Auto-matching invoices to transactions

AR Management - This article explains the auto-matching logic for the Bank Statement Matching feature.

Required packages and permissions

Available with:  Lumary 22.82 and later

Permission: Lumary AR - AR Management & Lumary AR - EFT Matching

Lumary AR Management features do not necessarily come as standard. If these features are not available to your users, please contact your Account Manager.

This feature currently does not handle transactions from credit card payment gateways or refund transactions. These transactions should be ignored in the matching process and handled manually.

Auto-Matching in Lumary is an automated process of matching bank transactions in an uploaded bank statement to outstanding invoices.

You can find the outcome of the transaction auto-matching process by navigating to the All Transactions tab. Auto-matched transactions have an outcome of Auto-Matched.

Auto-Matching Threshold

Within Lumary, there is a setting called ‘Matching Amount Threshold’ which will allow you to specify a threshold at which the system will still go ahead and automatch a Transaction with a Invoice, even if the the transaction amount does not match the Balance Due amount on the Invoice exactly. As long as the variation is still within the value specified, the system will still automatch. This will help deal with situations where the payee rounds the payment up or down.

You can update the Matching Amount Threshold setting by following these steps:

1. Use the App Launcher to open AR Management
2. Click Settings
3. Update the Matching Amount Threshold field as a dollar value
4. Click Save

Auto-Matching Logic

Lumary will use the following logic to automatch transactions:

• Auto-Match based on the Invoice Number:
  • If the Invoice Number appears in the transaction description, the system will search for an Invoice where:
    • The Invoice Number is the same as the one in the Transaction Description, and
    • The balance due on invoice is the same as the transaction amount, taking the threshold setting into consideration, and
    • The Invoice has not already been reconciled with another transaction.
• Auto-Match based on the Client or Debtor Contact’s Last Name:
  • If the client or client contact’s last name appears in the transaction description, the system will search for all invoices where:
    • The Debtor Contact on the Invoice is the same as the Client, and
    • The balance due on invoice is the same as the transaction amount, taking the threshold setting into consideration, and
    • The Invoice has not already been reconciled with another transaction.
• Auto-Match based on Plan Manager’s Name:
  • If the Plan Managers Name appears in the transaction description, the system will search for all invoices where:
    • The Debtor Contact on the Invoice is the same as the Client, and
    • The balance due on invoice is the same as the transaction amount, taking the threshold setting into consideration, and
    • The Invoice has not already been reconciled with another transaction.
• Auto-Match based on Description:
  • The system will check and search for previous transaction items (with transaction dates from the last 90 days) with the same description as the current Transaction Item Description. The system will then update the Debtor with the matched Transaction Items debtor and then will find a Invoice to automatch against where:
    • The Debtor Contact on the Invoice is the same as the Client and
    • The balance due on invoice is the same as the transaction amount, taking the threshold setting into consideration and
    • The Invoice has not already been reconciled with another transaction.

If the system finds multiple Invoices to match the transaction against, the system will not go ahead and automatch. The system will flag if there were Multiple Potential Matches Found.