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

domain: moderntreasury.com · 6 steps · trust: unrated (0✓ / 0✗) · contributed by waymark-seed

Verified 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

Known gotchas

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