Cloud Banking: Working with Downloaded or Imported Transactions

Cloud Banking: Working with Downloaded or Imported Transactions

Working with Downloaded or Imported Transactions

For those accounts that have been connected to their banks via Cloud Banking, transactions will automatically flow in on a daily basis. Working with the downloaded transactions can be a real time saver. These transactions are held in the Unapproved Transactions List in Cloud Banking until such time they are reviewed and approved. Once approved, documents are automatically created (i.e. payments) and the transaction is moved to the Approved Transaction List (Tab) and the system creates appropriate General Journal entries.

Over time, the system will attempt to categorize the transactions by assigning a vendor, an account, or a project, and class. This process will become more efficient as the system learns. This saves time as all is needed is to approve the transaction. See the section below on Categorization for more information.

Basics of the Cloud Banking Workspace

Transactions imported or downloaded automatically via Cloud Banking appear in one of three tabs:
  1. Unapproved Transactions Tab (1) - The Unapproved Transaction list is your ‘to-do’ list and represents new transactions not yet recorded in the system.
  2. Approved  Transactions Tab (2) - List of approved transactions that have been coded with a Company, G/L account and optionally a project or a class.
  3. Excluded Transactions Tab (3) - This tab holds transactions identified as duplicates, errors, or irrelevant entries, which are excluded from the Unapproved Transactions list. These transactions may be deleted completely from CustomBooks™.
The transactions may be sorted by placing the cursor in a column (not the column header), then select (left click), and then click the 'A-Z' or the 'Z-A' button (4). Clicking the Export button will open the list to another window/tab where you can print and export the list to a PDF, or MS Excel file (5). Each tab includes a Search Box to quickly find transactions by bank date, description, amount, company (customer/vendor), G/L account, project, and class. (6). The Unapproved Transactions list has a checkbox next to each transaction to give the ability to do Batch Actions: Approve or Exclude (7). There is also a Re-Categorize that will cause the system to attempt to re-categorize the transactions after rules have been created or other changes have been made (8). See the section below on Categorization for more information.



Setting Defaults for Transactions

Defaults may be set for the expense account, income account, and class fields on incoming Cloud Banking transactions for those that aren’t caught by the existing Categorization Rules (see Automatic Categorization below). When these defaults are set, all new imported transactions (either downloaded automatically or uploaded) will have these fields filled with the specified values entered.

To set the values for these default fields:
  1. Open the bank account details. Go to Accounting > Chart of Accounts, double-click the bank or credit card account to open.
  2. Go to the Import Settings Tab.
  3. Uncheck the Do Not Use checkbox and specify the desired default value for the field.



Approving Bank Transactions

Once the transactions are downloaded from the bank or imported manually, it is required to approve them before any accounting transactions occur in CustomBooks™. Here are the steps to approve transactions:
  1. Go to Bank > Cloud Banking or click the Cloud Banking icon from the Home Page/Workspace.
  2. From the Account drop-down, select the bank account that you’d like to view.
  3. In the Unapproved Transactions Tab, categorize the transactions. Assign or change, and verify the Account Code for each transaction. Accounts may be created on the fly if they do not exist. To create an account on the fly, click on the Account Code drop-down button > click 'Show All' > on the Chart of Accounts popup window, click Create > New Account.
  4. Choose a Customer/Vendor from the drop-down list (optional). Customers/Vendors may be created on the fly if they do not exist. Bank transactions with merchant names can be mapped to existing customers or vendors as well.*
  5. Choose a Project from the drop-down list if applicable (optional). Projects may be created on the fly if they do not exist.
  6. Select a Class from the drop-down list if applicable (optional). Classes may be created on the fly if they do not exist.
  7. If there is a transaction or a document already existing in the system (either converted from another software or entered manually) for a bank transaction, choose Match from the New, Match or Transfer column. See the section below about matching for more details about matching bank transactions. If it’s a transfer, choose New Transfer. If no other transaction currently exists in the system, select New. Also, you can now split transactions in Cloud Banking.
  8. Once you have finished categorizing or matching transactions, proceed to approve them.
    1. To approve a bank transaction: Select the bank transaction and click the Approve button in the Action column.
    2. To approve by batch: Check the checkbox to mark or select multiple the transactions > click the Batch Actions button > then choose Approve Selected.
  9. After completing the steps above, transactions will be moved and can be viewed in the Approved Transaction Tab. The process of approving transactions automatically generates the appropriate transaction in the General Ledger.


