Cash application is the process of recording and applying incoming payments to the correct customer accounts in the accounting system. Cash application involves matching received payments to invoices or accounts receivable records. It ensures that payments are accurately recorded and applied to the correct customer accounts. Automated cash application software can streamline the process and reduce manual errors. Reconciling bank statements with cash application records is an...

AR stands for Accounts Receivable, which refers to the money owed to a company by its customers for goods or services provided on credit. AR represents the amount of money that customers owe to a company for goods or services purchased on credit It is an important aspect of a company's financial health and cash flow management AR is typically recorded as a current asset on the balance sheet until it is collected Monitoring and managing AR is crucial for ensuring timely payme...

OTC cycle refers to Order to Cash cycle, which is the process of receiving and processing customer orders to receiving payment. OTC cycle involves receiving customer orders, processing them, fulfilling the orders, and receiving payment. It includes steps like order entry, order fulfillment, invoicing, and payment collection. Efficient OTC cycle management is crucial for maintaining positive cash flow and customer satisfaction.