Setting up Bank Account Reconciliation Rules

  • 02/03/2021
  • 6 minutes to read

During the import of a bank account statement for reconciliation, reconciliation rules play a crucial role. Their purpose is to identify the relevant bank account lines within the bank account reconciliation journal, enabling successful settlement.

The search rules are specifically applied to the description field within the bank account reconciliation lines. When a search rule is complied with, a counter entry is automatically generated on a designated balance account, which can be either a bank account or a ledger account. These search rules are commonly utilized in association with recurring entries like interests or fees.

Note

While general reconciliation rules and bank account reconciliation are basically the same, their scope of application differs. General reconciliation rules are applied to all bank accounts by default, whereas bank account reconciliation rules are tailored specifically to individual bank accounts.

To set up bank account reconciliation rules

To set up reconciliation rules for bank accounts:

  1. Use the Search for page or report icon and search for Bank Accounts, then select the related link.
  2. Select the bank account for which you want to set up reconciliation rules.
  3. In the action bar, navigate to Related > Reconciliation Rules. This opens the Bank account Reconciliation Rules.
  4. In the action bar select New to create a new reconciliation rule for the bank account.
  5. In the column Search Text specify the text to search for when the reconciliation rule is used on the bank account reconciliation lines in order to identify a match.
  6. In column Search Principle specify how the search is carried out when searching for the specified search text.
    • Exact indicates that search text must be the exact same as the description on the bank account reconciliation line for the rule to be met.
    • From left indicates that search text must match the first part of the description on the bank account reconciliation line for the rule to be met.
    • From right indicates that search text must match the last part of the description on the bank account reconciliation line for the rule to be met.
    • Within indicates that search text must just appear some place in the description on the bank account reconciliation line for the rule to be met.
  7. Select Search in Description if you want the search rule to search for Search text in the description of the payment line.
  8. Select Search in Notification if you want the search rule to search for Search text in the payment line notification.
  9. In the column Balance Account No. (Positive) specify the balance account (bank account or ledger account) to which the entry will be generated in case of a positive amount. If the account type is a ledger account, an account of the balance type must be used, which allows direct bookkeeping.
  10. In the column Balance Account No. (Negative) specify the balance account (bank account or ledger account) to which the entry will be generated in case of a negative amount. If the account type is a ledger account, an account of the balance type must be used, which allows direct bookkeeping.
  11. If you want to define more reconciliation rules, navigate to the action bar and select New.
  12. When you have finished setting up reconciliation rules you can close the page.

The rules will be implemented when you run a reconciliation in the bank account reconciliation journal.

To add dimensions to bank account reconciliation rules

To enhance the functionality and reporting capabilities of reconciliation rules for bank accounts, you can include dimensions. By setting up dimensions on bank account reconciliation rules, you can ensure accurate tracking and analysis of data. If no specific dimension is added, the system will automatically assign the dimension from the corresponding G/L account. This feature ensures that dimensions are added to the journal lines generated by the rule, and they will be automatically included in the entry when it is posted.

To add a dimension to a reconciliation rule:

  1. Use the Search for page or report icon and search for Bank Account Reconciliations, then select the related link.

  2. Select the bank account for which you want to set up reconciliation rules.

  3. On the action bar, select Rules > Bank Account Reconciliation Rules.

  4. Select Related > Dimensions.

  5. On the Edit Dimension Set Entries page, you can enter the Dimension Code and Dimension Value Code.