13 Everyday Remittance Scenarios: Unlucky for Cash Application?

This e-book is an actionable summary that drills down the challenges in remittance processing and best-practices to build a robust remittance processing workflow for checks and e-payments


Chapter 01

Executive Summary

Chapter 02

13 Everyday Remittance Scenarios

Chapter 03

AI-enabled Remittance Capture

Chapter 04

About HighRadius
Chapter 01

Executive Summary

Is Your Cash Application Slow And Error-prone?

Complex remittance processing could be the reason

Straight-through processing is when payments are posted against open invoices in your ERP without any manual intervention.

As per a survey by NACHA-CRF 67.5% respondents have less than 60% straight-through posting. Adoption of varied e-payment formats and non
standardized remittance details could be the reasons for these low numbers.

Payment Trends

What Ideal Remittance Processing Should Resemble

A well-oiled assembly line


Remittance processing assembly line

In a perfect world, the A/R department would receive all its check payments with remittance details keyed-in by the bank and all its e-payments accompanied with standardized remittance advice that could directly be reconciled for cash posting. The direct match between the invoice numbers on the remittance and invoices would create a true straight-through process.


Picture About Ideal Remittance Processing

The Real Picture of Remittance Processing

Too much variability in remittance scenarios


Due to the lack of any standardization, remittances continue to come from various sources and in various formats and templates. Each remittance scenario has a series of variable tasks, which prevent analysts from achieving the rhythm of an assembly line.

An AS-IS evaluation of cash application process indicates that most of the variability lies in two steps:

       1. Remittance fetching

       2. Interpretation of data



Picture of Remittance Processing
The consequences of this variability are:

Error-prone process

A highly manual and repetitive process leads to erroneous cash posting and additional burden on analysts for resolving exceptions.


Delayed cash posting

Time consuming activities of fetching and entering data slows down the cash application process. Analysts struggle to post cash the same day during
seasonal spikes.

Low employee morale

High volume of low-value tasks without any strategic impact reduce cash application analysts to cash application clerks. Their entire days are spent chasing transactions and spreadsheets.


Features of eBook



Cash Application in Latin America


What to think and what not to Boleto. Heard of the term? Maybe.…

3 min


How Zurich Leveraged AI to ‘Insure’ 85%…


About Zurich Zurich Insurance Group Ltd. is a Swiss insurance company, commonly known…

4 min


Remittance Capture & Data Aggregation: 4 Strategies…


About Blackhawk Blackhawk Network, with its headquarters in California and 1000+ employees, operates…

2 min