Auto-match rate
The share of incoming payments applied to invoices automatically, without anyone researching the remittance by hand.
Match rate is the headline metric for cash application. Simple payments, for one invoice at the exact amount with a clear reference, match easily. The rest need research: partial payments, missing remittances, deductions and payments that cover dozens of invoices.
Raising the rate means getting better at those hard cases, not loosening matching rules, which risks applying cash to the wrong invoice.
Related terms
- Cash applicationMatching incoming payments to the open invoices they pay and posting them in the ERP, so receivables and cash stay accurate.
- Unapplied cashPayments received but not yet matched to specific invoices, left sitting on the customer's account or in a suspense account.
- Remittance adviceThe details a customer sends with or alongside a payment, saying which invoices it covers and explaining any deductions.