*see the section below on Merchant Name/Company mapping.

Mapping Merchant Name

In Cloud Banking, the Merchant Name on bank transactions typically refers to the name of the business or individual where the transaction occurred. This is the entity that processed the payment, and it's usually provided by the bank or financial institution in the transaction details. The Merchant Name helps users identify where they spent money or received funds from. If available, the Merchant Name is included in the information received from your bank. This can be used in Categorization Rules (auto categorization) to assist you with coding transactions. CustomBooks™ maintains a mapping table that associates the Merchant Name sent by the bank with the corresponding company in CustomBooks™.

When choosing a Company in an unapproved transaction, you will be asked via a prompt if you wish to automatically save the mapping for future use. 'Yes' will add the mapping, then 'No' button will not. If you approve 3 transactions that all contain the same Merchant Name/Company combination, the mapping will be added for you automatically as well.



You can create, edit or delete mappings from the table if needed. To access the table or list of Merchant Name/Company Mapping: Go to Bank > Merchant Name/Company Mapping.



Matching Bank Transactions

The Match Transaction feature in CustomBooks™ links transactions from your bank to corresponding documents in the system. By matching a bank transaction with a document, you prevent duplicate entries (e.g., matching a deposit or customer payment with a Cash Receipt). Additionally, matching a bank transaction with a document automatically creates and links the succeeding document (e.g., when you match a deposit to a Sales Invoice, Cloud Banking will generate a Cash Receipt, update the Invoice status, and link it to the Sales Invoice). This is a powerful feature that can save a lot of data entry time and headaches searching for duplicates.

To match a transaction:
  1. In the Unapproved Transactions Tab, select the bank transaction and then choose the Match option in the New, Match, or Transfer column.
  2. A pop-up window appears with a list of recommended and possible matches (for more details about Recommended and Possible Matching, see the section below). If no possible matches are present, click the Show: All option to show all available documents to match. Check the box to mark or select the document to match.
  3. Click the Match button to have the system match the transaction/document(s).
  4. Approve the bank transaction to complete the matching.


For a visual guide on Approving and Matching bank transactions in CustomBooks™ Cloud Banking, watch the short video below or go to this video link.



Transactions Matching Guide

In CustomBooks™, the Transactions Matching feature in Cloud Banking helps you easily reconcile your bank transactions with the appropriate documents within the system. Here's how it works:

Deposits: These represent any money coming into your bank account. In Cloud Banking, Deposits can be matched with the following documents:
  1. Deposits
  2. Cash Receipts
  3. Sales Invoices
  4. Cash Sales
  5. Journal Entry (Line Reconciliation)
Withdrawals: These are the transactions where money is going out of your bank account. Withdrawals in Cloud Banking can be matched with:
  1. Payments
  2. Bills
  3. Bill Payments
  4. Journal Entry (Line Reconciliation)
Bank Transactions
CustomBooks™ Documents
Deposits
Deposits

Cash Receipts

Sales Invoices

Cash Sales

Journal Entry
Withdrawals
Bill

Bill Payments

Payments

Journal Entry
Cloud Banking presents recommended or possible matches to help you quickly reconcile your transactions. The matching process uses the following criteria:
  1. Customer/Vendor: The name entered in the Customer/Vendor column is used to filter documents.
  2. Merchant Name: If the bank transaction has a merchant name that is mapped to a customer/vendor, this information is used to suggest matches.
  3. Bank Description: The system also checks the bank description for the presence of the customer/vendor name from the document to refine the match.
We're continuously working on improving the accuracy of these recommended matches. If you notice that your recommended matches are not accurate or no matches are showing, please reach out to our support team for assistance.

Unapproving Bank Transactions

If you need to un-approve a transaction for any reason, you may do so in Cloud Banking.
  1. Go to Bank > Cloud Banking or click the Cloud Banking icon from the Home Page/Workspace.
  2. From the Account drop-down, select the bank account that you’d like to view.
  3. In the Approved Transactions Tab, locate and select the transaction(s) to un-approve. Check the checkbox to mark or select multiple the transactions.
  4. Click the Unapprove Selected button to un-approve. The transaction will be moved back to the Unapproved Transactions Tab. Please be aware that any documents automatically generated by Cloud Banking during the approval process will be deleted.

