One of the wonderful things about downloading bank transactions is matching them up with the transactions that are already entered in QuickBooks Online. Here's some information about matching up some downloaded transactions and how it works.
How QuickBooks Online analyzes matches
When QuickBooks Online downloads transactions from the bank, it analyzes the bank data against your QuickBooks Online data. If you set up any banking rules for transactions (such as asking QuickBooks Online to categorize purchases of a specific amount from a certain vendor in a special way), Quickbooks uses those rules. Otherwise, what QuickBooks Online suggests for each downloaded transaction depends on whether you have existing QuickBooks Online transactions or not.
For bank deposits and credits, it looks at:
- Payments received against invoices (not the invoices themselves, but payments received against them, as on the Receive Payment page)
- Sales receipts
- Deposits or payments you entered yourself in the bank or credit card register in QuickBooks Online
- Deposits you entered from Create (+) > Bank Deposit page
- Journal entries and other positive or credit transactions you created in QuickBooks Online
- Open invoices and partially-paid invoices
For bank withdrawals and debits, it looks at:
- Payments you've entered for a vendor/supplier (not the bill itself, but the payment you entered for the bill on the Pay Bills page)
- Expenses you entered using the Vendor/Supplier Expense or Check/Cheque pages
- Expenses or debits you entered directly in the bank or credit card register in QuickBooks Online
- Journal entries and other negative or debit transactions you created in QuickBooks Online
Matching payment for unpaid Bill or Invoice directly without first recording the payment in QuickBooks Online:It is possible to record payment to write off a Bill or Invoice directly by working with the bank feeds.
- Go to Banking
- Click on the bank feed you want to work on to expand it. Click on Find Match
- Select if it is a Home Currency or Foreign Currency transaction
- The list of open Invoice/ Bill for you to apply the payment to will appear. If it doesn't appear, check the date range at the top of the page and make sure that it captures the date of the transaction
- Tick the invoice you wish to record payment for and if required, edit the Payment amount
- If bank charges are applicable, click on Resolve Difference and select the Bank Charges account, followed by entering the bank charge amount. If no tax is involved, select Out of scope/ 0% tax code.
If there are no QuickBooks Online transactions yet or no match:
If there are no transactions entered in Quickbooks Online or if you know there is not a matching QuickBooks Online transaction, QuickBooks Online suggests a vendor/supplier (for debits/withdrawals) or customer (for credits/deposits) and leaves the category as Uncategorized Income or Expense. You can change the name or category before accepting (see Assigning, categorizing, editing, and adding your downloaded banking transactions).
If there are transactions entered in QuickBooks Online:
- If you have one exact match, under the Category or Match column QuickBooks Online displays a green icon that says 1 similar record found. The matching transaction will be displayed. If it is the correct match, click 1 similar record found under the Action column towards the right.
- If you have more than one exact match, under the Category or Match column QuickBooks Online displays a gray icon that says # similar records found (where # is the number of records found). The possible matches will only show amounts equal or lesser to the transaction. When you select that row, you choose from one of the possible matches listed.
If there are QuickBooks Online transactions, but none of them show as a match to the downloaded transaction:.
If you know there is a match but QuickBooks Online can't find the transaction or it isn't matching to the right one. Here is how to find transactions to match:
- Select Banking from the left menu.
- Select any of the unmatched transactions under CATEGORY OR MATCH column.
- Select Find other matching transactions.
- In the Match Transactions window, type text to help you find the transaction: a name, part of a name, an amount, etc.
- If the transaction you want to match to is outside the date range displayed, change the dates to help find the transaction you're looking for. Click within the date box to manually change or click the calendar icon to change the from and to dates.
- Once you have set your search parameters, click the magnifying glass to search.
- When you find the item you're looking for, click the checkbox in the list on the left of the date.
- If the total amount is the same as the downloaded transaction amount, click Save. If the amounts are different, you can match to multiple transactions or Click Resolve Difference to add a new transaction to make the amount equal.
- When you're satisfied with the match, click Save. The transaction moves to the In QuickBooks tab.
Note: If you still can't find a transaction you entered in QuickBooks Online, there are a few reasons it may not be showing as an option to match:
- Verify that the transaction has not been reconciled.
- Verify the transaction was entered using the same bank account.
- Make sure the Quickbooks Online transaction has not been previously matched to another bank downloaded transaction.
- If it is a deposit or payment received, make sure it is not on the Bank Deposit page (undeposited).
Accept transactions with more than one possible match
When QuickBooks Online downloads your bank data, it tries to find a QuickBooks Online transaction that matches it.
When only one match is found, under the Category or Match column there will be a green icon that says 1 similar record found. If there are multiple transactions that match the downloaded transaction, there will be a gray icon that says # similar records found (where # is the number of records found).
To accept a transaction with multiple possible matches:
- On the Downloaded Transactions page, select a transaction that displays the gray Match icon in the Category or Match column.
- Possible matches will be displayed.
- Select the QuickBooks Online transaction that matches the downloaded transaction and then click Match. If you don't see an item you were expecting, it may be because it falls outside the date range that QuickBooks Online analyzes. Click Find matching transactions to search for the QuickBooks Online transaction. Search for the transaction and click Save.
- The transaction moves to the In QuickBooks tab.
Match to multiple transactions
You can match a downloaded transaction amount to more than one QuickBooks Online transaction.
Say you received payment for three invoices with three separate checks/cheques for $100 each. You group them into one deposit for $300 at your bank. In this case, you'd want to match the $300 downloaded amount to the three $100 payments you received against those invoices.
To match a downloaded transaction to multiple QuickBooks Online transactions:
- On the Downloaded Transactions page, select a transaction that you know represents multiple QuickBooks Online transactions.
- If the transaction has a Match, click Find matching transactions. If the transaction does not have a match, select the Match option.
- In the Match Transactions window, click the checkbox in the list to the left of the date of the transactions that should be matched to the downloaded transaction.
- Be sure the total amount matches the downloaded amount:
- If the total amount matches the downloaded amount, that's good. No further action needed.
- If the total amount is more than the downloaded amount, remove some matches until the difference is 0. Or, go adjust the QuickBooks Online transaction amounts and then try matching again.
- If the total amount is less than the downloaded amount, select more matches, adjust the QuickBooks Online transaction amounts, or enter a new QuickBooks Online transaction to handle the remaining amount and then try matching again.
- Click Save.
- The transaction moves to the In QuickBooks tab.
QuickBooks Online will attempt to automatically match transactions with in 90 days of the transaction date with in QuickBooks. (if you have a check dated 01/10/2017, and that check clears the bank on 02/16/2017. QuickBooks will see this as a possible Match (as long as the other criteria is met).
Also if you have Imported more then 180 days (6 Months) transactions, QuickBooks will only attempt to find Matches for transactions with in the first 180 days (based on the date of Imported transactions) in the "To Review" tab in the Online Banking window. As you Match or Exclude transactions, the Matching window will updated to 6 months from the date of the newest transactions to be reviewed.
These changes where made to help improve the performance of QuickBooks Online Online Banking screens. We apologize for any inconvenience these changes may have cause you.