“Cash application has historically been a necessary but often labor-intensive part of the receivables process,” the release said. “Once a payment arrives, accounts receivable teams must determine which invoices it belongs to, verify remittance information and resolve discrepancies before cash can be applied correctly.”
Reconciliation has become complex as businesses receive more payments across a growing range of payment types and channels, according to the release. That means companies often get bogged down by manually moving between systems and matching data, time that could be spent on higher-value strategic efforts.
With the Receivables Matching solution, companies can use “configurable matching technology to automatically match incoming payments, remittance information and open accounts receivable data,” the release said. By integrating these data sources, “businesses can reduce manual effort, accelerate cash application and improve visibility into receivables activity.”
“Receivables Matching simplifies one of the most complex and bifurcated parts of the receivables process by combining matching, exception management and reporting into one solution built entirely in-house by J.P. Morgan Payments,” Michelle Conklin, the company’s head of receivables and public sector, said in the release. “For clients, that means greater automation without having to replace the technology they already use, helping them operate more efficiently while gaining greater visibility into incoming cash flow.”
Chief financial officers are chasing a more optimized and automated reconciliation process,” PYMNTS reported in August.
A payment that carries a persistent customer identifier, invoice reference, virtual account identity or structured remittance information can arrive with much of the context already needed to process it. Rather than software combing through emails, bank statements and ERP records to determine what happened, the transaction delivers that evidence on its own.
“What real-time transaction data is doing is enabling us to have a forward-looking assessment,” Boost Payment Solutions Chief Technology Officer Rinku Sharma said in an interview with PYMNTS in April. “The question used to be what happened. Now the question is, what should we do about it right now?”
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