Process accounts receivable (AR)

Trigger: The business receives a customer payment or remittance advice via mail, lockbox, or electronic transfer.

1. Receive and capture payment information
2. Extract and review remittance details
3. Match the payment against open customer invoices
4. Resolve discrepancies and manage unapplied cash
5. Post applied payments to the customer account and general ledger
6. Reconcile daily accounts receivable receipts with bank deposits

Outcome: The received funds are accurately applied to the customer's account, clearing the outstanding receivable and posting the transaction to the general ledger.