---
title: "Unapplied cash: definition | Rex glossary"
description: "Payments received but not yet matched to specific invoices, left sitting on the customer's account or in a suspense account."
canonical: https://www.rex.inc/glossary/unapplied-cash
---

# Unapplied cash

Payments received but not yet matched to specific invoices, left sitting on the customer's account or in a suspense account.

Cash goes unapplied when the remittance is missing, the payer can't be identified, the amount doesn't match any combination of open invoices, or one payment covers many invoices with deductions taken.

It distorts everything downstream. The customer looks overdue on invoices they've paid, collections chases the wrong balance, and DSO is overstated until the cash is applied.

How Rex helps

Cash application

Research agents match low signal payments to invoices.

[See how it works](https://www.rex.inc/cash-application)

## Related terms

- [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)
- [Remittance advice The details a customer sends with or alongside a payment, saying which invoices it covers and explaining any deductions.](https://www.rex.inc/resources/glossary/what-is-remittance-advice)
- [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.](https://www.rex.inc/glossary/on-account-payment)
- [AR subledger The customer-by-customer record of open invoices, credits and payments that rolls up to the accounts receivable balance in the general ledger.](https://www.rex.inc/glossary/ar-subledger)

Next step

Accelerate your receivables operation with Rex

A short walkthrough of agents working your accounts under your guardrails, with your team on the exceptions.

[Learn more](https://www.rex.inc/learn-more)

[Back to the glossary](https://www.rex.inc/glossary)