About Cash Matching

Cash Matching allows you to match outstanding transactions for either a selected accountClosed In this context, accounts are organizations or people that you conduct business with, such as customers or vendors. Account is a standard Salesforce object. Certinia accounts can be any Account Record Type. or for multiple accounts that belong to a single cash matching account group. Typically, you might match a cash receipt against one or more sales invoices on the account. Accounting must be in single-company modeClosed State in which the current user has only one current company selected. Data entry is enabled..

Note: The matching date must be set to the date the payment is received. If not, invoices might be included in As of Aging reports even when they are paid.

Simple Matches

For example, you have received and posted a payment from a customer for $100. The cash matching page for that customer shows this cash entryClosed A record of money received from, or refunded to, your customers, often in the form of cash or a check. Also used to record payments to and refunds from vendors. and three invoices for $10, $30 and $60 respectively.

To create a match, select the cash entry line and all three invoice lines.

All transaction account lines are given a status of "Matched" and will no longer be available for matching.

Part-Payments

For example, you have received and posted a payment from a customer for $90. The cash matching page for that customer shows this cash entry and an invoice for $100.

To record a part-payment, select the cash entry and enter –90.00 into the Paid column on the invoice line.

The cash entry line is given a status of "Matched", but the invoice line remains at "Available". Its outstanding value is reduced to $10.

Overpayments

For example, you have received and posted a payment from a customer for $110. The cash matching page for that customer shows this cash entry and three invoices for $10, $30 and $60 respectively.

To record an overpayment, enter –100.00 into the Paid column of the cash entry line and select the three invoices.

The invoice line items are given a status of "Matched", but the cash entry line remains at "Available". Its outstanding value is reduced to $10.

Settlement Discounts 

For example, you have received and posted a payment from a customer for $95 within the agreed period for a 5% settlement discount. The cash matching page for that customer shows this cash entry and an invoice for $100.

To record a settlement discount, enter the Discount Date then select the cash entry line and the invoice line. The paid and discount values are updated automatically based on the currency mode, the discount date and the credit termsClosed Set of terms used to determine due dates and discounts for the goods and services bought or sold. Terms can be set at account level for vendors and/or company level for customers. in force when the invoice was posted.

Make sure that the correct values of 95.00 and 5.00 are displayed on the invoice line in the Paid and Discount columns respectively. You can amend the values in both columns, but you must reach a match total of zero in order to commit the match. ( If you can't see a Discount column, contact your administrator.)

The value of the discount is posted as a cash matching journal line item to a settlement discount general ledger account. The default corporate or local general ledger account is specified on the company record, but you can amend this default account on the cash matching page.

All transaction account lines are given a status of "Matched" and will no longer be available for matching.

Write-Offs

For example, you have received and posted a payment from a customer for $99. The cash matching page for that customer shows this cash entry and an invoice for $100. You want to write off the balance.

To record a write-off, select the cash entry and then enter 99.00 and 1.00 in the Paid and Write-off columns respectively on the invoice line. When you reach a match total of zero, you can commit the match. (If you can't see a Write-off column, contact your administrator.)

The value of the write-off is posted as a cash matching journal line item to a write-off general ledger account. The default corporate or local general ledger account is specified on the company record, but you can amend this default account on the cash matching page.

All transaction account lines are given a status of "Matched" and will no longer be available for matching.

Write-offs for sales invoices and billing document invoices can also be completed as a background process, with write-offs being completed in bulk. For more information, see the Accounts Receivable Write-Off Process topic.

Multi-GLA Cash Matching

By default, only matching within a single GLA is possible. However, you can use different GLAs during cash matching by enabling the Allow Different Matching GLAs field in the Cash Matching Settings custom setting. For more information, see Cash Matching Settings.

For example, you can use multi-GLA cash matching to:

  • Match a sales invoice to a payable invoice if they both have different GLAs.
  • Record a currency write-off as long as the different GLAs are used for either the cash entry lines or the transaction lines. Note that using different GLAs might not be suitable for all the matches that include values for currency write off. If the currency write-off across multiple GLAs cannot be recorded, we recommend using an auxiliary GLA instead. For more information, see Matching to a Specific GLA via Auxiliary GLA.

