Transaction Matching for Bank Account Reconciliations

Bank account reconciliations use AI-powered automatic matching to reconcile GL transactions against bank statement data. The system automatically parses uploaded statements and matches transactions, eliminating 80-90% of manual work.

To perform transaction matching for a bank account reconciliation, follow these steps:

• Step 1: Open Bank Account Reconciliation

• Step 2: Open Unmatched Items [v26.1] 

• Step 3: Upload Bank Statements

• Step 4: Set Support Balance

• Step 5: Review Matched Transactions

• Step 6: Manage Unmatched Transactions

• Step 7: Match Transactions Manually

• Step 8: Document Unmatched Transactions

• Step 9: Submit Reconciliation for Review

Open Bank Account Reconciliation

To open a bank account reconciliation:

1. Navigate to the Reconciliations module.

2. Locate a bank account (identified by the bank account number in the Support Source section)

   

3. Click on the account row to open the Reconciliation Details page.

Open Unmatched Items [v26.1] 

After opening the Reconciliation Details page, the GL side and the Support side each display a + (add) button and an Upload button for loading open unmatched items. Customers onboarding mid-year must load historical unmatched items from prior periods before proceeding with GL data entry and transaction matching. This ensures that the reconciliation equation balances from day one.

Note: This step applies only to the first active reconciliation period. For subsequent periods, open unmatched items carry forward automatically. Once open unmatched items are loaded, proceed to next step.

For step-by-step instructions on adding open unmatched items via bulk upload or manual entry, see Open Unmatched Items for Bank Account Reconciliations.

Upload Bank Statements

Bank statements must be uploaded before automatic transaction matching can begin.

To Upload bank statements:

1. Click the Upload button on the Reconciliation Details page.

2. In the upload dialog: click Browse Files or Drop files in the upload area.

   1. Select your bank statement file (Excel, CSV, pdf, or image formats)

   2. Verify if the file contains account number, period, amounts, and descriptions.

   3. Ensure transactions match the selected accounting period.

   4. Click Open to upload the file.

   

3. Click Upload to upload the file.

   [v26.1] 

   Note: File uploads are limited to a maximum of 20 files per upload batch. If more than 20 files are selected, the system displays an error message. Upload additional files in subsequent batches. This limit applies to all file upload areas including bank statement uploads, GL line uploads, and checklist attachments.

4. Monitor file processing in the Files module:

   • Processing (green spinner) - File is being parsed

   • Attached (green checkmark) - File successfully processed

   • Error (red icon) - Processing failed due to:

     • Wrong period data

     • Corrupted file format

     • Missing required field

   The system automatically parses the file. AI engine performs automatic matching.

   • Matched Results tab populates with matched pairs.

   • Unmatched Items tab shows remaining transactions.

   • KPI cards update with current totals.

Set Support Balance

The Set Balance feature is available for all reconciliation types, including bank account reconciliations. If the closing balance is not provided in the bank statements, you can use the Set Support Balance to match the balances populated, .

To set the support balance:

1. Click Set Balance

2. Enter the correct balance that should reconcile to the GL balance.

   The system automatically calculates and displays the Difference.

   Reconciliation Scenarios:

   Scenario	GL vs Support Balance	Required Action
   Balanced	GL Balance = Support Balance	Submit for review with no unmatched items
   Variance Exists	GL Balance ≠ Support Balance	Add unmatched line items to explain difference

3. Click Set Balance.

   The system automatically calculates and displays the Difference.

   

Balance Override Behavior

• If a bank statement containing a balance column is uploaded later, the system automatically overrides any previously set manual balance

• If you manually update the balance after a bank statement has been uploaded, the most recent update is considered the source of truth

Note: The Set Balance button is disabled beyond the Preparation stage for bank reconciliations.

Review Matched Transactions

The Matched tab displays all successfully matched transaction pairs including one-to-one matches and many-to-one matches.

