Reviewing the SAP Cash Application Daily Process Flow

The SAP Cash Application process is typically triggered after the bank account statement has been imported into SAP and after the pre-defined note to payee interpretation rules and configured clearing rules have been executed in the payment lot run. Any open bank statement items along with open receivables are transferred through secure connections to the SAP Cash Application so that the Machine Learning model can infer matching proposals. Shortly after, the matching proposals are retrieved from the SAP Cash Application and any matching proposals that are over the auto-clearing accuracy threshold set in configuration are cleared automatically. Any matching proposals under the auto clearing accuracy threshold are visible to the cash reconciler through the SAP post-processing apps or programs. Only the proposals which are under a certain threshold are not displayed at all. This leaves only the absolute minimum of clarification cases for manual processing.

• The bank account statement is typically imported into SAP on a daily scheduled basis. When the bank account statement is imported the contained data is transferred to the payment lot. During the transfer the ruled based note to payee interpretation takes place.
• When a payment lot gets posted the configured clearing rules are used. In case the note to payee did not provide sufficient information to find the suitable open invoice a clarification case for manual clarification of the incoming payment is created.
• The AR accountant works on manually executing the clarification of those cases which can be very time consuming.

This slide shows the daily process when using SAP Cash Application.

• The start of the process is exactly the same as when not using SAP Cash Application. The bank account statement gets imported into SAP and afterwards the items get transferred into a payment lot using the configured note to payee interpretation rules.
• The posting of the payment lot uses the customized clearing rules in order to match the incoming payment correctly to the open invoices.
• Incoming payments which could not be matched to any open invoice, and create a clarification case, are sent to SAP Cash Application using transaction FPB7. With the creation of the clarification cases, the items are first of all  blocked for Cash Application processing. After the Cash Application processes are complete then any items that are still open are available for manual processing again.
• The SAP Cash Application sends back matching proposals. During the processing of the items in SAP Cash Application, the clarification cases are locked for manual clarification as they are worked on by the Machine Learning service.
• Dependent on the confidence level of the sent matching proposals the incoming payments are either automatically posted to open items or the proposal is only displayed and ready for the accountant to look at and post.
• Only cases where no matching proposal can be provided will be executed manually by the AR accountants. The integration of the proposals into the known clarification case programs/apps eases the usage of the SAP Cash Application as no new apps/programs need to be learned by the accountants.