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Precision Matching: Understanding Matching Rejections With Account Guardian

What is Precision Matching?
Precision Matching is an advanced feature within our Accounting Guardian that ensures the accuracy of transaction matches before finalizing them in your account. This functionality checks that transaction details align with the accompanying documents based on specific rules, enhancing the reliability of your financial records.

Precision Matching

How does Precision Matching work?
Precision Matching applies several rules to validate transaction matches:

Internal Movement Matching:
- Same Currency: Transactions must match exactly in amount.
- Different Currency: Transactions are checked against the currency exchange rate with a ±5% error margin to accommodate small fluctuations. For example, if transaction 1 is for -179 EUR and transaction 2 is for 188 USD on Feb 7 with an exchange rate of 1.09 EUR>USD, the adjusted range after applying ±5% would be between 185.35 and 204.86 USD. Since 188 USD falls within this range, the matching is accepted.

More information here.

Refund for Personal Expenses:
- Transactions must be of the same amount.
- At least one party involved in the transaction must be a company member. This is verified by matching the transaction’s recipient or sender against the first and last names of the company members.

More information here.

Bank and State Fees:
- These should always be matched with negative (outgoing) transactions.

Sales Invoices:
- Must be matched with positive (incoming) transactions. Exceptions are made for credit/refund sales invoices, which can be matched with negative transactions upon confirmation.

Purchase Invoices:
- Must be matched with negative (outgoing) transactions. Exceptions are made for credit/refund purchase invoices, which can be matched with positive transactions upon confirmation.

- Must be matched with outgoing transactions where the recipient is a shareholder member of the company.

Share Capital Contributions:
- Must be matched with incoming transactions where the recipient is a shareholder member of the company.

Card Verifications:
- Matchings must be for small amounts (<= ±1€).

Daily Allowance:
- Can only be matched with outgoing (negative) transactions, and the amount cannot exceed the daily allowance specified for the trip. If the trip is not approved or does not specify a daily allowance, matching is not allowed.

Commission earnings:
- These can only be associated with incoming (positive) transactions and the amount should be reasonably small, reflecting typical small commission values. For example, a 100€ incoming transaction can hardly be considered a small commission for an occasional referral or affiliation fee.

For more detailed explanations and examples on specific types of transaction matching, please visit our detailed guides here.

How do I use Precision Matching?
Simply proceed with your usual transaction entries in Companio. Precision Matching will automatically verify the accuracy of each match based on the rules outlined. If any discrepancies are detected or confirmations are required, you will be prompted to take the necessary action.

This feature is designed to streamline your accounting processes and ensure that all transactions are recorded accurately, giving you peace of mind and more time to focus on your business growth.

Updated on: 24/04/2024

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