When matching across multiple GLAs, Accounting automatically posts the paid value as a cash matching journal line item to the matched line item's GLA, but with an opposite debit or credit value.

The balancing GLA journal line ensures the correct cumulative balances. For example, when matching a $100 sales invoice to a $100 payable invoice, the accounts receivable control GLA must be credited by $100, while the accounts payable control GLA has to be debited by $100.

Matching to a Specific GLA via Auxiliary GLA

Using an auxiliary GLAClosed The general ledger account used when performing cash matching to a specific GLA. The default auxiliary GLA can be set on each accounting company record. during cash matching enables you to match cash entries, payable and sales documents, and journal account lines to a specific GLA. You can specify an auxiliary GLA when committing a match in the Select Journal Details window on the Cash Matching page, or set a default corporate or local auxiliary GLA on each accounting company record.

For example, you can use an auxiliary GLA to perform cash matching across different accounts by:

  • Matching payments made by a parent company for multiple subsidiary companies.
  • Matching intercompany transactions to a loan account and net them off periodically if you do not settle each intercompany invoice by cash.
  • Using the auxiliary GLA as a foreign currency clearing GLA. This is useful when a customer pays an invoice to a bank account that uses a currency other than the invoice currency.
Example:

To match a cash entry to a specific GLA when there are no related transactions, do the following in the Cash Entry grid:

  1. Select the cash entry that you want to match.
  2. Clear the value in the Paid column.
  3. Enter the amount to be matched to a specific GLA in the Auxiliary GLA column until the match total displays zero. If you cannot see an Auxiliary GLA column, contact your administrator.

If the related transaction cannot be matched directly to this cash entry, but is matched to a specific GLA:

  • Both lines will have a status of "Matched"
  • The document values will be netted off on the auxiliary GLA

Because of this, you might need to periodically clear the resulting home, dual, or reporting values using the Override Currency Values feature. For more information, see Overriding Currency Values and Rates on a Journal.

When matching to a specific GLA, Accounting automatically:

  1. Generates a cash matching journal
  2. The value of the auxiliary GLA is posted as a cash matching journal line item to an auxiliary GLA general ledger account
  3. All transaction account lines are given a status of "Matched" and will no longer be available for matching.

Currency Write-Offs

Accounting automatically generates a currency write-off journal when there is a difference in the exchange rate between the date an invoice was created and when payment was received from the customer. The invoice and the payment are each converted from the document currency to account, home and dual currency on the date they are created. If the exchange rate has changed, then the payment will be converted at a different rate.

The exchange rate differences are posted as cash matching journal line items to a currency write-off account. The default corporate or local general ledger account is specified on the company record, but you can amend this default account on the Cash Matching page.

If the lines selected during cash matching involve a currency write-off, you can now select either a cash entry account or GLA, or a transaction account or GLA, to apply the realized exchange difference. You can select them from the new Currency Write-Off Account/GLA Type field in the Select Journal Details window, which is displayed when one of the following conditions is met:

  • The selected cash entry and transaction accounts belong to the same cash matching account group
  • The Allow Different Matching GLAs field in the Cash Matching Settings custom setting is selected

When performing cash matching across multiple accounts and a single GLA, you can select either:

  • A cash entry account that relates to the account of the document line selected in the Cash Entry grid
  • A transaction account that which relates to the account of the document line selected in the Transactions grid

When performing cash matching across either a single or multiple accounts and multiple GLAs, you can select either:

  • A cash entry account or GLA that relates to the GLA of the document selected in the Cash Entry grid. When selecting multiple cash entry lines to match, they must use the same GLA. However, the transaction lines can use multiple GLAs.
  • Transaction account or GLA that relates to the GLA of the document selected in the Transactions grid. When selecting multiple transaction lines to match, they must use the same GLA. However, the cash entry lines can use multiple GLAs.

When you commit the match, the currency write-off is then recorded according to the currency write-off account/GLA type you selected.

Note:

Using different GLAs might not be suitable for all the matches that include values for currency write off, for example when the GLAs in the Cash Entries and Transactions grids are different. If the currency write-off across multiple GLAs cannot be recorded, we recommend using an auxiliary GLA instead. For more information, see Matching to a Specific GLA via Auxiliary GLA.

