations Collections & Bad Debts Cash Application
All 23 Cash Application questions