Accounts receivable (AR) automation links invoice records, incoming payment information, cash application and bank reconciliation. It can identify a payer, match a receipt to one or more open invoices, and create accounting entries—but a suggested match, a posted payment and a bank-reconciled transaction are different states. How much happens automatically depends on the systems and controls a company has configured.
How does accounts receivable automation work?
The workflow starts with an open receivable and ends when the company has checked its accounting records against bank activity. A typical process looks like this:
As an Amazon Associate I earn from qualifying purchases.
- Create and send the invoice. The billing or accounting system records the amount the customer owes as an open item on the customer account. SAP describes invoice issuance as creating open items that can later be cleared through its clearing process.
- Receive payment information. A company may receive customer remittance advice, a lockbox file, an imported bank statement or a bank feed. Remittance advice says which invoices the customer intends to pay; a bank record confirms a transaction received by the bank. The two can differ, so they should not be treated as interchangeable. Salesforce documents comparing customer advice with bank payment proof in its payment-reconciliation workflow.
- Extract and prepare the data. Software can extract payment details from documents, files or emails, then transform them into fields the billing or ERP system can use. Bank-statement import brings transaction data into the accounting workflow as another input. The specific formats and integrations vary by product.
- Identify the payer and match invoices. Matching can use payment text, customer or bank-account identifiers, and open-invoice details. Depending on the system, configured rules and machine-learning proposals based on previous accountant actions may help identify the likely account and invoices. A payment can cover multiple open items.
- Apply cash and create accounting entries. Once a match is accepted, the system may create a customer payment journal and settle the associated open invoice. Some configurations post and clear automatically; others show a proposal or preview for staff to review first. Microsoft documents cash-application and bank-reconciliation capabilities in Dynamics 365 Business Central.
- Resolve exceptions. Missing invoice references, amount differences, currency mismatches or uncertain payer identity can stop a payment from being applied automatically. Unmatched items may remain in a queue for staff to investigate and resolve.
- Reconcile with the bank. The company compares accounting activity with bank statement transactions. This checks whether the recorded receipts agree with bank-confirmed activity; it is a separate step from matching a receipt to an invoice.
How are payments matched to invoices?
The system compares available payment details with customer records and outstanding invoices. A payment reference or remittance document may name the invoice directly; other workflows rely on payer identifiers, amount, transaction text or configured rules. Machine-learning features can propose matches using historical decisions, but a proposal is not automatically a posted accounting entry.
Automation thresholds and controls determine what happens next. A company may permit high-confidence matches to post and clear automatically, while holding uncertain cases for review. For example, SAP Cash Application describes matching payment information with invoice data through an integration with SAP S/4HANA Cloud; the actual workflow depends on implementation and configuration. See SAP Cash Application documentation.
#1 Best Overall
- PORTABLE SCANNER FOR USE ON-THE-GO — The fastest and lightest mobile single-sheet-fed compact document scanner in its class¹
- QUICK DOCUMENT SCANNING ― This Epson ultra-fast scanner scans a single page as quickly as 5.5 seconds²; Windows and Mac compatible
- VERSATILE PAPER HANDLING ― Portable scanner scans documents up to 8.5 x 72 in; Also easily digitizes receipts and ID cards to make accounting, bookkeeping, and organizing simpler
- INTUITIVE, HIGH-SPEED SOFTWARE — Epson ScanSmart Software³ is a smart tool allowing you to easily scan, review, and save; Stay organized easily with the help of this Epson scanner
- EASY SETUP — USB-powered connect to your computer for quick and simple scanning; No batteries or external power supply required to operate portable document scanner; Standard Connectivity: USB 2.0
What happens when a customer pays several invoices at once?
A single receipt can be allocated across multiple open invoices when the payment details identify the invoices or the matching system can determine a suitable allocation. The receipt is then applied against several open items rather than treated as payment of just one invoice. If the remittance is incomplete, the amounts do not add up, or more than one allocation appears plausible, the system may leave the payment partly or wholly unapplied for review.
What is the difference between payment recording, application and reconciliation?
These are separate accounting checkpoints:
- Payment information received: the company has advice or transaction data, but may not yet have confirmed the money reached its bank.
- Payment recorded: a payment entry or journal exists in the accounting system. A journal can exist without settling a particular invoice.
- Cash applied: the receipt has been assigned to one or more customer invoices.
- Receivable cleared: the relevant open invoice balance has been settled in the ledger, subject to any remaining balance or adjustment.
- Bank reconciled: the accounting activity has been checked against the bank statement.
Systems do not necessarily complete all these steps at once. Microsoft’s documentation describes applying payments to open ledger entries and then performing bank reconciliation; Salesforce’s workflow compares customer advice, bank proof and open invoices before creating reconciliation records for review.
Rank #2
- FAST SPEEDS - Scans color and black and white documents a blazing speed up to 16ppm (1). Color scanning won’t slow you down as the color scan speed is the same as the black and white scan speed.
- ULTRA COMPACT – At less than 1 foot in length and only about 1. 5lbs in weight you can fit this device virtually anywhere (a bag, a purse, even a pocket).
- READY WHENEVER YOU ARE – The DS-640 mobile scanner is powered via an included micro USB 3. 0 cable allowing you to use it even where there is no outlet available. Plug it into you PC or laptop and you are ready to scan.
