Bank Reconciliation

Bank reconciliation is the process of matching your bank statement lines to corresponding entries in your accounting ledger. This ensures that every transaction on your bank account is properly recorded, categorised, and posted.

Ayiza provides a Bank Reconciliation Worklist where you work through unreconciled lines and a set of Bank Reconciliation Rules that can automate the process.

Why bank reconciliation matters

• Accuracy — Confirms that your books match what the bank reports.
• Completeness — Ensures no transactions are missed or duplicated.
• Timeliness — Bank fees, interest, and direct debits are recorded promptly.
• Audit readiness — Every bank transaction has a clear, traceable link to a ledger posting.

The Bank Reconciliation Worklist

The worklist shows all unreconciled bank statement lines for a selected company code and bank account.

1. Navigate to Banking > Bank Reconciliation Worklist.
2. Select your Company Code and optionally filter by Bank Account.
3. The list shows each unreconciled line with its date, amount, description, and debit/credit indicator.
4. Click on a line to open the reconciliation dialog.
5. Choose the appropriate reconciliation method (see below).
6. Complete the required fields and confirm.

When you reconcile a line, Ayiza creates the corresponding accounting document and posts it to the general ledger automatically. The statement line status changes to Reconciled.

Bank Reconciliation Overview

Before diving into individual lines, you can check the Bank Reconciliation Overview tile. This shows the reconciliation status across all bank accounts for a company code — how many lines are reconciled, partially reconciled, or still open. Use it to prioritise which accounts need attention.

Reconciliation categories

Ayiza organises reconciliation into four categories. Each category determines which fields are visible in the reconciliation dialog and which posting actions are available.

1. Customer Payment

Use when: The transaction is an incoming payment from a customer — advance payments, deposits, or identified receipts.

Visible fields:

Field	Required?	Description
Business Partner	Yes	The customer who made the payment.
Project Code	No	Optional project assignment for cost tracking.

Available actions:

• Post directly — Post the payment to the customer's account without matching invoices. Creates an open credit that can be matched later.
• Match items — Match against one or more open customer invoices.
• Write-off — Post directly with a write-off for the full amount (e.g., bank fee deducted from payment).
• Match items + write-off — Match invoices and write off the remaining difference.

Hidden fields: G/L Account, Bank Account, Tax Code.

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2. Supplier Payment

Use when: The transaction is an outgoing payment to a supplier — advance payments, or payments where the invoice has not yet been received.

Visible fields:

Field	Required?	Description
Business Partner	Yes	The supplier who received the payment.
Project Code	No	Optional project assignment for cost tracking.

Available actions:

• Post directly — Post the payment to the supplier's account without matching invoices.
• Match items — Match against one or more open supplier invoices.
• Write-off — Post directly with a write-off.
• Match items + write-off — Match invoices and write off the remaining difference.

Hidden fields: G/L Account, Bank Account, Tax Code.

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3. General Ledger (Other Transaction)

Use when: The transaction is a direct expense, income, or fee that should be posted to a specific G/L account — for example, bank charges, interest income, or subscription payments.

Visible fields:

Field	Required?	Description
G/L Account	Yes	The target general ledger account. Only accounts without a control account type are available.
Tax Code	Conditional	Required if the company code is active for tax.
Withholding Tax	No	Optional, if the company code is active for withholding tax.
Business Partner	No	Optional reference to a business partner.
Project Code	No	Optional project assignment.

Result: Ayiza creates a journal entry that debits/credits the selected G/L account and the corresponding bank clearing account.

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If the bank account is a payment card, only the General Ledger category is available. The Business Partner field is automatically set to the business partner from the bank account master data and displayed as read-only.

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4. Interbank Transfer

Use when: The transaction represents money moving between two of your own bank accounts — for example, transferring funds from a current account to a savings account.

Visible fields:

Field	Required?	Description
Bank Account	Yes	The other bank account involved in the transfer.

