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.

In this page…

Match Transactions

Categorize Transactions


Matching Transactions

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,

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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.

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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Account Select an account to which the amount must be deposited or withdrawn.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 transactions at the top and you can match it with the Uncategorized transaction. You can also remove an Adjustment by clicking Remove Adjustment.

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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.

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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.

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.

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,

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The filtered list displays all the transactions including the Withdrawals.

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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,

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The filtered list will display all the transactions including the Deposits.

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.

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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.

Unmatch a Matched/Categorized Statement

To unmatch a transaction with a statement line,

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

To uncategorize a transaction,

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The statement line reverts back to having the Uncategorized label and the transaction will be deleted from Zoho Books.


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