---
title: "On-account payment: definition | Rex glossary"
description: "A payment recorded against a customer's account as a whole rather than specific invoices, usually until it's clear what the payment is for."
canonical: https://www.rex.inc/glossary/on-account-payment
---

# On-account payment

A payment recorded against a customer's account as a whole rather than specific invoices, usually until it's clear what the payment is for.

Posting cash on account is a holding step: the customer's balance goes down, but individual invoices stay open. It's common for prepayments and for payments that arrive without usable remittance.

Left too long, on-account balances make aging reports misleading and statements confusing, so they need regular follow-up until they're applied.

## Related terms

- [Unapplied cash Payments received but not yet matched to specific invoices, left sitting on the customer's account or in a suspense account.](https://www.rex.inc/glossary/unapplied-cash)
- [Cash application Matching incoming payments to the open invoices they pay and posting them in the ERP, so receivables and cash stay accurate.](https://www.rex.inc/resources/cash-application/what-is-cash-application)
- [Statement of account A summary sent to a customer listing every open invoice, credit and payment on their account, with the total balance due.](https://www.rex.inc/resources/templates/statement-of-account-template)

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