Hidden fields: G/L Account (determined automatically via account determination), Business Partner, Tax Code, Project Code.

Result: Ayiza creates a journal entry that moves the amount between the two bank G/L accounts. The clearing account is determined automatically. The corresponding line on the other bank statement (if it exists) can be reconciled in the same way.

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Matching invoices

For Customer Payment and Supplier Payment categories, you can match the bank statement line against open invoices.

1. Select the statement line in the worklist.
2. Choose the Customer Payment or Supplier Payment category.
3. Select the Business Partner.
4. Click Match Items.
5. Ayiza shows a list of open invoices for the selected business partner.
6. Select the invoice(s) that this payment covers.
7. Confirm.

Result: Ayiza creates a payment document, clears the selected invoices, and posts everything to the ledger. The invoices change to Cleared status.

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If the payment amount does not match any single invoice exactly, you can select multiple invoices whose combined total equals the payment amount. If there is a remaining difference, use the Match items + write-off option instead.

Write-offs

Write-offs handle small differences between expected and actual payment amounts. Ayiza uses write-off reasons (configured in account determination) to determine which G/L account receives the difference.

Write-off reasons

Before using write-offs, you need to configure write-off reasons:

1. Navigate to Configuration > Account Determination.
2. Set up write-off reasons (e.g., "Cash Discount", "Rounding Difference", "Bank Charges", "F/X Difference").
3. Each reason is linked to a G/L account where the write-off amount is posted.

Scenario 1: Direct write-off (no matching)

Use case: Under-payment, discount, rebate, damaged goods, or foreign exchange differences where you do not need to match against a specific invoice.

1. Select the statement line.
2. Choose Customer Payment or Supplier Payment category.
3. Select the Business Partner.
4. Click Write-off (without matching any invoices).
5. Select a write-off reason from the configured list.
6. Confirm.

What Ayiza posts:

• Debit/Credit to the bank account.
• Offset to the write-off G/L account (determined by the write-off reason).
• Business partner reference is maintained on the posting.

Example: A £5 bank fee was deducted from a payment to Supplier ABC. You write off the £5 to the "Bank Charges" account.

Scenario 2: Write-off with matching (residual amount)

Use case: A payment does not exactly match the invoice(s) due to a discount, rounding, or partial short payment.

1. Select the statement line.
2. Choose Customer Payment or Supplier Payment category.
3. Select the Business Partner.
4. Click Match Items and select the invoice(s).
5. Ayiza calculates the difference between the payment amount and the total of the selected invoices.
6. Click Write-off difference.
7. Select a write-off reason.
8. Confirm.

What Ayiza posts:

• Invoice clearing for the matched amount.
• Write-off posting for the difference to the write-off G/L account.
• All postings linked to the same business partner.

Example: A customer owed £1,000 on an invoice but paid £995. You match the invoice and write off the £5 difference as "Payment Discount".

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The posting date for all reconciliation postings is the booking date of the bank statement line, not the current date or the statement date.

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Summary of reconciliation options

Category	Post Directly	Match Invoices	Write-off	Match + Write-off
Customer Payment	✓	✓	✓	✓
Supplier Payment	✓	✓	✓	✓
General Ledger	✓	—	—	—
Interbank Transfer	✓	—	—	—

Bank Reconciliation Rules

Instead of reconciling every line manually, you can define rules that automatically categorise and reconcile statement lines.

What is a reconciliation rule?

A rule is a set of conditions that, when matched against a statement line, tells Ayiza how to reconcile it. Rules are specific to a company code and optionally to a specific bank account. Each rule specifies:

• Conditions — What to match on (description, reference, amount, partner name, etc.).
• Reconciliation category — How to reconcile (General Ledger, Customer Payment, Supplier Payment, or Interbank Transfer).
• Target — The specific G/L account, business partner, or bank account to post to.
• Tax code — An optional tax code for VAT handling.
• Rank — The priority order (lower rank = evaluated first).
• Auto-reconcile — Whether matching lines should be reconciled immediately or flagged for review.