- WORKS YOUR WAY – Use the Brother free iPrint&Scan desktop app for scanning to multiple “Scan-to” destinations like PC, Network, cloud services, Email and OCR. (2) Supports Windows, Mac and Linux and TWAIN/WIA for PC/ICA for Mac/SANE drivers. (3)
- OPTIMIZE IMAGES AND TEXT – Automatic color detection/adjustment, image rotation (PC only), bleed through prevention/background removal, text enhancement, color drop to enhance scans. Software suite includes document management and OCR software. (4)
What remains manual?
Automation does not eliminate judgment when the incoming information is incomplete or inconsistent. Common exceptions include:
Free tools Windows power users keep installed
One-click scans. No signup required.
- A short payment or overpayment that does not equal the invoice balance.
- Remittance details that are absent, unreadable or refer to invoices the system cannot find.
- A payment that could belong to more than one customer or invoice.
- A currency difference or other amount discrepancy.
- A bank transaction that has no corresponding customer advice, or advice that does not match the bank-confirmed receipt.
Staff may need to identify the payer, determine the correct allocation, record an adjustment or request clarification before posting or clearing the item. The resolution path depends on company policy and system configuration.
Rank #3
- Fast and Efficient: Scans both sides of a document at the same time, in color, at up to 45 pages per minute, with a 60 sheet automatic feeder, and one touch operation. Innovative Feeding System.
- Reliably Handles Many Different Document Types: Receipts, business cards, reports, contracts, long documents, thick or thin documents, and more. Monochrome LCD Display.
- Designed exclusively for the included Canon CaptureOnTouch software;TWAIN and ISIS drivers are not supported.
- Easy Setup: Simply connect to your computer using the supplied USB-C cable.
- Bundled Software: Includes easy-to-use Canon CaptureOnTouch scanning software.
How AR automation products differ
Compare products by the work they actually automate, not just by whether they advertise cash application or reconciliation.
| Evaluation area | What to verify |
|---|---|
| System of record | Which platform owns customer identities, open invoices and accounting entries, and how payment data reaches it? |
| Payment inputs | Can it handle the company’s actual sources, such as bank statements or feeds, lockbox files, remittance advice and email attachments? |
| Matching | Which identifiers, payment-text rules or historical patterns are used? Can one receipt be allocated across multiple invoices? |
| Posting controls | Does a match post and clear automatically, appear as a recommendation, or require approval? Can staff preview proposed matches? |
| Exceptions | How are short pays, overpayments, missing references, currency differences and unmatched transactions handled? |
| Reconciliation and evidence | Can staff follow the payment from its source details through match outcome, journal entry and bank-reconciliation status? Confirm the evidence trail for the specific product and implementation. |
Product scope and eligibility also matter. Salesforce’s documented reconciliation workflow depends on its Data 360 and Billing workflow, and its documentation specifies a Revenue Cloud Billing license for supported editions. Microsoft Finance features can depend on the product version or feature flags. SAP describes exchanging payment and invoice information with S/4HANA Cloud for cash application. Check the relevant product documentation and implementation requirements before assuming a feature is available in a particular edition or tenant.
Quick Recap
Best Value
- FAST DOCUMENT SCANNING — Document scanner with feeder allows you to speed through stacks with a 50-sheet Auto Document Feeder (ADF); Efficient office scanner to help you scan more productively
- INTUITIVE, HIGH-SPEED SOFTWARE — Quickly scan with this desktop document scanner; Epson ScanSmart Software lets you easily preview scans, email files, upload to the cloud, and more; Plus, automatic file naming saves even more time
- SEAMLESS INTEGRATION — Easily incorporate your data into most document management software with the included TWAIN driver; Office document scanner integrates seamlessly with business workflows
- EASY SHARING — Duplex scanner allows you to scan straight to email or popular cloud storage2 services like Dropbox, Evernote, Google Drive, and OneDrive for simple storage and sharing
- SIMPLE FILE MANAGEMENT — Scanner allows the creation of searchable PDFs with Optical Character Recognition (OCR) and convert scans to editable Word or Excel files effortlessly; Designed for home and office document scanning
Rank #4
- OUR MOST ADVANCED SCANSNAP. Large touchscreen, fast 45ppm double-sided scanning, 100-sheet document feeder, Wi-Fi and USB connectivity, automatic optimizations, and support for cloud services. Upgraded replacement for the discontinued iX1600
- CUSTOMIZABLE. SHARABLE. Select personalized profiles from the touchscreen. Send to PC, Mac, mobile devices, and clouds. QUICK MENU lets you quickly scan-drag-drop to your favorite computer apps
- STABLE WIRELESS OR USB CONNECTION. Built-in Wi-Fi 6 for the fastest and most secure scanning. Connect to smart devices or cloud services without a computer. USB-C connection also available
- PHOTO AND DOCUMENT ORGANIZATION MADE EFFORTLESS. Easily manage, edit, and use scanned data from documents, receipts, photos, and business cards. Automatically optimize, name, and sort files
- AVOIDS PAPER JAMS AND DAMAGE. Features a brake roller system to feed paper smoothly, a multi-feed sensor that detects pages stuck together, and skew detection to prevent paper damage and data loss
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