Excluding Transaction

Transactions may be excluded by selecting one or more transactions and choosing the Exclude Transaction(s) from the Batch Actions drop-down button. The transactions will be moved to the Excluded Transactions Tab where they may be (1) Moved back to Unapproved Transactions Tab, (2) Sorted, (3) Exported, (4) Filtered (by Date or through Search), or (5) Permanently deleted. Note: Split transactions may not be excluded.



Automatic Categorization using Categorization Rules

In Cloud Banking, the auto categorization feature simplifies the process of managing your bank transactions. When Categorization Rules are set up, the system will automatically assign a customer/vendor, account, project, class, and even auto-approve transactions based on the matching description defined in the rule. This automatic categorization can significantly save time.

Cloud Banking uses specific Match Types alongside bank description patterns to accurately categorize transactions. These Match Types include:
  1. Contains: Matches transactions where the bank description contains specific text.
  2. Exact Match: Matches transactions where the bank description exactly matches the specified text.
  3. Starts With: Matches transactions where the bank description begins with the specified text.
  4. Ends With: Matches transactions where the bank description ends with the specified text.
  5. Do Not Use: Do not use the bank description pattern.

Adding Categorization Rule

To add or create a categorization rule manually from the list Categorization Rules:
  1. Go to Bank > Categorization Rules.
  2. Click the Create > New button.
  3. To 'Apply to a specific bank account', check the box and then enter or select the bank account.
  4. Choose the Merchant Name from the drop-down if applicable.
  5. Choose the Match Type from the drop-down.
  6. In the Bank Description Pattern field, enter the text pattern that should match or appear in the bank description in every bank transaction.
  7. In the Company field, enter the customer or vendor name you want the system to use for this pattern.
  8. Choose the Account Code from the drop-down.
  9. Choose a Project or a Class from the drop-down, if applicable.
  10. Check the box to 'Auto-approve' bank transactions that matched the categorization rule patter, if desired.
  11. Check the 'Do not categorize' box to skip transactions with this pattern when categorizing and do not show new categorization rule pop-up in Cloud Banking.
  12. Click Save/Save and Close to complete and save the rule.


Adding Categorization Rule from a bank transaction in Cloud Banking

To add or create a categorization rule from a bank transaction in Cloud Banking:
  1. Go to Bank > Cloud Banking or click the Cloud Banking icon from the Home Page/Workspace.
  2. From the Account drop-down, select the bank account that you’d like to view.
  3. In the Unapproved Transactions tab, find and select the transaction to which you want to add a rule. Click the 'Add Categorization Rule' button in the Action column to open the New Categorization Rule pop-up window.
  4. To 'Apply to a specific bank account', check the box and then enter or select the bank account.
  5. The Merchant Name will auto-populate if the bank transaction includes a merchant name.
  6. Choose the Match Type from the drop-down.
  7. In the Bank Description Pattern field, enter the text pattern that should match or appear in the bank description in every bank transaction.
  8. In the Company field, enter the customer or vendor name you want the system to use for this pattern.
  9. Choose the Account Code from the drop-down.
  10. Choose a Project or a Class from the drop-down, if applicable.
  11. Check the box to 'Auto-approve' bank transactions that matched the categorization rule patter, if desired.
  12. Check the 'Do not categorize' box to skip transactions with this pattern when categorizing and do not show new categorization rule pop-up in Cloud Banking.
  13. Click the OK button to complete and save the rule.
  14. Click the 'Re-categorize' button to apply the categorization rule created and automatically categorize all the bank transactions.

To enhance the system’s accuracy, you may want to manage the categorization rules. This feature allows you to fine-tune the criteria the system uses when categorizing transactions automatically.

For a visual guide on creating a Categorization Rules in CustomBooks™ Cloud Banking, watch the short video below or go to this video link.



View, Edit and Delete a Categorization Rules

Rules may be viewed, modified or deleted from the Categorization Rules List. Go to Bank > Categorization Rules. 
  1. To edit a rule: Double-click to open, make any necessary changes and then save.
  2. To delete a rule: Select or highlight the rule, right-click, then choose Delete; Or click the More Actions button at the top-right > Edit > Delete.


