Processing Bank Transactions Using an Automated Process

Once a bank statement has either been imported or manually entered into the system, it can be reconciled to match the applicable system documents, such as supplier invoices, sales invoices, refunds, BACS runs, etc.

The bank reconciliation process can either be carried out manually (where you match individual transactions on the bank statement to the documents in the system) or using an automatic system rule, which carries out this process for you with the option to check the results.

This topic describes how to carry out a bank reconciliation using an automated process. For more information on the manual method, please see Reconciling Bank Transactions.

There are two automatching methods that can be used to reconcile bank transactions, both methods match by date and amount automatically but additional matching criteria can be selected. Please select from the following:

Using Auto Reconciliation Match One to One

Using Auto Reconciliation Advanced

Using Auto Reconciliation Match One to One

You can use the Match One to One option to automatically reconcile transactions on the bank statement to transactions in the system at a basic level. As a minimum the transactions are matched on date and amount, then in addition with one analysis field. If you want to reconcile transactions using more than one analysis field then you need to use the advanced method. For more information, please see Using Auto Reconciliation Advanced.

  1. Select Banks, then select Bank Reconciliation from the menu.
  2. The Bank Reconciliation wizard is displayed. select Drill (...) in Bank Account, then double-select to select the required bank account from the Select a bank account dialog.
    bank-reconciliation-bank-account.png

  3. The account number of the selected bank is displayed in Bank Account. Select Auto Reconciliation, then select Match one to one.

    Ensure Advanced is not selected.

  4. Transactions are automatically matched on date and amount but also require additional criteria to be selected to determine matches. Select which analysis field with which you want to match transactions from the Match On: drop-down list. The following options are available:

    None - tries to match transactions based on amount and date.
    PSF_BUDGET - tries to match transactions against the value in the PSF_Budget analysis field.
    Chase Letter Level - tries to match the transactions against the value in the Chase Letter Level analysis field.
    DAF_Source Detail ID - tries to match the transactions against the value in the DAF_Souce Detail ID analysis field.
    DAF_Reason - tries to match the transactions against the value in the DAF_Reason analysis field.
    DAF_ReasonDetail - tries to match the transactions against the value in the DAF_ReasonDetail analysis field.
    DAF_Source Doc Ref - tries to match the transactions against the value in the DAF_Souce Doc Ref analysis field.

  5. When you have selected the criteria on which you want transactions matched, select Next.

  6. The Manual Match page is displayed. Bank statement transactions that have not yet been reconciled are displayed in the left-hand panel, and cashbook transactions that have not yet been reconciled are displayed in the right-hand panel.

    • If an exact match is found for the transaction, a green Tick icon is displayed in the Confirm Match column against the bank and cashbook transaction.

    • If more than one possible match for the transaction is identified, an orange Question Mark (?) icon is displayed in the Confirm Match column. When you select the transaction, the possible matches are also highlighted in orange.

    The system does not try to match transactions if there is no match on date and amount.

    If there is more than one possible match for the transaction or there is no match on date and amount with a transaction on either the bank statement or cashbook, you need to manually match the transaction. Select the bank statement transaction, then the cashbook transaction to which it is to be reconciled (you can select multiple transactions to be reconciled by holding down the Ctrl key), then select MATCH ITEMS. For more information, please see Reconciling Bank Transactions.

  7. When you have selected the required transactions to be matched, select Next.

    If you accidentally match incorrect items or the system has a possible match for a transaction but none of the possible matches are correct, select the transaction, then select CLEAR MATCH. Selected transactions must balance to 0.00 in order to be reconciled. The difference between the transactions is displayed in Difference, as shown in the following graphic. If the difference is not 0.00, the difference value is displayed in red and must be corrected as described in Reconciling Transaction Variances.

  8. The Summary page is displayed. The transactions that have been matched for reconciliation are displayed. Check the details of the matched items, then select Reconcile to confirm the matched transactions.

    Details of the matched transactions can be displayed by selecting Expand (+) adjacent to required transaction.

  9. The Report page is displayed. (Optional) You can select the details on which you want to run the reconciliation. For more information, please see Producing a Bank Reconciliation Report.
  10. When you have run the report, or if you do not want to run a Bank Reconciliation Report, select Finish.

Using Auto Reconciliation Advanced

You can use the Advanced option to automatically reconcile transactions on the bank statement to transactions in the system at a more detailed level. As a minimum the transactions are matched on date and amount, then in addition you can match on specific criteria and analysis fields, determining how accurate a match you want the system to try and make.

  1. Select Banks, then select Bank Reconciliation from the menu.
  2. The Bank Reconciliation wizard is displayed. select Drill (...) in Bank Account, then double-select to select the required bank account from the Select a bank account dialog.
    bank-reconciliation-bank-account.png

  3. The account number of the selected bank is displayed in Bank Account. Select Auto Reconciliation, then select Advanced.

    Ensure Match one to one is not selected.

  4. Transactions are automatically matched on date and amount but also require additional criteria to be selected to determine matches. The Criteria 1 and Criteria 2 panels are displayed, where you can set additional criteria or analysis fields on which you want the system to use to determine matches.

