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,
- Go to the Banking module, and navigate to the bank account in which you have uncategorized transactions.
- Click on 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 instance, if the statement date is March 1, 2016, then all transactions that were made till June 1, 2016 will be listed under Possible Matches.
- If there are many transactions listed in the 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 on the Select option.
- You can select multiple transactions as well. All the selected transaction(s) 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 on the Match button, and the selected uncategorized transaction will be matched.
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 + Create New Transaction option which is prompted at the bottom. You can enter any miscellaneous expense or sale that was not accounted in here.
- Select + Create New Transaction.
- Fill in the particulars to record the adjustment.
| 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. |
| Expense Type | Select the type of expense for which you are creating this transaction. |
| SAC/HSN | Enter the respective SAC/HSN code depending on the type of expense that you choose. |
| GST Treatment | Choose the GST treatment for the transaction. |
| Destination Of Supply | Enter your business location. |
| Reverse Charge | You need to check this option if you are liable to pay reverse charge for this transaction. |
| Tax | Associate the tax that you incurred for this transaction. |
- Hit OK.
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 Delete Transaction.
- After the transaction is successfully matched, navigate to the All Transactions tab and 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 on the Filter icon on the Possible Matches bar.
- In the pop-up, enter the details to filter.
| 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:
- 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.
- 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
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,
- Select an Uncategorized transaction which is a Deposit.
- Click on 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
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,
- Select an Uncategorized transaction which is a Withdrawal.
- Click on the Filter icon found on the Possible Matches bar.
- Fill the required details and check the Include Deposits option.
- Click Search.
The filtered list displays 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 a transaction will be labelled as a Categorized transaction.
- 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 on Save
- After the transaction is successfully categorized, navigate to the All Transactions tab and you can find the transaction with its status as Categorized.
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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