NetCash - Automated Cash Application

Overview

NetCash streamlines the bank reconciliation process by automating cash application, allowing users to apply bank transactions directly to open GL transactions such as Bills and Invoices. This automation automatically generates the corresponding payment and closes the associated transactions.

Cash Application Automation Rules function similarly to GL Matching Automation Rules, enabling users to configure matching logic for seamless reconciliation.

Additionally, users can leverage Netgain Best Match, NetCash’s matching algorithm, to apply cash based on system-suggested matches. 

The walkthrough below outlines how to automate cash application using NetCash.

 

Click here to view the walkthrough in full screen.

Step-by-Step Process

  • Cash Application Automation Rules are configured by navigating to NetCash > Setup > Automation Rules.  
  • On the subsequent screen, select New to create a Cash Application Automation Rule.  
  • Next, complete the relevant fields as needed (described below):
    • Assign a descriptive Name to the automation rule for easy identification, and select Cash Application as the Type:
    • Like GL Matching Rules, Cash Application Rules can include an Amount Variance Limit, a Date Tolerance, assignment to a Group, and an option to Require Review:
    • With Cash Application, the Apply Discount setting determines how NetCash handles amount differences when the Bank Transaction is less than the open GL Transaction it is applied against: 
      • When Apply Discount is enabled, NetCash applies a discount for the difference and closes the GL Transaction. 
      • When Apply Discount is not enabled, NetCash leaves the difference unapplied and the GL Transaction remains open after the Bank Transaction payment is applied.
    • The Book Rounding Entry setting determines how NetCash handles amount differences when the Bank Transaction is greater than the open GL Transaction it is applied to: 
      • When Book Rounding Entry is enabled, NetCash creates a rounding entry for the difference.
      • When Book Rounding Entry is not enabled, the Bank Transaction will not be matched.
  • Once all fields are properly configured, click Create to save the automation rule with the specified parameters.

Additional Considerations

  • Similar to GL Match Automation Rules, Cash Application Rules can include Filters, Match Criteria, and Grouping on either the Bank or GL side, as well as a Transaction Template for any rounding entries that may be created:

  • On the Review Matches page (NetCash > Bank > Review Bank Matches), matches created by Cash Application rules are identified by the label Cash Application in the match description:

  • Another valuable feature to enhance automation of the Cash Application process is the Netgain Best Match tab, located on the Auto Match page:
    • Go to NetCash > Bank > Auto Match Bank Transactions. 
    • In the top right corner, switch to Netgain Best Match (Cash Application) mode:
    • Apply filters as needed. This page displays suggested matches generated by Netgain’s Best Match algorithm, which considers amount, date, and fuzzy text matching. From this page, matches can be created to apply the suggested Bank Transaction to the corresponding Open GL Transaction:
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