Understanding Reconciliation in Accounts receivable
Reconciliation helps you match your client invoices with corresponding bank transactions. When you reconcile an invoice, it is removed from your expected transactions, and the bank transaction is tagged as Reconciled. This ensures your cashflow reflects actual payments received.
How to Reconcile Your Client Invoices
Follow these steps to reconcile your invoices:
Navigate to the Reconciliation Page
Select Invoices to Reconcile
Click the checkbox next to the invoice(s) you want to reconcile.
You can select multiple invoices if needed.
Choose a Reconciliation Method
On the right side panel, you have three options:
Automatic Suggestions
Search Function
Manual Reconciliation
1. Reconciliation via Automatic Suggestions
If the amount of your invoice(s) matches exactly with a bank transaction, it will appear under Suggested Transactions.
In that case, confirm the reconciliation by clicking on Reconcile to complete the process.
2. Reconciliation via the Search Function
If there are no automatic suggestions, you can search for the transaction:
Click on the Search Tab and select Search.
Enter Transaction Details : Use filters like amount or transaction title to find the transaction.
Select and Reconcile
Note: You can reconcile an invoice with a transaction even if:
The transaction amount is higher than the invoice amount (e.g., includes bank fees)
In that case, there will be a warning indicating that the bank transaction amount is higher than the invoice amount
The transaction amount is lower than the invoice amount
It will update the amount of the invoice and you will have a remaining to reconcile
3. Manual Reconciliation
If you can't find the matching transaction, you can perform a manual reconciliation:
Click on Manual Reconciliation in the side panel.
Confirm the Action
Warning: Manual reconciliation won't link a bank transaction to your invoice, but it will mark the invoice as paid.
Reconciliation in Different Currencies
You can reconcile invoices and transactions even if they are in different currencies:
Single Invoice with Multiple Transactions
Reconcile one invoice with multiple transactions in the same currency until the total amount matches.
Example: Invoice of $1,000 reconciled with transactions of $200 and $800.
Multiple Invoices with a Single Transaction
Reconcile multiple invoices in the same currency with one transaction if the amounts total exactly.
Example: Invoices of $1,000 and $2,000 reconciled with a transaction of $3,000.
💡 Tips
You can reconcile an invoice even if the transaction amount is higher due to fees.
Only synchronized bank transactions can be used for reconciliation.
Imported, manual, or split transactions cannot be reconciled.
Transactions older than three months from the bank account activation date may not be available.
Reconciliation keeps your forecasts accurate by removing paid invoices from expected cash inflows.
Q&A ❓
Why can't I find a bank transaction when reconciling an invoice?
You can only reconcile with synchronized bank transactions. Transactions that are imported, manually added, or split are not available for reconciliation. Also, transactions might be missing if they are older than three months from your bank account activation date.
Can I reconcile multiple invoices with one transaction?
Yes, if the total amount of the selected invoices exactly matches the transaction amount and they are in the same currency. Select the invoices, search for the transaction, and proceed with reconciliation.
What happens if I reconcile an invoice with a transaction in a different currency?
When you reconcile an invoice with a transaction in a different currency, the invoice will be considered fully reconciled. The system accounts for currency differences automatically.