How bank lines are matched
A payment is matched to an invoice or bill by its reference number or amount; the rest is categorised by your rules.
Each line of an imported statement is explained in one of three ways, and Banking → Reconciliation shows how far the account is explained:
- Matched — paid against an open invoice or bill, by the reference number or by the amount.
- Categorised — by a rule you set (on the counterparty, the description or the amount) or by hand.
- Waiting — not yet explained. These are the lines to look at.
When a customer’s payment arrives with the invoice’s reference number, the invoice is marked paid on the day of the bank line. A payment to the Tax and Customs Board is matched to the tax it names; a line that names one tax never pays another.
Transfers between the company’s own accounts are kept out of revenue and expenses.