To review matched transactions:

1. Go to the Matched results tab.

2. Use the following controls to search, filter, and manage matched transactions:

   Control	Function
   Search	Searches matched transactions by description, amount, or trading partner.
   Filter by Confidence Level [v26.1]	Filters matched transactions by confidence level.
   Sort by Confidence Level [v26.1]	Sorts matched transactions by confidence level. Select Highest to display highest confidence first, or Lowest to display lowest confidence first. Sorting by lowest confidence helps identify matches that may need manual verification.
   Clear Search & Filters	Removes all applied search and filter criteria and returns to the default view.
   Bulk Unmatch [v26.1]	Unmatches multiple transactions at once. Click the Bulk Unmatch button dropdown and select one of the following options: Unmatch All—Unmatches all matched transactions in the current reconciliation. Unmatch AI—Unmatches only the automatically matched (AI-matched) transactions. Unmatch Manual—Unmatches only the manually matched transactions.

3. Review each matched pair for accuracy - Match ID, dates, amounts, and descriptions.

   Feild	Description
   Match ID	Unique identifier with color coding
   Dates	Compare GL date vs Bank date •
   Amounts	Verify GL amount equals Bank amount
   Descriptions	Check GL description relates to Bank description
   Trading Partners	Compare GL vs Bank trading partners

4. Unmatch incorrect pairs if needed:

   1. Locate the incorrect match.

   2. Click the Unmatch icon on the right side of the line item.

   3. Both transactions will move to the Unmatched Items tab.

      Note: You can only unmatch transactions when the reconciliation is in the Preparation stage (In Progress status). Once submitted for review, transactions are locked.

Manage Unmatched Transactions

The Unmatched Items tab displays transactions requiring manual matching or documentation.

To manage unmatched transactions:

1. Go to the Unmatched Items tab.

2. Review the unmatched items in two side-by-side tables:

   • GL Account (Left Table):

     Shows GL transactions that are not matched to bank statements yet.

     Column	Description
     Date	Date of the GL entry
     Amount	Amount of the GL entry (color-coded for clarity)
     Description	Description of the transaction
     Trading Partner	Name of the trading partner
     Comment	Field to add or view comments

   • Support Source (Bank Account) (Right Table):

     Shows bank transactions that are not matched to GL entries yet.

     Column	Description
     Date	Date of the bank statement line
     Amount	Amount of the statement line
     Description	Description of the transaction
     Bank Reference	Bank-provided reference number
     Trading Partner	Name of the trading partner
     Comment	Field to add or view comments

   Note: When there are no unmatched items, the tables display "No unmatched transactions".

3. Check the Selection Summary bar showing:

   • GL Account: Count and total amount of selected GL items.

   • Support Source (Bank Account): Count and total amount of selected bank items.

Match Transactions manually in unmatched tab

To match transactions,

1. Find a GL entry and bank line with the same amount.

2. Select the checkboxes next to the GL entry and the matching bank transaction.

3. Verify if the selection bar shows matching totals at the bottom.

4. Click Match selected to link the transactions together.

5. Add a comment if needed to explain anything unusual about the match.

   The matched pair moves to the Match Results tab and KPI cards update automatically.

   

    

Document Unmatched Transactions for Bank Reconciliations

For bank transactions that cannot be matched in the current period (different periods, outstanding checks, etc.):

1. Navigate to the Unmatched Items tab.

2. Select the unmatched transaction(s) from either the GL or Bank side.

3. Click Add Comment to document the variance.

4. Enter a clear explanation including:

   • Reason for the variance

   • Expected resolution date

   • Any reference numbers or supporting details

5. The documented items will carry forward to future periods for tracking.

Note: Unlike manual reconciliations, bank account reconciliations track unmatched items directly from the bank statement and GL entries rather than creating separate unmatched line items.

Carryover Item Behavior for Bank Statements

Unmatched items from previous periods remain visible even after they are matched in a future period. This ensures complete audit trail visibility.

When an unmatched item from a previous period is matched in a future period:

• The previous-period record becomes read-only (no edit/delete actions)

• The unmatched item continues to display in the previous period for reference

• If the future-period match is later unmatched, the previous-period item becomes editable again

Submit Reconciliation for Review

Once all transactions are addressed:

1. Verify reconciliation completeness:

   • All possible matches are made

   • Remaining variances are documented

   • KPI cards show acceptable balances

2. Click Submit for review.

3. Optionally, add comments about the reconciliation.

4. Click Submit.

   

   The reconciliation moves to Review stage and the status indicator updates.

   

Out-of-Balance Warning [v26.1] 

If the reconciliation is out of balance, the Submit for Review button is disabled and a red warning icon displays next to it. Hovering over the icon displays a tooltip explaining the imbalance. Resolve the imbalance before submitting.