Matching transactions in Bank Activity makes the Bank Reconciliation process easier. Once your Bank Accounts are set up, then Bank Activity can be pulled and matched. This process consists of the following steps:
- Navigate to Bank Activity
- Update Bank Activity. Bank Activity can be updated in one of three ways:
- Manual Upload - Download activity from your Bank (.qfx or .qbo file formats only) and then upload the file on the Bank Activity screen (this will attempt to Auto-match the Bank Transaction with its corresponding R365 Transaction, if it has previously been entered)
- Direct Bank Connection - Connect your bank accounts to R365 and refresh their transaction details with a simple click of the 'Retrieve Activity' button
- BAI File Transmission - Create a direct link to your bank(s) where transaction details will automatically pull into Bank Activity without User intervention
- Review and Update Records that were not Auto-Matched
- Clearing the 'Unmatched' tab
These steps are further elaborated on below. Scroll down to view all steps or click the desired step above to jump to its section.
Step 1 - Navigate to Bank Activity and Select the Bank Account
1) Open the Bank Activity Screen by hovering over the 'Banking' menu and selecting 'Get Bank Activity'
2) Select your desired bank account in the Bank Accounts selector
3) Check or Uncheck the 'Match Undeposited Funds' checkbox based on whether you want the system to match these or not.
- If Checked - The auto-matching logic will first try to match transactions in the system for this Bank Account, and if it does not find a match, it will then try to match this record to transactions in the system that were posted to the Undeposited Funds account. If it does find a match in Undeposited Funds, it will change the Account from 'Undeposited Funds' to the Bank Account and then perform the Auto-match. It will not match to Undeposited Funds in a closed period.
- If Unchecked - Bank Activity will not match to Undeposited Funds transactions
Step 2 - Import Bank Activity from your Bank
Bank Activity can be imported into R365 using one of two methods:
- Method 1 - R365 Direct Bank Connection - This allows you to seamlessly download Bank Activity directly from your bank and upload into R365
- Method 2 - Manual Export & Import (.QBO / .QFX file) - This allows you to manually export your Bank Activity from your bank and then upload it into the Bank Activity Screen
Step 3 - Auto-Match
Once the transactions have been imported, Bank Activity will perform auto-matching. The auto-matching logic will attempt to match each activity record with a transaction in the system (auto-matching logic is outlined at the end of this article).
- Successful Matching - Records that are successfully auto-matched will be moved to the 'Matched/Excluded' tab
- Unsuccessful Matching - Records that did not auto-match to an existing transaction will have one of two actions occur:
- The Auto-match process will attempt to match the Activity against the conditions set on previously created Bank Rules (located on the 'Bank Rules' tab). If the Activity meets the conditions, it will be moved to the 'Rule Applied' tab
- If the Activity does not auto-match and does not meet any Bank Rule conditions, it will remain on the 'Unmatched' tab to await processing
File Incorrectly Uploaded
If a Bank Activity file was manually uploaded to the wrong Bank Account (not applicable to Direct Bank Connections) or otherwise incorrectly uploaded, click 'Undo File Upload' to open the Undo File Upload prompt.
The prompt will display the most recently uploaded Bank Activity file and ask if the file should be removed. Click 'Yes' to remove the upload, otherwise click 'Choose a different one' to review and select a different Upload file.
Step 4 - Manually Match / Create / Exclude / or Delete Activity that didn't Auto-Match
This step is where unmatched activity from the 'Unmatched' tab is reviewed and manually matched, excluded, deleted, or added.
Manually Matching Bank Records to R365 Transactions
If there is a possible match in the system but the match was not close enough to be auto-matched, a potential match will be indicated with an 'M' at the end of the row. Reasons for possible matches include:
- Same Amount and Multiple Transactions - There are multiple transactions in the system for the same amount
- Same Amount and One Transaction - There are multiple Bank Activity records imported with the same amount and only one R365 Transaction for that amount in the system
To see the possible matches, click the arrow on the far left of the row to expand the row and view the listing. Click the 'Match' button on the far right of the row for the correct match and this record will be matched and moved to the 'Matched/Excluded' tab. Collapse the row by clicking the same arrow.
Excluding Bank Records from Bank Activity
Records that were not intended to be included or that have already been reconciled manually can be removed by selecting their respective line and then in the 'Select Command' selector, choosing 'Exclude Selected'. This will move those rows to the 'Matched/Excluded' tab.
If you need to move an excluded record back to the 'Unmatched' tab from the 'Matched/Excluded' tab, simply click the 'Include' button on the 'Matched/Excluded' tab.
Deleting Bank Records from Bank Activity
If you are confident that the record will not need to be Included or Matched again, you can perform the same process as described in the 'Excluding' step above, but instead, select 'Delete Selected' to manually delete the Bank Activity records from the 'Unmatched' tab.
You can create Transactions in one of two ways:
1) 'Simple' Transactions that only involve:
- One GL Account
- One Location
2) Regular Transactions that involve:
- Multiple Accounts
- Multiple Locations
'Simple' Transaction Steps:
- Populate the Vendor on the Activity row. This field is optional and only applies to Withdrawals (not Deposits).
- If you select a Vendor that has a Default Expense Account, the Account column will populate automatically.
- Set or change the Account on the Activity row. This is required and must be populated on both Withdrawals and Deposits before they can be created.
- Set or change the Location. This will default to the Location on the Bank Account and is a required field.
- Check the 'Add Rule' checkbox if you want a Bank Rule created.
- Checking the 'Add Rule' Box - By default, 'Add Rule' is not checked, which means a new Bank Rule will not be created unless you check that box. Checking the box to add the rule will make it so that any other Activity records with this same name will be recommended to hit this same Vendor/Account/Location and be moved to the 'Rule Applied' tab.
- Leaving the 'Add Rule' Box Unchecked - This means that when this transaction is added, no Bank Rule will be created. Refer to the Bank Rules section for more information.
- Add the Transaction. Transactions can be added individually or in bulk.
- Individually - Click the 'Add' button on the Activity record row to add the single transaction immediately. If 'Add Rule' is checked, this will also create the Bank Rule.
- In Bulk - Select each Activity record row and click on 'Select Command' and then 'Add Selected'. Each Transaction will be added and any rows with 'Add Rule' checked will also create new Bank Rules.
Regular Transaction Steps:
For Transactions that require multiple GL Accounts or Locations, instead of populating the Vendor / Account / Location values on the Activity row, click the 'Withdrawal' or 'Deposit' button. A Withdrawal or Deposit form will appear in a pop-up where you can create the Bank Transaction with as much detail as needed.
When you have entered all of the details, click 'Create Withdrawal' or 'Create Deposit' in the upper left corner of the pop-up to create the Transaction and move the Activity row to the 'Matched/Excluded' tab.
Step 5 - Clearing 'Unmatched' Tab
If any Activity records remain after all desired transactions are created and matched on the 'Unmatched' tab, leftover records can be moved to the 'Matched / Excluded' tab by clicking the 'Remove All Unmatched' button near the top of the Bank Activity window.
All remaining Bank Activity records will then be moved to the 'Matched/Excluded' tab and will be removed from Bank Activity 10 days after being moved to this tab.