Matching is the process that pairs a bank record with a general ledger record (or sometimes multiple records). For example, a cleared check on the bank side is matched with the issued check on the general ledger side. These records are either time-based exceptions (a deposit in transit or an outstanding check, both of which will have a match once enough time passes) or permanent exceptions that should trigger an investigation.
What creates a match
Matches are created based on attributes. For example, check number to check number and amount to amount are very basic two-attribute matches used for checks. For more information, see 'Types of Matches'.
Bank Reconciliation makes one pass through the unmatched records looking for matches for each set of matching rules turned on. For example, by default, check to check, void to issue, and non-check are turned on. Bank Reconciliation will attempt to match the data using three separate passes. It will apply the check-to-check rules for the first pass, void-to-issue for the second pass, and non-check matching for the last pass.
The 'Automatic Transaction Matching' process is a series of matching passes (also called rules or subroutines). These passes can be turned on or off to fit your particular situation.
From the home page, click on the Matching Rules icon in the right side of the ribbon bar.
By default, 'Check to Check', 'Void to Issue', and 'Non-Check matching' are on and 'Many to Many' and 'Alphanumeric Matching' are off.
Possible Settings: On or Off
Attributes: Records are matched using check number and amount.
The match will be a cleared check from the bank to an issued check on the general ledger.
Sign of the checks must be the same (negative to negative). A cleared check will not match a voided check, even if the amounts and check numbers are the same as the signs will be different.
Cleared check on bank side without corresponding entry on general ledger is marked "Check Cleared bank, no G/L record" (Exception #310).
Cleared check on bank side already matched against the general ledger (regardless of amount) is considered a duplicate clearing check and is marked "Check cleared more than once" (Exception #115).
Cleared check on bank side matched an entry in the general ledger, but the amounts do not match is marked "Bank amount differs from G/L amount" (Exception #110) on bank side and "G/L amount differs from Bank amount" (Exception #210) on general ledger side.
All remaining issued checks are marked as Outstanding Checks (Exception #498).
Possible Settings: On or Off
Attributes: Records are matched using using check number and amount from void check to same fields of issued check. Records are general ledger to general ledger.
This type of matching occurs solely in general ledger data. A check number and amount of an issued check will be matched to a check number and amount of a voided check.
Voided check amounts should be positive; issued check amounts should be negative.
A voided check with no corresponding issued check is marked "Voided check, no record of issuance" (Exception #410).
A voided check with a corresponding issuance that has already been matched (to a cleared check or a previously voided check) is marked "Voided check duplicate" (Exception #415).
A voided check with a corresponding issuance but differing amounts is marked "Amount on issued check differs from amount voided" (Exception #420/#425).
Note: All unsuccessful void to issue matches are considered to be high risk exceptions.
Possible Settings: On or Off
Attributes:Reference code in Matching_Field or Text1 and amount
Note: To use Alphanumeric Matching, you must turn off 'Non-Check Matching'. (See Note at bottom.)
Alphanumeric Matching uses either 'Matching_Field' or 'Text1' as a unique reference field to match records. Either field can be mapped for this purpose, but Bank Reconciliation will not allow you to map both (this would be the same as giving the same name to two entirely different things). Each non-check transaction on the bank side is matched to a similar record on the general ledger using the reference code and amount.
For a match to be successful, both records must have the same reference code and contain equal amounts. Both amounts can be either positive or negative. In addition, the records may not contain a check number, and the reference code should be at least one character long.
Records with a check number are not matched using this process. Checks are matched in the Check-to-Check and Void-to-Issue processes. Also, records with no entry in the reference field will by definition not be matched by this process.
Note: Non-Check Matching must be turned off or the matching by the Non-Check pass will mark these records according to those rules and not apply Matching_Field as a match attribute. See 'Non-Check Matching' for information on non-check rules. See 'Types of Matches' for instructions on toggling the matching options.
Alphanumeric 2 and 3 field matching
The Alphanumeric 2 and 3 matching rules operate similar to the Alphanumeric matching rule, but add additional fields.
Alphanumeric 2 matching rule matches Bank to G/L records based on an exact match of the following fields:
Alphanumeric 3 matching rule matches Bank to G/L records based on an exact match of the following fields:
--It does not matter which field is mapped Text 1 vs Text 2, etc.
--Use 'Text 1' (not 'Matching Field') to map your first field.
--There must be a value (no blanks) in each of the text fields mapped in order for them to be matched.
--If you have three text fields to match, of course use Alphanumeric 3. Do not also use Alphanumeric 2, as it would then ignore the third field, and give you unintended matches.
--If you have more than three text fields to base a match, we suggest consolidating the data prior to importing into Bank Reconciliation.
Possible Settings: On or Off
Attributes: Records are matched using using amount, site number, and that the records are within the data range.
Transactions are grouped on the Bank and G/L by site. If site is not used, all sites are grouped into the default site group (0).
For each Bank record, the system looks for an equal amount on the G/L side. It then qualifies the record(s) by examining the business days (weekdays) between the two dates. See 'Adjusting the Data Range' for information on modifying the range.
If multiple Bank transactions satisfy multiple general ledger transactions, both sides are matched sequentially in ascending date order.
Without matching on the group number, there is a possibility of a false positive match. For example, two deposits are made on the same day, one in the morning, one in the afternoon, each for $100. The bank clears one deposit (made in the morning) the next day, while the afternoon deposit clears two days later. Bank Reconciliation may cross match the deposits, as the general ledger deposit date was the same.
However, if the bank deposits were on sequential days the system would not cross match the records as the system would work with records in an ascending date order on both sets of data.
Unmatched Bank records are marked either "Unrecorded bank deposits" (Exception #335) or "Unrecorded bank withdrawals" (Exception #340).
Unmatched general ledger records which decrease the account balance are marked as '"General ledger reduced, no bank entry" (Exception #230).
Unmatched general ledger records which increase the account balance are marked either "Deposits in Transit" (Exception #240) or "Missing Deposit" (Exception #220). The exact exception generated depends on the date range.
Typically, matches are 'in balance', meaning that the sum of the Bank records equals the sum of the General Ledger records, within a match group.
However, there are times when records need to be matched, but they are out of balance.
The most common scenarios are when:
--cash is deposited at a retail location (internal G/L records), but when the bank counts the deposit, it is slightly different, and
--when credit card fees are calculated, but there are minor differences in merchant fees (card not present, card classification, etc.)
Note: If you don't want to allow out-of-balance matches, simply do nothing (see below). If your users need to match records, they can 'Add a Record' and then include this added record within the match group.
Out-of-balance matching is available once you've migrated from our trial Desktop to either SQL Express or SQL Server.
Specifying an allowance (tolerance):
In order to use this feature, you must first specify an allowance. Settings > 'Import, Matching, System' > Match.
Below we entered $1,000 as our allowance (of course, your allowance will differ).