It may be necessary at times to manually-match transactions. In the example below we have two items from accounts in the same group that failed to match because of a difference in Value Date, but they could be a match given their attributes such as identical amounts and currencies.
To make a manual match, first check the boxes next to the IDs of the items you are looking to match. Next, go to the Actions menu and select Manually match.
As long as the Amount values are the same, the two items will immediately be matched, and will be placed in the Resolved bucket.
Manual matching with amount difference within tolerance level
It is possible to match transactions even there is a difference in their total net amount e.g. due to FX rate difference. To add more controls in cash reconciliation processes, you can configure a manual matching tolerance level for each account group. If the net difference between the selected transactions from both sides is larger than the tolerance (absolute amount), then user will not be able to manual match them.
The tolerance level can be configured as part of account import using CSV file, and in Account settings. Leaving it blank will set an unlimited tolerance.
Adjustment and write-off transactions
When you manually-match transactions from both sides where the net amount difference is within the configured tolerance level, Duco will create an adjustment transaction to make the overall balance neutral.
In the example below we can see the net sum of the three transactions with very small difference.
Checking these transactions enables the Actions drop-down. This menu offers the option to Manually-match the selected items, because the difference is smaller than the configured tolerance level.
As there is a difference between the amounts, Duco will automatically generate a manual adjustment transaction as a record of this discrepancy. The transaction is clearly marked as having been Manually created.
Before confirming the manual match, at this stage you can amend the default Description, Value date, Account, Amount and other attributes set for the transaction. By default, Duco will choose an Account where Allow manual transactions is set to Yes in Account settings.
You can choose to use multiple adjustment transactions by selecting Add transaction, each with its own description and amount. Duco will only allow you to proceed with the match if the overall difference is 0.
Once the user clicks Match, the match will appear in both Resolved and Manually matched categories, containing the original transactions from both sides and the adjustment transaction(s). Duco will create the write-off transactions, which have the opposite amounts to the adjustments, placing them in the Under review bucket.
It is expected that this transaction will now pass through the standard review lifecycle. If they remain unmatched, then they will be included in write-off roll-ups if the rule is enabled and applicable.
By clicking on the Linked transaction of a write-off, it will bring you to the match that it was created from. Similarly, the Linked transaction from the adjustment will bring you to its opposite write-off.
It is also possible net multiple transactions from the same side using the Manual match functionality.
In the example below are two transactions on the Ledger side have equal but opposite amounts, they can be netted with each other. To perform netting, first select the items and then select Manually match under the Actions menu. The option is only available if the net sum of selected transactions are within the manual match tolerance of its account group.
Netting will create a roll-up containing the selected transactions, where the amount is the net sum. If it is zero, the roll-up will be Resolved with status Netted. Otherwise, the roll-up will appear in Under review and assign to you.
In scenarios such as the following, you may want to manually split a transaction into multiple:
- you have received one big transaction from your counterparty
- from your ledger, there are individual transactions that match its properties, but not the full amount
- after investigation, some of the other transactions have not been fully processed internally, and you expect them to be ready next week
- you want to manually match the items that are ready now
You can do this by splitting the big transaction into 2, and match one of them with the individual internal items that are already available. To do this, first select the transaction you want to split, then select Split under Actions menu.
In the grid that appears, use Add transaction and edit amount to split it into multiple transactions. The widget on top right helps you by showing the difference between the total amount and the amount of the original transaction. Duco will only allow you to complete the split action if the difference is 0.
After clicking Split, the transactions will appear in Under review and assign to you.
See workflow history for transactions that are matched and broken apart
Cash reconciliations often have a high degree of compliance and audit oversight and therefore being able to demonstrate and review the full history of transactions is important. If an exception has workflow actions applied and is subsequently matched or rolled-up, and then broken apart, users can now see the full workflow history prior to being matched.
Detailed audit log after splitting a transaction
Being able to split transactions in cash is a useful feature to support closing out partially settled transactions (leaving only the remaining as exceptions) and also breaking down manually entered adjustments into individual transactions. It is now possible to trace back a split transaction to the original transaction and also see the full audit history of the original transaction further helping users and auditors understand the full history of actions that have taken place of individual financial transactions.