Matching

Processing the bank rec involves the following basic steps:

1. Name the statement
2. Enter the closing balance
3. Review the auto matched lines
4. Process remaining lines
5. Save the changes (which creates any new transactions)

 

Hint: the Help link on the matching page shows the different transaction types and the fields that need to be used for each transaction type.

 

Automated Matching

When the bank statement is first opened it will apply the matching rules from the Bank Account Configuration as well as any custom matching rules.  Any matched lines will be flagged with a tick in the select column.

 

Manual Matching

There are basically two types of matching in ERPFF, closed and open transactions.

 

Closed Transactions

A closed transaction means the bank entry has already occurred eg payments or deposits.  The bank rec will just be a match to an existing transaction.

 

The bank statement amount must match exactly to the transaction amount.

 

To Match:

1. Tick Select
2. Select the Popup Link column
3. Tick the Popup Link
4. Select the transaction/s
5. Submit

 

Additional Options:

• Use the date or amount ranges to then click search expand your results.
• If the payment cannot be found by date, close the pop up window and enter the customer or supplier name then go back to the pop up.
• Ticking / unticking Show Closed Transactions will show the unpaid transactions.

 

Open Transactions

A closed transaction means the bank entry hasn’t happened yet eg unpaid invoices or bills.  The bank rec will create a new payment or other entry.

 

The bank statement amount may be made up of many transactions eg customer invoices.  New transactions allow one GL account per bank statement line.  There are a number of different types of transactions that can be created, these are discussed below.

 

New Customer Payment

To Match:

1. Tick Select
2. Enter the Customer name
3. In the pop up select the transaction/s
4. Submit

 

Hint: If the last payment selected is underpaid, the payment column will show how much has been applied against each invoice.

 

Single Payment for Multiple Customers

If one payment covers multiple customers and Consolidated Payments is not enabled you will need to group these payments into a single deposit.

1. Create the Customer Payments
   1. Transactions > Customers > Accept Customer Payment
   2. Use the Payment Method to set the account to undeposited funds instead of direct to the bank account. Repeat for all payments
2. Create a Bank Deposit
   1. Transactions > Bank > Make Deposits
   2. Select the bank
   3. Set the date
   4. Tick the payments that make up the deposit for the date selected.

 

Hint: if you do this step first the bank rec will auto reconcile to the deposits.

 

Alternatively, you can use the insert button to split the bank statement line into multiple lines.  Make sure the statement difference is zero before and after the lines are inserted.

 

 

New Supplier Bill Payment

To Match to an existing Bill:

1. Tick Select
2. Enter the Supplier name
3. In the pop up select the transaction/s
4. Submit

 

Hint: If the last payment selected is underpaid, the payment column will show how much has been applied against each invoice.

 

New Write Cheque / New Supplier Expense

Used for any charge that requires a supplier or has a GST impact eg a payment for petrol.

1. Tick Select
2. Enter the Supplier Name
3. Enter the GL Account in the Select Account column
4. Select the tax code
5. Enter the location / department / class if required.

 

New Journal Entry

Use for charges or payments not related to a customer or supplier and where there is no tax impact eg bank fees.

 

1. Tick Select
2. Enter the GL Account in the Select Account column
3. Enter the location / department / class if required.

 

 

Tax Journal

These require an additional step. 

1. Tick Select
2. Enter the GL Account in the Select Account column
3. Select the tax code
4. Select the tax account (GST Paid for payments and GST Collected for receipts)
5. Enter the location / department / class if required.

 

 

Supplier Prepayment / Supplier Refund

Use for prepayments to suppliers where the bill does not yet exist.  A credit / or deposit will be created on the supplier’s account in the form of a journal.

1. Tick Select
2. Enter the Supplier Name
3. Leave the Select GL Account blank (this triggers the creation of a prepayment instead of a write cheque)

 

Customer Deposit

Use where the customer is known but the items being paid are not known.  Only required where you need to close off a month otherwise see the alternate solution below.

1. Tick Select
2. Enter the Customer Name

 

Alternate Solution:

Leaving the Select column unticked will prevent the line from reconciling.  The line can remain as unreconciled until the invoices being paid have been identified.  It can be easier to identify incomplete payments from Lines to be Processed rather than also having to review open Customer Deposits.

 

EFT Batch Payment

Used for bulk payments via the EFT Payments module.  Alternate Matching must first be enabled, see Setup Guide for how to complete the setup.

 

1. Tick Select
2. Set Alt Match Type to Netsuite Electronic Payments Batch
3. In the pop up select the related EFT batch
4. Submit

 

Merchant Accounts / Credit Cards

Merchant payments are typically grouped into a single line on the bank statement eg 10 customer payments via credit card appear as a single line on the bank statement.  As a result the customer payments must also be grouped into a single line for reconciliation.  The method used depends on the volume of payments and how the fees are paid.

