Reconciliation Methods for Transaction Matching

Transaction Matching formats are based on one of the following reconciliation methods:

• Balance comparison with transaction matching

  This method is used to compare balances and match transactions between two distinct sources, such as source systems and subsystems. For example, you can have a point of sale system and a merchant transaction system, or you match the transactions between accounts payable and journal entries within the general ledger.

• Account analysis with transaction matching

  This method is used to match transactions within a single data source. For example, debit and credit matching. The most common use case is if you are netting off transactions within a single data source to determine the net balance for an account, such as a clearing account.

• Transaction matching only

  This method is used primarily to match transactions between two systems, without a period-end reconciliation.