Payments That Close Their Own Invoices
When an ACH payment lands, Fintra applies it to the open invoice and closes the receivable - so AR aging and DSO stay accurate without a manual matching pass.
What cash application in Fintra does
Cash application is the unglamorous work of matching money received to the invoice it pays. Done by hand it is slow and error-prone, and until it is done your AR is wrong. Fintra applies incoming ACH payments to the open receivable automatically, so the invoice closes, the balance updates, and aging and DSO reflect reality the moment the cash lands.
- ACH payments applied to the open invoice on the ledger
- The receivable closes and the balance updates automatically
- AR aging and DSO recompute from the new balances
- Normalized transfer status shows pending, completed, returned, or failed
From payment to closed receivable
What happens when cash lands
- 1
Payment received
An ACH payment settles against the invoice via Increase.
- 2
Apply to invoice
Fintra applies it to the open receivable on the ledger.
- 3
Close the balance
The invoice balance drops; a full payment closes it.
- 4
Update aging
AR aging and DSO recompute from the new balances.
Know where every payment stands
Reconciled and auditable
- Cash and AR reconcile because they share the ledger
- Every application and reversal is logged
- Aging and DSO stay accurate without a manual matching pass
- The collections agent reads the true, post-application aging
Frequently asked questions
What is cash application?
Cash application is matching incoming payments to the invoices they pay so the receivable closes. Until it is done, AR is inaccurate. Fintra applies ACH payments to the open invoice automatically, so the balance updates and aging and DSO stay correct the moment cash lands.
How does Fintra reconcile payments to invoices?
When an ACH payment settles through Increase, Fintra applies it to the open receivable on the ledger, reducing the balance and closing the invoice when fully paid. Because cash and AR share one ledger, they reconcile by construction rather than through a separate matching step.
What happens if a payment is returned?
The transfer status normalizes to returned, and the receivable reopens so it surfaces for follow-up. That keeps your AR honest - a returned payment does not silently leave an invoice marked paid - and the collections agent will see the account in its aging.
Does cash application keep DSO accurate?
Yes. Because payments apply to invoices as they settle and aging recomputes from the new balances, DSO reflects real collections without waiting for a manual reconciliation pass. Your receivables metrics are current rather than lagging the cash.
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Let payments close their invoices
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