Cash application

A cash application links one verified receipt with one accounting document and records the applied amount and date. The Cash Reconciler selects an eligible posted invoice, checks the receipt’s unused amount, then applies a positive amount within both remaining balances. The source receipt and document stay linked so finance can explain a partial payment.

• Receipt balance. Start from verified provider cash and subtract existing applications.
• Document balance. Compare the proposed application with the posted document’s outstanding amount.
• Application trail. Retain the receipt, document, amount and application time for later reconciliation.

Agree how the finance team chooses among multiple open documents for one business partner. Decide how it investigates a provider event associated with the wrong partner. A duplicate import or repeated application request should return the prior result rather than consume the receipt again. A refund or write-off requires its own authorized path; do not disguise either as a cash application.

Use a posted rent invoice for more than the verified receipt amount. Apply only the confirmed cash and leave the remaining obligation visible. Attempt an application that would exceed the receipt’s unused amount, then one that would exceed the document’s outstanding amount. Both should stop. Retry the valid application with the same identity and check that the resulting applied total has not changed. Compare the ledger posting date with the cash received date; they represent different events.

For one receipt covering several charges, decide which posted document receives each portion before applying cash. Record separate applications against the same receipt only while an unused amount remains. A reversed application needs its reversal date retained so a later balance explanation includes both the original allocation and the correction. During a rehearsal, have another team member trace the receipt back to its provider event, then forward to every document it reduced. They should be able to explain the unapplied amount from those records. Keep the accounting period of the invoice distinct from the date the tenant paid; month-end reports can otherwise confuse billed rent with actual collection.

• Cash Applications — Inspect each receipt-to-document match and its applied amount.
• Posted Invoices — Find eligible posted documents and their counterparty context.

See receipt application and journal posting.