Setting Matching Tolerances

You can set matching tolerances by period for the Auto-Match and Manual Match processes. You can set amounts for the Account and Manual Matching tolerance. For Transaction ID (TID) tolerance, you can specify an amount, a percentage, or both.

If you enter a percentage for Transaction ID, the system uses the smaller amount between the total of the entity's transaction and the total of the partner's transaction and applies the percentage to the amount, resulting in the tolerance amount.

For example, suppose you have three transactions from Entity A with TID 123, and the total of these transactions is 1000. Partner B with TID 123 has five transactions with a total of 1020. The difference between the entity total and the partner total is 20. However, if you specify a tolerance of 3%, the system calculates 3% of the smaller total, which is 1000 times 3%, resulting in 30. If you compare that to the difference, it would be within the tolerance and the transactions would be considered matched.

If in addition to the percentage, you enter an amount, for example, 15, the system compares the percentage amount with the amount entered and uses the smallest amount as comparison. In this example, the difference between the entity total and the partner total is 20 and the percentage tolerance is 30, but the amount tolerance is 15. This would not be considered within the tolerance and the transactions are not matched.

You can also leave the TID amount and percentage blank. If either has a zero value, or if both are blank, the system matches only transactions that have zero transaction difference.

For Account tolerance and Manual Match tolerance, the matching tolerance is represented in the application currency and the amount entered is represented in the scale factor of the application currency. During the matching process, the system converts each transaction into the application currency and compares the total difference amount to the matching tolerance set for the period. The comparison is done in units.

During the TID/RID matching process, the system does not translate the transaction to the application currency when comparing it to the TID tolerance value.