Bank Transfer

When a transfer occurs between two bank accounts in Cloud Banking, it should be managed using the Bank Transfer feature. Approving a transfer transaction in Cloud Banking automatically creates a Bank Transfer document. This document records the movement of funds between the two accounts, ensuring accurate tracking of transactions within CustomBooks™.

To approve a bank transfer:
  1. Go to Bank > Cloud Banking or click the Cloud Banking icon from the Home Page/Workspace.
  2. From the Account drop-down, select the bank account that you’d like to view.
  3. In the Unapproved Transactions tab, find and select the transfer transaction, choose the transfer to or transfer from bank account in the Account Code drop-down.
  4. In New, Match, Transfer column, choose New Transfer and then click the 'Create New Bank Transfer' button.
  5. To approve and create a Bank Transfer document, click the Transfer button in the Action column. The created Bank Transfer document can be matched to the corresponding bank account in Cloud Banking where the transfer took place.


For a visual guide on approving a Bank Transfer in CustomBooks™ Cloud Banking, watch the short video below or go to this video link.



Using an Offline Account with Cloud Banking

If your bank is not among the supported institutions, or if you prefer not to connect it to Cloud Banking, you can add it as an offline account. Accounts created in the Chart of Accounts with a type of either Cash and Cash Equivalent (Bank) or Other Current Liability (Credit Card) will appear in the Cloud Banking account drop-down menu. Transactions can be imported into these bank accounts (refer to the section on Importing Bank Transactions for details).

Categorization Rules also work for offline accounts. After categorizing or creating categorization rules, you can click the Re-categorize button. This will prompt the system to automatically assign customers/vendors, accounts, projects, or classes based on the transaction patterns.

Importing Bank Transactions

Through the Bank Import Wizard, you can upload bank transactions into Cloud Banking for historical purposes or when using an offline account. This feature allows you to maintain a complete and accurate transaction history, even if your bank is not directly connected to Cloud Banking. The Bank Import Wizard is designed to help users to import bank transactions into CustomBooks™ manually and this feature is particularly useful for those who prefer or need to handle their banking data outside of direct bank feeds.

The Bank Import Wizard supports a variety of file formats to ensure compatibility with different banking systems and user preferences. The supported formats are:
  1. *.CSV
  2. *.QBO
  3. *.IIF
  4. *.QIF
  5. *.QFX
  6. *.OFX
  7. *.TXT

Steps to Import Bank Transactions

  1. Go to Bank > Cloud Banking or click the Cloud Banking icon from the Home Page/Workspace.
  2. From the Account drop-down, select the bank account that you’d like to view.
  3. In the Unapproved Transactions tab, click the Upload/Import from a File button (CSV icon) on the yellow command bar. It might be in the More Actions drop-down depending on your resolution or screen size.
  4. Download the import file from the bank. Login to the bank website and then download the bank transactions. The Bank Import Wizard supports *.csv, *.qbo, *.iif, *.qif, *.ofx, and *.txt formats. When the file is downloaded and ready to import:
    1. For importing *.CSV format: Click the Open Import Wizard button to open the File Mapping window.
    2. For other file types: Click the Continue button, choose the file from your computer disk, and skip to step 7.
  5. File Mapping. On the Import Wizard: File Mapping window, choose the file from your computer disk. Enter the column # that correspond to the CustomBooks™ Fields or select it from the CustomBooks™ Field column. Once the file mapping is done, click the Continue button.

    CustomBooks™ Fields: Date, Description, Money in (deposit), Money out (payment), Money in and Money out (if the deposit and payment amount is in the same column), Check Number, Memo, Currency.
  6. File reading and Consistency check. The Bank Import Wizard will show a preview of the bank transactions, it also shows if there are errors or incorrect mapping. Using the Back button, you can review and correct the mapping. Click Continue button to proceed.
  7. Specifying the Date Range. Choose whether you would like to upload all the transactions or specify the date range. Then click the Continue button to finalize and complete the bank transactions import.



For more information and detailed steps on how to import bank transactions in Cloud Banking, please refer to this knowledgebase article about the Bank Import Wizard.


For a visual guide on importing bank transactions in CustomBooks™ Cloud Banking, watch the short video below or go to this video link.



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