Accounts Receivable Automation Software

Key Benefits

  • Automate application of client payments to open receivables
  • Identify unallocated client payments
  • Define and apply credit using complex business logic


Overview: Automating Accounts Receivable presents an unresolved challenge for ERP, AR and Accounting software packages and services. Recognizing client credits and applying payments to outstanding accounts is all part of the Accounts Receivable reconciliation problem.  In a world of electronic payments and bank statements, lockboxes, ACH, BACS, STEP2 and other low value remittances, payments are hard to identify. Compound that with appropriately posting them and marking invoices paid based on specific business priorities and rules – the challenge becomes even more difficult.

Purpose: Automation of Accounts Receivable payment posting and reconciliation allows a business to accurately and automatically apply a large percentage of receipts to invoices without the need for human intervention. Depending on business complexity and payment data quality, up to 90% of Accounts Receivable application can be automated. When system solutions are leveraged appropriately, resources are freed up to quickly work on the remaining manual postings, releasing orders and resolving problems and exceptions – instead of repetitively and tediously applying payments to invoices in the Accounts Receivable systems.



  • Incoming electronic payments or payment files may have limited client or invoice information. The operation is left with the cumbersome task of looking for clues and hints within transactional references.
  • Cash allocation and payment application may require research in multiple on-site and on-line systems in order to gather the necessary hints pointing to the right client or invoice.
  • Complex invoicing and business rules may require different ways in which client payments are applied to invoices or line items of invoices.
  • The rules for applying partial payments or overpayments may vary from client to client. This slows down the process even further as staff may need additional time to check which orders to release partially or in full as a result of a payment.
  • Ultimately any delay or error in AR posting and payment allocation will result in delayed service and would degrade the customer experience.



  • The ReconArt accounts receivable software solution supports the import and enrichment of invoice and payments data using any one-time or repetitive patterns which may help identify the client or invoices to which the payment should be posted.
  • Meaningful data from any number of systems can be brought in as reference data and stored in lookup tables which can be used to enrich and update the data to allow better quality of matching. Enrichment and update rules can easily be adjusted as new patterns are found.
  • Flexible match rules govern the business logic for each client on how payments should be applied, FIFO, LIFO, Highest Invoice first, etc.
  • Flexible match and update rules are set to distribute under and over payments which are in turn updated to be posted to client account or applied in full or partially to other invoices – all following the unique requirements of the client business operation.
  • With every payment file receipt, a large percentage of all AR payments are allocated and automatically posted in the AR system. This leaves only a small list of left over exceptions to be semi-automatically or manually applied, posted to account or handled directly in the AR system.





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