Creating a rule

1. Navigate to Banking > Bank Reconciliation Rules.
2. Click Create.
3. Fill in the rule fields:
   • Company Code — The company code this rule applies to.
   • Bank Account (optional) — Restrict the rule to a specific bank account, or leave blank to apply to all accounts in the company code.
   • Debit/Credit — Whether the rule applies to debit transactions, credit transactions, or both.
   • Reconciliation Category — Choose from: General Ledger, Customer Payment, Supplier Payment, or Interbank Transfer.
   • Target — Select the G/L account, customer, supplier, or interbank account depending on the category.
   • Tax Code (optional) — Assign a tax code if applicable.
   • Rank — Set the priority. Rules with lower rank numbers are evaluated first.
   • Match All Conditions — If enabled, all conditions must match. If disabled, any single condition matching is enough.
   • Auto-Reconcile — If enabled, matching lines are reconciled automatically without manual review.
4. Click Save.

Adding conditions to a rule

After creating the rule, add one or more conditions:

1. Open the rule.

2. In the conditions section, click Add Condition.

3. Select the Field to match on:

   Field	Description
   Description	Transaction description text
   Reference	Bank reference or transaction ID
   Amount	Transaction amount
   Currency	Transaction currency code
   Partner Name	Counterparty name
   Partner IBAN	Counterparty IBAN
   Partner BBAN	Counterparty BBAN (domestic account number)
   Partner Bank Code	Counterparty bank/sort code
   Mandate ID	Direct debit mandate identifier

4. Select the Operator (e.g., contains, equals, starts with, between).

5. Enter the Value(s) to match against.

6. Save the condition.

You can add multiple conditions to a single rule.

How auto-reconcile works

The Auto-Reconcile flag on a rule controls what happens when a line matches:

• Auto-Reconcile ON: When a line matches this rule, it is reconciled immediately — an accounting document is created and posted without manual review. The statement line is flagged as IsReconcilable for tracking.
• Auto-Reconcile OFF: When a line matches this rule, the reconciliation fields are pre-filled (category, target account, tax code, etc.) but the line is not posted. You review the pre-filled data and confirm with one click.

Applying rules

Once your rules are set up:

1. Open the Bank Reconciliation Worklist.
2. Click Apply Rules.
3. Ayiza evaluates each unreconciled line against your rules in rank order.
4. Lines that match a rule with Auto-Reconcile enabled are reconciled immediately.
5. Lines that match a rule without auto-reconcile are pre-filled with the rule's settings, ready for you to review and confirm.
6. Lines that do not match any rule remain unreconciled for manual processing.

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Start with a small number of high-confidence rules (e.g., recurring bank fees that always have the same description) and expand over time as you identify more patterns. Enable auto-reconcile only for rules you are very confident about.

Tax code handling

When reconciling a bank statement line with the General Ledger category, you may need to account for VAT or other taxes.

When to apply a tax code:

• Bank fees that include VAT (some UK bank charges include 20% VAT).
• Subscription payments where the supplier is VAT-registered.
• Any transaction that has a tax component you need to reclaim or report.

How it works:

• When reconciling with the General Ledger category, select the appropriate Tax Code in the reconciliation dialog.
• Ayiza automatically calculates the net and tax amounts based on the tax code's rate.
• The posting splits the amount between the expense/income account and the VAT input/output account.
• If the company code is active for tax, the Tax Code field is mandatory.

In reconciliation rules: You can assign a tax code to a rule so that every line matched by that rule is posted with the correct VAT treatment automatically.

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Tax codes are only relevant for the General Ledger category. Customer Payment and Supplier Payment categories do not show a Tax Code field — the tax treatment is determined by the invoice being matched or the business partner's tax settings.

Next steps

• Bank Statements — Learn how to import and manage your statements.
• Cash Flow Forecast — Project your future cash position from open receivables and payables.