All 23 Cash Application questions
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How are returned/NSF customer payments handled after they were applied? How is customer credit balance or prepayment handled in AR? How are bank fees and card-processing fees on receipts accounted for? What is a suspense account and how is it used in cash application? How does cash application affect the accuracy of collections activity? How are early-payment (settlement) discounts taken by customers recorded? How do you apply a single payment across multiple invoices with partial amounts and deductions? How does cash application interact with the bank reconciliation? What KPIs measure cash application performance? How do you match cash when customers pay by statement rather than by invoice?
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Accounts Payable & Receivable › Cash Application

What is straight-through cash application and what blocks it?

Intermediate

Answer

Straight-through processing means a receipt auto-matches and posts with no human touch. It's enabled by clean, structured remittance and unique invoice references. Blockers include missing/vague remittance, lump-sum payments, deductions, on-account payments, and reference mismatches—these fall to analysts as exceptions.
Real-world example Payments with structured remittance post automatically, while lump sums without detail drop out for manual handling.

Common follow-ups: What enables straight-through matching? | What are the main blockers?

Aging Analysis Reconciliations Cash Application
All 23 Cash Application questions