A payment from the customer for goods or services is the final step in Accounts Receivable process. Any payment received from the customer must be matched against an Invoice for the Invoice to be considered as closed.
This poses an unique problem because in typical scenario, payments are not always one to one i.e. one payment transaction per invoice. Variety of scenarios are possible wherein one can receive combined payments for multiple invoices or partial payment for single invoice and many more.
Any payment received that cannot be tagged to an Invoice immediately are kept in “on-hold” state until it is matched correctly with respective Invoices. This activity is critical because prolonging reconciliation may result in certain invoices going overdue and result in unwarranted issues with customer.
NOTE: This KPI is insensitive to time context. Any payment that is un-reconciled must be reported at all times.
Example of the Unreconciled payments
|Un-Reconciled Payments Value||$23,450|
|Number of Payments||14|