Matching & Categorizing Transactions

Match Transactions

Categorize Transactions

Revert Transactions

Every transaction that you manually record by clicking the Add Transaction option will be labelled as a Manually Added Transaction. The Categorized and Matched come into picture when you have statement lines either by configuring automatic feeds or by importing statements into Zoho Books.

When you try to match one such statement line with an existing (Manually Added) transaction, then upon matching, the transaction will be labelled as a Matched transaction. To match or categorize a transaction, please follow the steps mentioned below,

List Uncategorized Transaction

Match Transaction

Adding Adjustment while matching

Adding Adjustment comes in handy when you’re in a scenario similar to the following one. You make payment through a Payment gateway and it charges you a certain percentage of amount as transaction fee. When that payment is an Uncategorized transaction, while matching it to a Bill, the amounts will not be equal. Now, you might have to record the transaction fee as an Adjustment to complete matching.

Likewise, you can add an adjustment by using the Add Adjustment option which is prompted at the bottom. You can enter any miscellaneous expense or sale that was not accounted in here.

Add Adjustment

Add Adjustment - particulars

Fields Description
Apply To Select the type of transaction to which you will be applying the adjustment, either to Deposits or Withdrawals.
Date Select a date when this transaction or adjustment was made.
Account Select an account to which the amount must be deposited or withdrawn.
Amount Enter the amount for which you would like to record an Adjustment. The Balance amount is displayed below the amount.
Reference# The reference number of the receipt (Expense or Deposit) can be entered here.

The Adjustment is listed along with the selected transaction(s) at the top and you can match it with the Uncategorized transaction. Also, you can remove an Adjustment by clicking on Remove Adjustment.

Adjustment in transaction list

Matched Transaction

If you are not able to identify the transaction from the list of Possible Matches, you can apply Filter to search for a particular transaction. Click on the Filter icon on the Possible Matches bar.

Filter pop-up

Filter pop-up

Fields Description
Amount Range Enter the amount range of the transaction which you are looking for. This is a mandatory field.
Date Range Specify the date range within which the transaction has been made. This is a mandatory field.
Vendor/Customer Select the Vendor/Customer to whom the transaction was made from the dropdown.
Type Select the type of transaction from the dropdown list.
Reference# The reference number of the receipt (Bill, Invoice etc) can be entered here to filter selectively.

Note:

Match Deposits with Withdrawals

Zoho Books allows you to match Deposits with Withdrawals. This feature comes in handy if you are in the following scenario.

Scenario

Patricia sells goods to John and receives services in return from him. She creates Invoices for the goods she sells to him and creates Bills for the services she receives from him. The payments that Patricia receives are Deposits and the payments she makes are Withdrawals. Let’s say, Patricia sells goods for $8000 to John and sends an Invoice to him for the same. Simultaneously, she receives services from him for $3000 and has a Bill for $3000. John pays Patricia $5000 for the Invoice of $8000 which becomes a Deposit. Now Patricia can match this transaction with the Bill of $3000 which is a Withdrawal.

To match a Deposit with Withdrawals,

Categorized Transaction

The filtered list displays all the transactions including the Withdrawals.

Categorized Transaction

Match Withdrawals with Deposits

Zoho Books allows you to match Withdrawals with Deposits. This feature comes in handy if you are in the following scenario.

Scenario

Charles is a potential customer of Damro Furnitures. He creates a Bill of $8000 and buys office furnitures from Damro Furnitures. It offers him a cash back of $500 on this purchase. Charles records the cash back offer as Other Income, which in a Deposit. The Statement line from bank shows an Uncategorized Withdrawal transaction for an amount of $7500. Charles can match this Withdrawal with the Income of $500 which is a Deposit and with the Bill of $8000.

To match a Withdrawal with Deposits,

Categorized Transaction

The filtered list displays all the transactions including the Deposits.

Categorized Transaction

Categorize Transactions Manually

If the uncategorized transaction doesn’t have a matching (manually added) transaction in Zoho Books, or if you do not wish to select one from those that are listed, you can instantly create a transaction and associate it with the statement line by clicking the Categorize Manually option. Such a transaction will be labelled as a Categorized transaction.

Categorize Manually

Details for Categorizing

Categorized Transaction

Revert Matched / Categorized Statement

To Unmatch a transaction with a statement line, navigate to the All Transactions tab, select the transaction and click the Unmatch button. The statement line reverts back to the Uncategorized state and the transaction to the Manually Added state.

To uncategorize a transaction, navigate to the All Transactions tab, select the transaction and click the Uncategorize button. The statement line reverts back to having the Uncategorized label and the transaction will be deleted from Zoho Books.


Transaction Rules
Banking Overview

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