 

Low volume / fees appear as separate statement line

These are easiest via Make Deposits.

Setup

1. Create a Payment Method (Setup > Accounting > Accounting Lists > Payment Method) set to undeposited funds.

 

Processing

3. Create a Customer Payment.
   1. Transactions > Customers > Accept Customer Payment
   2. Use the Payment Method to set the account to undeposited funds instead of direct to the bank account. Repeat for all payments
4. Create a Bank Deposit
   1. Transactions > Bank > Make Deposits
   2. Select the bank
   3. Set the date
   4. Tick the payments that make up the deposit for the date selected.

 

Hint: if you do this step first the bank rec will auto reconcile to the deposits.

 

High volume / fees are deducted from the deposits

Due to the volume of transactions these are easiest via virtual bank accounts.

 

Setup

1. Create a virtual bank account (Lists > Accounting > Accounts)
2. Create a Payment Method (Setup > Accounting > Accounting Lists > Payment Method) set to the virtual account. Repeat for each high volume merchant.
   • Do not tick the credit card box unless you have linked your Eway account with JCurve.
3. Create Custom Rules (Setup > Bank Reconciliation > Custom Rules > New) set the account = each Virtual Bank Account.
   • (Note: if the virtual accounts are also reconciled via EFPFF then you will need to set the account here to a Bank Transfer Clearing account, see Bank Transfers for more detail)

 

Processing

1. Create a Customer Payment.
   1. Transactions > Customers > Accept Customer Payment
   2. Use the Payment Method to set the account to the virtual bank account. Repeat for all payments
2. Process the bank statement
   1. Transactions > Bank Reconciliation > Statement List / Statements to Process
      1. The custom rule will create a journal to transfer the funds from the virtual account.
   2. Create the merchant fees charge
      1. GST – Create a tax Journal or Write Cheque to the virtual bank account
      2. No GST – Use the New Charges tab from the standard Netsuite Bank Rec.
   3. Reconcile the virtual bank account
      1. Transactions > Bank Reconciliation > Reconcile Bank Statement
      2. One a month / week you will need to reconcile the virtual account to ensure all payments have been received and charges created.
         1. Select the bank account
         2. Set the Statement Date

• Mark all Deposits and Credits

1. Mark all Cheques and payments
2. If there is a difference it is likely some of the last Deposits are in the next date range or the merchant fees have not yet been created.

 

Hint: if you use ERPFF to reconcile the Virtual Bank account make sure you map to the column will the full payment amount (not less the fees) and create a line in the CSV file for the total sum of the fees.  Also see the notes below on Bank Transfers when reconciling multiple bank accounts via EFPFF.

 

 

Bank Transfers

The statement matches to the transaction not to a transaction line therefore a Bank Transfer or Journal between bank accounts can only be used if we are only using ERPFF on one of those bank accounts.  If we are using ERPFF to reconcile both bank accounts a clearing account is required so that both banks journal to the clearing account thus creating two separate transactions for reconcile, one for each bank. 

 

Setup ERPFF to reconcile multiple bank accounts

A clearing account is required as an intermediately between the two banks.

 

Setup

1. Create a clearing bank account “Bank Transfer Clearing”
2. Create a custom rule
   1. Name Bank Transfers
   2. If Description “contains”
   3. Value what appears on your statement
   4. GL Account Bank Transfer Clearing

 

Once all statements are reconciled each month check the Bank Transfer Clearing account is also zero.

 

Setup ERPFF to reconcile just the main bank account

As the journal will be matched to only one account a clearing account is not required. 

Setup

1. Allow matching
2. Create a custom rule
   1. Name
   2. If Description “contains”
   3. Value what appears on your statement
   4. Set Select Ticked
   5. GL Account the other bank account

 

 

Foreign Currency

Foreign Currency transactions cannot be created via the bank rec as you are not able to enter the exchange rate.  Instead enter the payment manually then match the statement line to the closed transaction.  Hint: to calculate the correct exchange rate, divide the AUD by the Foreign Currency.

 

Matching a foreign currency transaction is only possible when you select an entity first and then use the pop up. Manually calling the pop up isn't going to show you foreign currency transactions. 

 

1. Enter the Supplier name
2. Open the pop up
3. Click show closed transactions
4. Match & submit

 

Foreign Currency Bank Transfers are not currently available.  Instead create a clearing bank account in the local currency and do a transfer to this account from the bank rec then a manual Bank Transfer from the clearing account to the Foreign Currency Bank.

 

Payment Differences

Payment differences can be applied to Open Transactions to write off an over or underpayment.  

 

In the Select Transactions window, select the Payment Difference Reason against the transaction that is over or underpaid.  Edit the payment difference amount as required.

 

If a Closed Transaction has the wrong amount or wrong Exchange Rate you must edit the original payment to correct it.