Implement a cash application workflow that matches incoming ACH and wire credits against open receivables using remittance data

Steps

1. Retrieve incoming payment notifications via Modern Treasury payment.created webhooks or by polling the expected payments API; for each incoming credit, extract the available remittance data: wire message to beneficiary text, ACH addenda records (for CCD+ or CTX entries that carry structured addenda), or structured remittance information from camt.054 credit notifications
2. Implement a matching pipeline with a cascade of strategies ordered by confidence: exact match on your invoice number or customer reference embedded in the remittance text (highest confidence), match on amount plus counterparty name (medium confidence), amount-only match within a date window (low confidence, flag for review)
3. For ACH credits with addenda, parse the addenda record to extract structured payment reference data; CCD+ addenda contain a single free-text 80-character field, while CTX entries carry ANSI X12 820 or UN/EDIFACT REMADV structured remittance data requiring EDI parsing
4. For wire credits, parse the originator-to-beneficiary information (OBI) field returned by the bank on the inbound wire object; this field carries up to four 35-character lines of unstructured text that the payer populates with invoice references
5. Post matched payments as closed in your AR system and create a Modern Treasury Expected Payment resolved event by updating the expected payment object to link the incoming transaction; unmatched credits should remain as outstanding expected payments flagged for manual cash application
6. Generate a daily cash application efficiency report: percentage auto-matched, percentage manually matched, and percentage unmatched at end of day; use this to tune matching rules and identify payers who consistently omit remittance information