I am trying to understand exactly what Matching does in QBO.
1. I manually enter the deposit of funds directly into my Current account and to the Debtor account prior to Updating the bank feed (e.g. for a cheque). When I update the bank feed, the cheque is recognised and I have the option to Match the transaction. If I select Match, the transaction is removed from For Review.
2. I manually enter the deposit of funds into Undeposited Funds and the Debtor account. When I update the bank feed, the deposit is recognised and I have the option to Add. If I select Add, the Deposit in the Undeposited Funds entry is cleared and the amount is processed into the Current account.
In 1. is the match process simply saying the deposit already exists in the Current account so we don't need to process it again and then marking the deposit as reconciled for Bank reconciliation purposes?
In 2. is the Add process saying the deposit does not exist in the Current account so we must add it (and presumably Matching it at the same time), clearing the Undeposited Fund entry and then marking the entry as reconciled for Bank reconciliation purposes?
In the case of 1. above, I have simply excluded the transaction (on the basis that it was already in the account), but this then seems to result in a large number of Unreconciled items in my bank reconciliation. I have got around this by Selecting all in the bank reconciliation and then unselecting the outstanding items.
In short, Matching simply marks the item as reconciled for bank reconciliation purposes.
Solved! Go to Solution.
In regards to your questions I will answer them in the same numerical points as you for ease of understanding:)
1. The match process in this instance is purely saying that it can see the transaction in the Quickbooks and nothing further needs to be done as it is allocated to the bank already so yes it is for reconciliation purposes and if you use the reconcile tool in the Quickbooks it will pre tick it so it helps with that process as well
2. The add process in the example you gave is giving you the add option because yes that amount is not deposited to a bank account so it will not find a match. If you wanted it to find a match instead on that transaction you would need to go to the plus symbol in the top right and then go to bank deposit and you can deposit the funds to the bank from there and you will see a match. But adding it as you are is fine. Yes the add will mark it as reconciled for bank reconciliation purposes
Matching is mainly for bank reconcile purposes, to make sure what you are entering in the Quickbooks and what is in the bank are the same, some people also use it on open invoices and bills as it will receive/make payment on them in the Quickbooks and you do not then have to physically go to the transaction and close it as paid
More information on matching can be found here
Any further questions just let us know