Match & Categorize Transactions

If you have enabled bank feeds for your bank account or if you import your bank statement to Zoho Books, you can match or categorize the bank transactions added to Zoho Books. You have to match or categorize these bank transactions to ensure that they match the transactions created in your Zoho Books organization. This will help you to reconcile your bank statements easily.


Match Transactions

Matching transactions is the process in which you match a bank statement with a transaction created in your Zoho Books organization. Here’s how:

Click the View By filter

Pro Tip: If an uncategorized transaction meets the criteria to match with a transaction in your Zoho Books account, the Match found tag will be displayed next to it.

Click Match next to the transaction Select the required possible matches

Pro Tip: If there are many transactions listed under Possible Matches, there will be multiple pages. You can set the number of transactions per page.

The uncategorized transaction will be matched and you can view the matched transactions in the Matched Transactions section. Here’s how:

Click Matched from the All Transactions dropdown

All the matched transactions will be available here.

All Matched transactions

Adding Adjustment while matching

Scenario: When you make payments through a payment gateway, you will be charged a certain percentage of the payment amount as a transaction fee. While trying to match such payments to a bill, the amounts will not be equal. For such cases, you can record the transaction fee as a new transaction.

To add a new transaction while matching a transaction:

Click + Create New Transaction
Fields Description
Apply To Select the type of transaction to which you will be applying the adjustment; Deposits or Withdrawals.
Date Select the date when this transaction or adjustment was made.
Account Select the account to which the amount must be deposited or withdrawn.
Amount Enter the amount that you want to add as adjustment. The Balance amount is displayed below the amount.
Reference# The reference number of the receipt (expense or deposit).
Enter the transaction details in the pop-up

The new transaction will be listed along with the selected transactions and you can match it with the uncategorized transaction. Click Delete Transaction to remove the new transaction.

Click Delete Transaction

If you are not able to identify the transaction from the list of possible matches, you can apply a filter to search for a particular transaction. Here’s how:

Click the Filter icon
Fields Description
Amount Range Enter the amount range of the transaction which you are looking for.
Date Range Specify the date range within which the transaction has been made.
Vendor/Customer Select the vendor or customer for whom the transaction was created.
Type Select the type of transaction from the dropdown list.
Reference# The reference number of the receipt (bill, invoice, etc.,).
Enter the required details to filter transactions

Pro Tip:

  • If the selected uncategorized transaction is a deposit, check the Include Withdrawals option in the filter if you want the filtered result to also include withdrawals when you are trying to match a deposit.
  • If the selected uncategorized transaction is a withdrawal, check the Include Deposits option in the filter if you want the filtered result to also include deposits 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 a withdrawal:

Click the Filter icon Check the Include Withdrawals option

The filter list will display all transactions as well as the withdrawals.

Click select next to the Withdrawal transaction

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 a deposit:

Click the Filter icon Check the Include Deposits option

The filter list will display all transactions as well as the withdrawals.

Click Select next to the deposit

Categorize Transactions Manually

If the uncategorized transaction doesn’t have a matching transaction in your Zoho Books organization, 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. Here’s how:

Click Categorize next to the uncategorized transaction Enter the details of the new transaction

The transaction will be categorized and you can view it in the Categorized Transactions section. Here’s how:

Click Categorized from the All Transactions dropdown

You can view all the categorized transactions here.

All Categorized transactions

Unmatch a Matched/Categorized Statement

To unmatch a transaction with a statement line,

Banking

The statement line reverts back to the Uncategorized state and the transaction to the Manually Added state.

To uncategorize a transaction,

Banking

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:

Enable Clear Selection Match Selection

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:

Save Match

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