The Invoice-to-Cash Cycle
From invoice creation to cash posting, several steps can be automated: invoice approval, delivery to customer, dunning for overdue amounts, payment application, and reconciliation.
Step 1: Invoice Creation and Delivery
Workflow can trigger when an invoice is created: send e-mail to customer, create a task for collections if past due date. Use customer-specific templates.
Step 2: Dunning Workflow
Create a workflow or scheduled script that identifies overdue invoices and escalates: first notice at 30 days, second at 45, final at 60. Update customer status or add tasks for collector.
Step 3: Payment Application
For lockbox or electronic payments, use CSV import or bank feed. Workflow can flag payments that don't match invoices for manual review.
Step 4: Cash Application Automation
NetSuite's cash application tools can auto-apply payments by invoice number, amount, or reference. Workflow can route unapplied cash to a queue for manual handling.
Best Practices
- Set clear payment terms and enforce consistently
- Automate dunning with customer-friendly messaging
- Reconcile bank feeds daily
Financial & Accounting services at YRK Consulting include AR workflow design and optimization.