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Search criteria for automatically processing a bank statement

You can automatically process bank statements. Profit automatically searches for the corresponding outstanding items during the bank statement processing. For automatic processing, Profit matches the bank statements. This topic describes how this recognition (matching) works and which criteria Profit uses. You can use this information to optimise the recognition of the outstanding items.

The process takes place in the order shown below. If an outstanding item is recognised, then the other search capabilities are no longer used.

The search criteria for matching bank statements for automatic bank statement processing:

  1. Profit first checks if all creditor entries must be entered on the 'Payments in transit' suspense account. If so, then this is the initial screening.
  2. Search for the invoice number in the payment reference

    If there is a payment reference in the bank statement, then this always takes precedence. The invoice number in the reference is the direct solution to the entry.

    If no payment reference is present or no match for the payment reference could be found, Profit continues the search with:

  3. Search for bank account numbers and check if there is an invoice number in the description of the outstanding items present for this bank account number.

    If there is a bank account number in the line Profit recognises, Profit then searches for the invoice number in the description of the entry in the outstanding items that are present.

    When searching for a bank account number, Profit checks debtors, creditors and the ledger account.

    If the same bank account appears for multiple debtors and creditors and there is an outstanding item for only one of them then this one is suggested for the processing of the bank statement.

  4. Search for a leader or abbreviations for an invoice in the description.
  5. Search in the description for anything that resembles an invoice number.

    Profit searches in the description for a possible invoice number (beware of invoice number limits in administration settings), to use the invoice number to find the outstanding item.

    Note:

    Debtors and creditors can only be recognised if both the invoice number and the bank account number from the bank statement are also both present in Profit. If the invoice number from the statement matches the debtor/creditor invoice number of the outstanding item in Profit but the bank account number from the statement is not known in Profit, Profit does not recognise the debtor/creditor and cannot process the statement automatically.

  6. Search for bank account number in the environment.

    When searching for a bank account number, Profit checks debtors, creditors and the ledger account.

  7. Write off the total amount for multiple invoice numbers.

    If the statement line refers to multiple outstanding items, all invoice numbers may be included in the description of the payment. If Profit recognises these invoice numbers, the outstanding items concerned are reconciled.

  8. Match the total amount with invoice amounts.

    Profit sorts the outstanding items of a debtor by age (oldest first) and adds up the amounts one by one. After each addition, Profit checks if it matches the payment amount from the bank statement. Only if this amount is an exact match, the relevant outstanding items are then reconciled.

    Example:

    You have received a payment of € 1,250.

    Profit sorts the outstanding items of the debtor concerned by age:

    €400.00 (10-10-2014)

    €600.00 (20-10-2014)

    €250.00 (22-10-2014)

    €300.00 (31-10-2014)

    Next, Profit adds the first two items together (600.00 + 400.00 = 1,000). The payment amount still does not match. After adding the next item, the amount matches: 1,000.00 + 250.00 = 1,250.00. Profit now reconciles the first three outstanding items.

    The last item (of €300.00) is not reconciled. The assumption is that this will be included in the next payment file.

  9. Search for the transaction code.

    If a transaction code is found, you can write the item off from the ledger account that is linked to this transaction code.

    You use transaction codes to automatically enter certain transactions to a certain ledger account when importing the bank statements and if necessary for allocation. You can use this, for example, for automatic entry of PIN payment receipts and credit card payments. Use Search value in the transaction code to refine the matching.

    When payments from debtors are received via a bank statement that has the same transaction code as the bank, then Profit sees that they should be entered in the debtor in question when the bank account number used for the payment appears in Profit. This means that if Profit does not recognise a bank account number because it is unknown in Profit then this bank number is created immediately for the debtor when you make the entry in the bank statement on this debtor. Note! This means that the first time you may need to change the account for the debtor's payment manually.

  10. Enter an unknown receipt as a gift

    While processing the bank statements you can register gifts directly as such. A gift is a receipt for which there is no outstanding item. Profit posts a gift as an advance payment and immediately writes it off. This allows you to enter donations easily so that you do not have to reconcile them separately.

    Profit applies this method only for receipts for which the debtor is already known and if the administration has been configured for processing gifts. If not, then this search option does not apply.

  11. Match debtors by social security number ('BSN').

    Profit only applies this method if the administration into which the bank statements are imported is set up for matching on 'BSN'. If not, then this search option does not apply.

    For the processing of bank statements, the account number must be the same as the Tax authority bank number and Search value must appear in the description of the bank statement. In the description, the word ‘nr.’ and then the ‘BSN’ also appear. After the word ‘nr.’, Profit searches up to a maximum of 9 numbers until another symbol is found. This number is formatted and checked to see if it is a valid ‘BSN’ number. After this, Profit looks to see if there is exactly 1 unblocked debtor with this ‘BSN’. (You enter the ‘BSN’ number in for the persons on the Other tab in the Social security number ('BSN') field.) A ‘BSN’ must be unique to 1 person.

    If the Match outstanding invoice check box is selected then a search is made for the outstanding items of this debtor provided that:

    • there is only 1 outstanding invoice for the debtor
    • the amount of the entry is the same as the outstanding amount
    • the amount of the entry is smaller than the outstanding amount

    If no debtor is found using the above then the rest of the matching procedure is performed - search on payment reference, search on bank account number and search on invoice numbers in the description. Thus, searching on ‘BSN’ has the highest priority in this procedure.

    Note: 

    In the situation where you do the salary processing in Profit Payroll and you have an employee who is also a creditor, the Crediteurbetaling afboeken op rekening 'Betaling onderweg'  check box must be deselected (in the Administration settings on the Read bank statements tab). Otherwise, if you pay this creditor automatically, Profit will enter all entries that are processed for this creditor as Payments in progress, including the salary entries. Even if you have a transaction code for the salaries, this field takes precedence over a transaction code.

    You need to bear in mind that you must select the Betalingen onderweg account yourself when the payment order from the creditors arrives.

Process

Electronic bank statements