Intercompany Accounts

If the selected account is an intercompany account, and if there are discounts, write-offs or currency write-offs involved, Accounting will create a cash matching journal with its GLA control accounts retrieved from the related intercompany definition. If the appropriate intercompany definition does not exist or is incorrectly configured, you will receive an error message. The intercompany account can't be the one that represents the current companyClosed The company in which you are working. This is represented by the company queue to which you, and new instances of objects you create, are assigned..

Committing a Match

Undoing a Match

An Undo Match retrieves cash matching historyClosed History of all activities that take place during the payment, discounting, or writing off of a payable transaction line. records for the selected account. If a cash matching history record includes an undo matching reference, indicating that it has been unmatched before, it is not retrieved.

The original document reference and the matching date/reference are displayed to help you choose the relevant lines. You can select up to 1,000 transaction lines when undoing a match.

Committing an Undo Match

  • Creates a new "Undo" cash matching history record for each selected line.
  • Assigns a unique matching reference to each of these history records.
  • Adds an undo matching reference to each of the original cash matching history records to indicate that they have been undone.
  • Updates the other currency values for each of the new history records.
  • Updates the outstanding amounts in home, dual, account and document currency for each of the account transaction lines.
  • Updates the match status of each of the account transaction lines, as appropriate.
  • Creates a new cash matching journal which is the exact reverse of the journal created by the original match. The journal reverses out the original postings to the specified general ledger accounts.

Fully Matching an Invoice to a Credit Note

If you fully match a sales invoice to a sales credit note, or a payable invoice to a payable credit note, the Match Type field on the invoice's transaction header is set to "Credited" to indicate that the invoice has been fully credited. You can also view this "Credited" status on the invoice's detail page. If you later undo the match, the "Credited" status is cleared.

The Match Type column can be included in the Transaction list view so that you can easily pick out transactions that have been fully credited. It can also be included in an account's Cash Matching Histories list view.

Match Statuses

A transaction line item can be in one of the following match statuses:

Match Status Description
Available Line is available for matching.
Matched Line has been matched.
Not Matchable Line is unsuitable for matching. An example of this is the tax line from an invoice.
Proposed Line has been included in a payment proposal. It is not available for manual matching nor is it available for inclusion in subsequent payment proposals.

When the match status or outstanding value of a transaction account line is updated, the following related values are also updated:

  • The account line summary on the transaction.
  • The payment details on the related document.

Document Matching Scenarios

The following table lists a number of document matching scenarios and indicates which are currently supported in cash matching and background matching.

These scenarios apply to both sales documents and billing documents.

Document Matching Scenario

Supported By:

Cash Matching

Background Matching

Invoice - Credit Note Yes Yes - in Lightning
Invoice - Cash Refund

Invalid

The Commit button is disabled.

Invalid
Invoice - Cash Receipt Yes Yes
Credit Note - Cash Refund Yes Yes
Credit Note - Cash Receipt

Invalid

The Commit button is disabled.

Invalid
Cash Refund - Cash Receipt Yes Yes - in Lightning.
Invoice - Credit Note - Cash Receipt Yes

Yes - In Lightning.
Partially supported when running in Visualforce.
The Credit Note is ignored.

Invoice - Credit Note - Cash Refund Yes

Yes - In Lightning.
Partially supported when running in Visualforce.
The Invoice is ignored.

Invoice - Cash Receipt - Cash Refund Yes

Yes - In Lightning.
Partially supported when running in Visualforce.
The Cash Refund is ignored.

Credit Note - Cash Receipt - Cash Refund Yes

Yes - In Lightning.
Partially supported when running in Visualforce.
The Cash Receipt is ignored.

Invoice - Credit Note - Cash Receipt - Cash Refund Yes

Yes

In Visualforce, the Invoice is matched to the Cash Receipt.

In Visualforce, the Credit Note is matched to the Cash Refund.

Cash Matching Account Groups

A cash matching account group is a group of up to 100 unique accounts that facilitates multi-account matching. An account can belong to one cash matching account group only and you can create either third-party or intercompany accounting groups. For example, you can add two accounts to a cash matching account group and then match the cash entries of one account with the transactions that belong to the other account. Adding more accounts to a cash matching account group enables you to perform more complex matches across multiple accounts within the group.

For more information, seeAbout Cash Matching Account Groups.