How do I setup a Bank Reconciliation Rule?

A Bank Reconciliation Rule eases the reconciliation process by matching Bank transactions, based on the Rule Criteria, and reconciling them with an automatically generated Journal Entry. Use the Bank Reconcile Rule module to create and edit these rules.

Bank Reconciliation Rule Fields

Bank Reconcile Rule Header

  • Rule Name: The rule’s description.
  • Rule Type: Select Debit if you’re matching payment transactions and Credit if you’re matching deposit transactions.
  • Bank Account: Select the bank account this rule will apply to.
  • Reference: The generated journal entry will have a memo of this field from the bank transaction.

Transaction Search Criteria

  • Choose whether to match All or Any of the conditions.
  • Search By: Select the field to search from the bank statement’s transaction.
  • Operator: Select how you want to search.
  • Value: Enter a value for searching.
  • Use the +/- to Add or Remove the search conditions.

One line of the generated Journal Entry will go entirely towards the account that is being reconciled. But the remaining Debit or Credit lines (depending on the Rule Type chosen), are controlled by the fields below. Fixed lines will show as fixed amounts and variable lines will take the remaining amount after the fixed lines and distribute it according to the percentage values.

Fixed Value Lines

  • Store: If required, select the store of the fixed-line.
  • Account: Select the account of the fixed-line.
  • Name: If required, select an entity to associate with the fixed-line.
  • Amount: Enter an amount for the fixed-line.
  • Tax: If required, select a tax code for the fixed-line.
  • Memo: If required, enter a memo for the fixed-line.
  • Add: Click here to add the fixed line to the rule.

Remainder Variable Value Lines

  • Store: If required, the store of the variable line.
  • Account: Select the account of the variable line.
  • Name: If required, select an entity to associate with the variable line.
  • Percentage: Enter a percentage for the variable line.
  • Tax: If required, select a tax code for the variable line.
  • Memo: If required, enter a memo for the variable line.
  • Add: Click here to add the variable line to the rule.

Video Tutorial:

 

Was this article helpful?

Related Articles