Match & Categorize Transactions
You can match and categorize the manually added bank transactions with the transactions in Zoho Books.
Every bank transaction that you manually record will be labelled as a manually added transaction. The Categorized and Matched labelling comes into picture when you have statement lines either by configuring automatic feeds or by importing statements.
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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,
- Go to the Banking module and go to the bank account that has uncategorized transactions.
- Select an uncategorized transaction and Zoho Books will list out the Best Matches and the Possible Matches for that transaction.
- Best Matches lists the transactions that are on the same date and with the same amount as the uncategorized transaction selected.
- Possible Matches lists all the transactions that were recorded since 90 days from the statement date. For example, if the statement date is March 1, 2019, then all transactions that were made till June 1, 2019 will be listed under Possible Matches.
- If there are many transactions listed under Possible Matches, they will be displayed as pages, enabling you to search for transactions easily. You can also set the number of transactions that must be displayed per page at the bottom.
- If you identify the transaction in the Best Matches, you can directly select Match and the statement line will be matched.
- In case, you identify the transaction in the Possible Matches, click the Select option.
- You can select multiple transactions as well. All the selected transactions will be listed at the top. Also, you can search for more transactions using the Filter while matching an uncategorized transaction against multiple transactions.
- If the amount in the selected transaction(s) is equal to the uncategorized transaction amount, you can click the Match button and the selected uncategorized transaction will be matched.
Adding Adjustment while matching
Scenario: You make payment through a Payment gateway and it charges you a certain percentage of amount as a 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 the matching.
For such cases, you can add adjustments while matching transactions.
Likewise, you can add an adjustment by using the Add Adjustment option which is prompted at the bottom. Here, you can enter any miscellaneous expense or sale that was not accounted.
- Select Add Adjustment.
- Fill in the particulars to record the adjustment.
|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.|
- Click OK.
The Adjustment is listed along with the selected transactions at the top and you can match it with the Uncategorized transaction. You can also remove an Adjustment by clicking Remove Adjustment.
- After the transaction is successfully matched, navigate to the All Transactions tab where you can find the transaction with its status as Matched.
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 the Filter icon on the Possible Matches bar.
- In the pop-up, enter the details to filter.
Pro Tip: If the selected Uncategorized transaction is a Deposit, the option Include Withdrawals is displayed in the Filter page. Check it if the filtered result must contain the Withdrawals as well when you are trying to match a Deposit.
|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.|
Pro Tip: If the selected Uncategorized transaction is a Withdrawal, the option Include Deposits is displayed in the Filter page. Check it if the filtered result must contain the Deposits as well when you are trying to match a Withdrawal.
Match Deposits with Withdrawals
In Zoho Books, you can match your deposits with withdrawals. Let’s consider 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,
- Select an Uncategorized transaction which is a Deposit.
- Click the Filter icon found on the Possible Matches bar.
- Fill the required details and check the Include Withdrawals option.
- Click Search.
The filtered list displays all the transactions including the Withdrawals.
- Select the Withdrawal which you would like to match.
- Click Match, provided the amounts are equal.
Match Withdrawals with Deposits
Similarly, you can 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 furniture 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,
- Select an Uncategorized transaction which is a Withdrawal.
- Click the Filter icon found on the Possible Matches bar.
- Fill the required details and check the Include Deposits option.
- Click Search.
The filtered list will display all the transactions including the Deposits.
- Select the Deposit which you would like to match.
- Click Match provided the amounts are equal.
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 transactions will be labelled as a categorized transactions.
In the pop-up page, start categorizing the transaction by entering and selecting the details from the drop downs provided in the form and click Save.
- After the transaction is successfully categorized, navigate to the All Transactions tab where all the categorized transactions will be listed.
Unmatch a Matched/Categorized Statement
To unmatch a transaction with a statement line,
- Go to the All Transactions tab.
- Select a 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 a 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.
Match Multiple Bank Statements
You can match multiple bank statements with one or more Zoho Books transactions at once. Here’s how:
- Go to Banking and select a bank account with uncategorised transactions.
- Click the Multi-select & Match toggle to enable multi matching of bank statements with Zoho Books transactions.
- Click Select against the transactions you want to match.
- The consolidated statement list will be displayed in a banner. In this banner you can:
- View all the statements or hide it by clicking Show All/Hide All.
- Unselect each transaction by clicking the Trash icon next to the transaction.
- Unselect all the selected transactions by clicking Clear Selection.
- Once you have selected the statements you want to match, click the option Click here to re-fetch the matching transactions. A list of the best possible matches will be displayed.
- Select the Zoho Books transactions that you want to match by clicking Select against the transactions.
- Click Match.
Notes: If the bank statement amount doesn’t match the Zoho Books transaction amount, you can create a new transaction with the difference amount and match them.
You can also choose to categorize these bank transactions manually. Here’s how:
- Select the bank transactions that you want to categorize.
- Go to the Categorize Manually tab.
- Enter the necessary details and click Match.