Accounting Ideas

Allow bank feed transactions to match against outstanding payments made against a bill

This is useful to complete proper bank reconciliations and due to timing of payments clearing a bank.

Ex. : Company with YE Dec 31st, makes cheque payment on Dec 30th

  • There is a $10,000 bill, which gets paid via cheque on Dec 30th.

  • Cheque does not clear the bank until Jan 10th the following fiscal year.

  • Reconciliation at Dec 31st should show $10,000 as an outstanding cheque and AP should not have $10,000 as outstanding

Under the current system, this is possible. The issue arises when the cheque clears the bank.

  • On Jan 10th, the cheque clears and the bank feed brings in the withdrawal transaction.

  • This creates a duplicate transaction unless you delete the bank feed transaction manually. This requires the bookkeeper to identify that this cheque is a duplicate by manually chequing the vendor bills, the amounts, cheque # against what was written, etc... This takes a long time if you pay a lot of your bills with cheques.

The other solution I've received is to not make a cheque payment against the bill and wait until it clears the bank to match. This is not good accounting practice as AP at year-end will be misstated by $10,000 and cash over-reported by $10,000.

  • Guest
  • Apr 22 2020
  • One For The Future
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  • Guest commented
    6 May, 2020 01:52pm

    Hey Tom,

    I think you're misunderstanding the transaction thats trying to be matched. When a transaction is created by creating a payment against a vendor bill, you cannot at this time match this transaction with the actual withdrawal transaction from the bank feed.

    Even if this was possible like you said, you should not have to delay your reconciliation until a cheque clears the bank. If a cheque takes a month or more to clear, you shouldn't delay your reconciliation. Having to tell your accountant to hold off on reviewing statements because the accounting system does not allow for outstanding cheques to be matched with bank feeds is not great.

    I wouldn't even consider this a feature to add, rather if youre going to focus on the use of bankfeeds, its a must to have for proper bank reconciliations

  • Guest commented
    4 May, 2020 04:54pm


    Thank you for submitting your idea.

    At present it is possible to match a bank feed transaction to a transaction recorded in Business Cloud but only when the bank transaction has not yet been reconciled.

    this prevents you from being offered transactions to match to that are already considered.

    This means that at present the best way to avoid this is to delay your reconciliation.

    There might be a more elegant solution for this however.