Understanding Ai-Based Cash APplication For Order-To-Cash Solutions


The rise of automation and Artificial Intelligence (AI) has had monumental and lasting impact on the finance operations of many businesses. AI is now ubiquitous in finance, from budgeting and forecasting to financial close and account reconciliation. However, one of the most significant and perhaps underrecognized areas for Artificial Intelligence usage is the Order-to-Cash (OTC) process. If leveraged correctly, an AI-based Cash Application can transform an OTC unit from highly manual and tedious activity to an automated and efficient process that streamlines the overall finance operations.

What Does AI-Based Cash Application Do?

AI-based Cash Application serves as core component of an OTC process and specifically addresses the challenge of cash application. Today, many organizations use labor-intensive, manual processes to identify and match customer payments to the applicable invoices. To make matters worse, RPA and other automation tools are not sophisticated enough to support end-to-end cash application, leaving this task to be done manually. That is, until now. AI-based Cash Application is designed to recognize invoice and payment data and match it with high degree of accuracy. It is also capable of analyzing and interpreting data to suggest previously unrecognized matches, which are then confirmed by finance user. This automation eliminates up to 84% of manual effort required for reputable cash application.

Benefits of AI-Based Cash Application

By leveraging AI to drive cash application, there are tremendous benefits to be gained across the organization. First and foremost, there is substantial improvement in the accuracy and speed of cash application. With AI-based Cash Application, the system is able to quickly and accurately match payments to the applicable invoices, significantly reducing the likelihood of manual errors. With greater accuracy, organizations can reduce their days sales outstanding (DSO) and improve their cash collection significantly.

In addition, by automating the cash application process and reducing manual work, AI-based Cash Application can help organizations save time, as well as money. It can also greatly reduce manual labor in the OTC process, allowing employees to utilize their time more appropriately. With more time and fewer resources allocated to mundane tasks, employees can focus on higher-value initiatives, such as strategy and customer experience, thus contributing more to the companies bottom line.

Choosing an AI-Based Cash Application Solution

When selecting an AI-based Cash Application solution for your OTC process, there are several factors to consider. You must ensure that the platform you select is capable of deploying AI models to accurately and quickly match payments to the relevant sales invoices. Additionally, you should seek solution that is easy to set up and configure, one that is backup and disaster-recovery ready, and one that can integrate with any ERP system. Lastly, you should consider scalability, as the size of your company and customer base will likely grow over time.


AI-based Cash Application is revolutionizing the Order-to-Cash process by providing organizations with solution that automates and streamlines the entire process. With shift to AI-driven cash application, organizations can realize improved accuracy, reduced DSO, and reduced manual labor. When selecting an AI-based Cash Application solution, organizations should ensure that the product is capable of deploying AI models, is easy to set up and configure, can integrate with any ERP, and is scalable to support future growth. Ultimately, when leveraged properly, AI-based Cash Application could significantly improve the efficiency of your OTC process.