How it runs for manufacturers and wholesalers
A LedgerBPO cash-application specialist applies each receipt in QuickBooks Online Advanced, NetSuite or Cin7 to the exact invoices on the remittance, records each deduction with a reason code, flags unearned discounts, clears unapplied cash within the week and keeps customer statements and days sales outstanding accurate.
What is cash application?
Cash application means matching money received from customers to the invoices it pays and recording that in the accounting system. It covers bank receipts, checks, lockbox files, card payouts and remittance advices, including partial payments, deductions and payments with no reference. Done well, the aging is accurate and no customer is chased for an invoice they already paid.
What we handle for manufacturers and wholesalers
- Wires, ACH and lockbox receipts applied to the invoices on the remittance advice
- Retailer deductions coded by type: promotion, freight, shortage, compliance
- Unearned early-payment discounts flagged for follow-up or approval
- Partial payments and on-account receipts resolved within 5 business days
- Deduction trends by customer reported monthly
The KPI that matters here
Unapplied cash older than 5 business days held at zero.
Manufacturing compliance notes
Sales-tax exemption certificates
Resale certificates, manufacturing machinery and equipment exemptions and direct-pay permits each exempt a sale only when a valid certificate is on file at the time of sale or obtained within the state's grace period. We collect certificates at customer setup, store them against the customer record, track expiry dates and produce an exempt-sales report with certificate references for every period. Your preparer or Avalara files the return; we prepare the workings.
Cost of goods sold and inventory valuation
Inventory must be valued on a consistent method, whether FIFO, weighted average or standard cost with variances, and cost of goods sold must include the costs your CPA determines are inventoriable under IRS §471 and, above the gross-receipts threshold, §263A. We apply the method your CPA sets, reconcile the inventory system to the ledger monthly and document every adjustment, so year-end is a review rather than a rebuild.
Landed cost and import duty
Customs duty, tariffs, freight, insurance and brokerage on inbound goods are part of inventory cost and reach expense only when the goods are sold. We allocate these costs to receipts in Cin7, NetSuite or your ERP and post the same allocation in the ledger, so margin by product reflects what the goods actually cost to put on the shelf.
Multi-state nexus for wholesalers
A wholesaler with customers across states may have economic nexus in states where it makes no taxable sales, and still owe registration and returns to report exempt sales. We track sales by ship-to state and flag thresholds so you and your advisor can register where required. We do not give tax advice; we supply the numbers.
Manufacturing software we work in
- QuickBooks Online
- Sage Intacct
- Sage 50
- NetSuite
- Xero
- Bill.com
- Avalara
- Cin7
- Katana
- Fishbowl
- All 50 platforms
More for manufacturers and wholesalers
Other services for manufacturing
Frequently asked questions
What is the difference between cash application and accounts receivable?
Accounts receivable is the process of invoicing and following up; cash application is the specific step of matching each incoming payment to the invoices it settles and recording any difference. Poor cash application makes the aging wrong, so collectors chase paid invoices and miss real ones. We treat it as its own daily discipline with its own KPI.
How do you handle deductions from large retail customers?
Each deduction on the remittance is recorded against the invoice with a reason code, such as promotional allowance, freight, shortage or late-delivery penalty, and listed for your review. Valid deductions are cleared with a credit memo; invalid ones are disputed through the customer's claims process with documents attached. Trends by customer and cause are reported monthly.
Can you process lockbox files and remittance PDFs automatically?
Yes, lockbox files from your bank and remittance PDFs or emails are imported and matched to open invoices, with exceptions handled by the specialist the same day. Payments without a remittance are applied to the oldest invoices, flagged, and confirmed with the customer through the billing desk under your brand. The bank reconciliation service for manufacturers & wholesalers then confirms totals.
Ask an AI assistant to summarize this page
Opens the assistant with a prefilled prompt so you can check our claims against the page yourself.