Bank Feed Rules Part 2

In the second installment of our QuickBooks Online Bank Feed Rules series we will highlight the following sections:

QuickBooks Online Bank Feed Rules:

Selecting the Transaction Type

Money Out Transactions

 The drop down selection for transaction type will be affected by your initial selection to create a Money In or Money Out Rule. 

When selecting between your money different types of transactions pay your choice will change based on your selection. We will explain the difference below:

Expense Transactions: Expense transactions will populate into your banking ledger differently than checks, which will also affect your bank reconciliations. Best practice is to utilize the expense transactions for Debit & Credit Card purchases.

Check Transaction:  When selecting a check transaction, the Intuit rules engine will attempt to locate a check number to assign to the transaction, This is very useful when setting up rules for recurring ACH payments. Transactions that are labeled as a check will appear as a check during the reconciliation process.

  • Payee:
  • Category
  • Memo

Optional Settings only available within the Plus Edition.

  • Class*
  • Division*
  • Tax Code* (if applicable to your version)

You will also have the option to create a SPLIT transaction by & or $ amount.  We will cover this a little later

Bank Feed Rules Overview Image

Money In Transactions

Deposit / Credit Card Credit: With Deposit rules you can automatically assign transactions to a specific revenue account split it across a couple.

Transfer Transaction: Transfers only require an account and a memo field.  When searching through transactions you will be able to distinguish the transactions as transfers very easily. Please keep in mind that transfer are available in both money in and money out options.  At Parkway we prefer to run all of our transfers through a clearing account to help us capture any unexpected transfer to or from personal accounts.

Parkway Bank Feed Tip:

One thing you cannot do is assign them to Uncategorized Income, so we created the account “Revenue Query“.  This account allows us to keep the banking area cleared out by sending revenues to a clearing type account till we can match the transactions to the deposit slips.

Money In Bank Feed Rules

QuickBooks Online Bank Feed Rules:

Setting Your Conditions

 Bank Memo

Every financial transaction is coded with a specific amount of data, which helps to transfer important information such as the Payee name, reference numbers and other important notes. The challenge is most of the data is all mixed together making it challenging to determine what you need.

 Bank Text: This text is the memo that is populated directly from the bank feed.  Generally it is best practice not to modify this information and it can be very useful to refer back to. This is the most common setting we use in our bank rules. Your choices include:
  • Contains
  • Doesn’t Contain
  • Is Exactly

Parkway Bank Feed Tip:

If you are import a file directly from your bank, the bank memo option will be the most important to focus on.

Using the Bank Memo in the Bank Feed Rules

Description Memo

Every financial transaction is coded with a specific amount of data, which helps to transfer important information such as the Payee name, reference numbers and other important notes. The challenge is most of the data is all mixed together making it challenging to determine what you need.

Description: The description, is the shortened version of the Bank text, which shows in the bank pending area.  Intuit uses a proprietary filtering algorithm to try to clean up the the Bank memo and suggest a payee name.  This also happens to be the area that is easiest to modify with programs such as Ledgersync.
  • Contains
  • Doesn’t Contain
  • Is Exactly

Parkway Bank Feed Tip:

Rules are not case sensitive. So you do not need to create different rules for upper vs lower case variations in the bank text,

Using the Bank Description in the Bank Feed Rules

Amount

Every financial transaction is coded with a specific amount of data, which helps to transfer important information such as the Payee name, reference numbers and other important notes. The challenge is most of the data is all mixed together making it challenging to determine what you need.

 Amount: In our previous ATM Withdrawal example, we demonstrated the benefit of using Amounts in our rule creation to create a set of Universal ATM withdrawal bank rules. By creating a scaling set of withdrawal amounts, we are able to import the bundle of rules to every account and simple change which bank the client is with.
  • Equals
  • Is Greater Than
  • Is Less Than
  • Doesn’t Equal

Amount can also be useful for greater than or less than splits. For example equipment purchases that are > than $500.00 or < than $500.00.

Setting a rule for a recurring check that Equals a certain amount can help you assign checks quickly but should only be used for unique values.

Using the Amount in Bank Feed Rules
Part 1

QuickBooks Online Bank Feed Rules

Did you miss the first installment of our 3 part series about QuickBooks Online Bank Feed Rules? 
Part 1
Part 3

QuickBooks Online Bank Feed Rules

Want to learn more about QuickBooks Online Bank Feed Rules? Check out our 3rd installment in the Bank Feed Series
Part 3

Checkout our Process Street Checklist for QuickBooks Online Bank Feed Rules

Print a copy of the checklist

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