Creating Bank Reconciliation Rule

A Bank Reconciliation Rule eases the reconciliation process by matching Bank transactions, based on the Rule Criteria, and reconciling them with an automatically generated Journal Entry. Creating bank reconciliation rule involves entering the header details, transaction search criteria, and value lines.

To create a bank reconciliation rule, go to Menu > Accounting > Bank Reconciliation Rule > Bank Rule > Bank Reconcile Rule

To create the bank reconciliation rule, you'll begin by entering the header details, such as rule name, type, and bank account. Once the basic details are set, you can define the transaction search criteria and value lines.

Bank Reconcile Rule Header Fields

Field	Description
Rule Name	Enter a unique name for the rule for easy identification and reference.
Rule Type	This field allows you to choose the type of rule you want to create. Select Debit if you’re matching payment transactions and Credit if you’re matching deposit transactions.
Bank Account:	Select the bank account this rule will apply to.
Reference	This field allows you to enter a reference for the reconcile rule. The generated journal entry will include a memo based on the reference field from the bank transaction.

After entering the header details, proceed to set the transaction search criteria.

Transaction Search Criteria Fields

Field	Description
Match	Choose whether to match All or Any of the conditions.
Search By	Select the field to search from the bank statement’s transaction.
Operator	Choose the operator for the search (e.g., equals, contains).
Value	Enter the value to search for.
-/+	Use the +/- buttons to add or remove search conditions as needed.

One line of the generated Journal Entry will go entirely towards the account that is being reconciled. But the remaining Debit or Credit lines (depending on the Rule Type chosen), are controlled by the fields below. Fixed lines will show as fixed amounts and variable lines will take the remaining amount after the fixed lines and distribute it according to the percentage values.

Fixed Value Lines Fields

Field	Description
Store	If required, select the store of the fixed-line.
Account	Select the account of the fixed-line.
Name	If required, select an entity to associate with the fixed-line.
Amount	Enter an amount for the fixed-line.
Tax (Inclusive)	If required, select a tax code for the fixed-line.
Project Class	If required, enter a memo for the fixed-line.
Memo	Click here to add the fixed line to the rule.

After entering the details, click "Add" to add the fixed value line to the rule.

Remainder Variable Value Lines Fields

Field	Description
Store	If required, select the store of the variable line.
Account	Select the account of the variable line.
Name	If required, select an entity to associate with the variable line.
Percentage	Enter a percentage for the variable line.
Tax (Inclusive)	If required, select a tax code for the variable line.
Project Class	If required, enter a memo for the variable line.
Memo	If required, enter a memo for the variable line.

After entering the details, click "Add" to add the variable value line to the rule.

Allow Creating Bank Reconcile Rules During Reconciliation

XoroERP provides the ability to create Bank Reconciliation Rules directly during the reconciliation process, improving efficiency and reducing manual effort. This feature allows users to define and save rules at the time of transaction entry, ensuring faster reconciliation for future transactions.

This is an app config-based feature.

How it works

Step 1: Navigate to Menu → App Config → Accounting and enable the app config “Allow Creating Bank Reconcile Rules During Reconciliation.”

Step 2: Go to the Reconcile Bank Account module and select the required bank account.

Step 3: For a transaction without a matching rule, click Options → Create Journal Entry and balance the journal entry lines.

Step 4: Click Save. A prompt appears with the option “Remember this rule for future?”

Step 5: Enable the toggle and enter the rule details such as Rule Name, Payee, Amount, Category, and Reference No., then confirm.

Step 6: The rule is saved and available in the Bank Reconcile Rule Centre.

Step 7: For future transactions matching the criteria, the system automatically identifies the rule and displays a “Rule Found” indicator for quick reconciliation.

If the app configuration is disabled, users will not be prompted to create a rule during reconciliation. Bank Reconciliation Rules must be created manually from the Bank Reconcile Rule page, and no rules will be generated automatically during the Journal Entry process.