    To remove a Criteria panel, select X in the top right-hand corner of the panel. If you want to match on more criteria, select Add to display an additional Criteria panel

     

  5. In the Criteria 1 panel, from the Value 1 drop-down list, select the option on which you want to match the cashbook transaction to the bank transaction. The following options are available:

    Cashbook Document Type - tries to match the cashbook transaction by the document type.
    Cashbook Document Number - tries to match the cashbook transaction by the document number.
    Cashbook Description - tries to match the cashbook transaction by the description.
    Cashbook Userfield 1 - tries to match the cashbook transaction by information entered in Userfield 1.
    Cashbook Userfield 2 - tries to match the cashbook transaction by information entered in Userfield 2.
    Cashbook Userfield 3 - tries to match the cashbook transaction by information entered in Userfield 3.
    Cashbook PSF_BUDGET - tries to match the cashbook transactions against the value in the PSF_Budget analysis field.
    Cashbook Chase Letter Level - tries to match the cashbook transactions against the value in the Chase Letter Level analysis field.
    CashbookDAF_Source Detail ID - tries to match the cashbook transactions against the value in the DAF_Souce Detail ID analysis field.
    Cashbook DAF_Reason - tries to match the cashbook transactions against the value in the DAF_Reason analysis field.
    Cashbook DAF_ReasonDetail - tries to match the cashbook transactions against the value in the DAF_ReasonDetail analysis field.
    Cashbook DAF_Source Doc Ref - tries to match the cashbook transactions against the value in the DAF_Source Doc Ref analysis field.


  6. From the Value 2 drop-down list, select the option on which you want to match the bank transaction to the cashbook transaction. The following options are available:

    Statement Sheet - tries to match the bank transaction by the sheet number.
    Statement Line - tries to match the bank transaction by the sheet item line.
    Statement Description - tries to match the bank transaction by the description.
    Statement PSF_BUDGET - tries to match the bank transactions against the value in the PSF_Budget analysis field.
    Statement Chase Letter Level - tries to match the bank transactions against the value in the Chase Letter Level analysis field.
    Statement DAF_Source Detail ID - tries to match the bank transactions against the value in the DAF_Souce Detail ID analysis field.
    Statement DAF_Reason - tries to match the bank transactions against the value in the DAF_Reason analysis field.
    Statement DAF_ReasonDetail - tries to match the bank transactions against the value in the DAF_ReasonDetail analysis field.
    Statement DAF_Source Doc Ref - tries to match the bank transactions against the value in the DAF_Source Doc Ref analysis field.


  7. Next, select the Strength on which you want the match to be based. The following options are available:

    Weak - tries to match values select for Value 1 and Value 2 based on a partial match on an item. For example, if the description was Fixed Asset on the statement but Asset on the cashbook, the system would match on Asset.
    Medium - only matches if the values selected for Value 1 and Value 2 match on an item that is similar. For example, if the description was Fixed Asset on the statement but Asset June 2021 on the cashbook, the system would match on Asset.
    Strong - only matches if the values selected for Value 1 and Value 2 match on more than one item. For example, if the description was Fixed Asset on the statement but Fixed Asset June 2021 on the cashbook, the system would match on Fixed Asset.
    Exact - only matches if the values selected for Value 1 and Value 2 are an exact match.

  8. If matching on more than one type of criteria or analysis field, in the additional criteria panel, e.g. Criteria 2, select whether you want the system to match on all criteria or either criteria. Select an option from the following:

    And - the system tries to match transactions based that match the options select for all criteria panels.
    Or - the system tries to match transactions based on either of the options selected for the criteria panels.

  9. Complete the details for any additional criteria panels, as detailed in steps 5 - 8, then select Next.

  10. The Manual Match page is displayed. Bank statement transactions that have not yet been reconciled are displayed in the left-hand panel, and cashbook transactions that have not yet been reconciled are displayed in the right-hand panel. Depending on the strength selected for the matching criteria, the following scenarios could be displayed.

    If the matching criteria strength was set to Exact, only transactions where the system has been able to find an exact match for the criteria selected on both the cashbook and bank statement, is displayed with a green Tick icon in the Confirm Match column against the bank and cashbook transaction.

    If the matching criteria strength was set to Strong, Medium, or Weak, transactions are displayed with either a green Tick icon in the Confirm Match column if the system identified it as an exact match, or an orange Question Mark (?) icon if the system has identified more than one possible match for the transaction. When you select a possible match transaction, the possible matches are also highlighted in orange.

    The system does not try to match transactions if there is no match on date and amount.
    If there is more than one possible match for the transaction or there is no match on date and amount with a transaction on either the bank statement or cashbook, you need to manually match the transaction. Select the bank statement transaction, then the cashbook transaction to which it is to be reconciled (you can select multiple transactions to be reconciled by holding down the Ctrl key), then select MATCH ITEMS. For more information, please see Reconciling Bank Transactions.

  11. When you have selected the required transactions to be matched, select Next.

    If you accidentally match incorrect items or the system has a possible match for a transaction but none of the possible matches are correct, select the transaction, then select CLEAR MATCH.

    Selected transactions must balance to 0.00 in order to be reconciled. The difference between the transactions is displayed in Difference, as shown in the following graphic. If the difference is not 0.00, the difference value is displayed in red and must be corrected as described in Reconciling Transaction Variances.

  12. The Summary page is displayed. The transactions that have been matched for reconciliation are displayed. Check the details of the matched items, then select Reconcile to confirm the matched transactions.

    Details of the matched transactions can be displayed by selecting Expand (+) adjacent to required transaction.

  13. The Report page is displayed. (Optional) You can select the details on which you want to run the reconciliation. For more information, please see Producing a Bank Reconciliation Report.
  14. When you have run the report, or if you do not want to run a Bank Reconciliation Report, select Finish.