When you download transactions from your financial institution, and select the Show Register checkbox while viewing a QuickStatement (a list of transactions that have taken place since your last download, and any transactions not matched from previous downloads), QuickBooks tries to match transactions from the statement with those in your register. The matching process consists of several stages:
Before the matching process:
Prior to beginning the matching process, QuickBooks identifies all register transactions dated more than 90 days prior to the system date of the computer on which QuickBooks is installed, or more than 60 days prior to the earliest date of all the downloaded transactions. These identified register transactions will not be considered for matching. Transactions that have already been reconciled are also discarded from matching consideration.
Primary matching process:
The downloaded transaction amount is compared to the amount of the first remaining register transaction ("remaining" refers to those items left after the criteria applied in "Before the matching process"). If the amounts are not identical, the pair does not constitute a match, and the next register transaction is compared to the downloaded transaction.
If the transaction amounts match, the check numbers are compared. If these numbers also match, the transaction is marked as matched. If the check numbers do not match, the next register transaction is compared:
Only check numbers with numerals are considered as final match candidates in the primary matching process. If the check number in the register contains letters and the downloaded transaction has no check number, the pair is considered a possible match and it moves to the secondary matching process (see below).
If the downloaded transaction is from a financial institution using the OFX protocol (one of the online banking protocols QuickBooks uses) and does not contain a check number, and the register transaction is an with a check number, the pair is considered a possible match and it moves to the secondary matching process (see below).
If there is no check number for either transaction, the pair is considered a possible match and it moves to the secondary matching process.
Secondary matching process:
Next, the dates of the two transactions that are considered a possible match are compared. If the register transaction is dated more than 30 days prior to the downloaded transaction, no match is made. The process returns to primary matching and compares the downloaded transaction with the next register transaction.
If the dates match, the payees of the two transactions are compared. QuickBooks takes both transactions and removes any numbers, the following special characters:
! @ # $ % ^ ( ) / \
the period character, and the space character, as well as any characters following the numbers or special characters. For example, Chevron Oil #456 Newark becomes ChevronOil. Only as many characters as are left in the modified register payee name are compared with the downloaded payee. Therefore, a register payee of ChevronOil (10 characters) will match a downloaded payee of ChevronOilStation, because the latter's first 10 characters match ChevronOil. If the payees match, then the transaction is considered a match. If they do not match, the process proceeds to the supplementary matching process.
Supplementary matching process:
QuickBooks compares the register transaction examined during the secondary matching process against each unmatched transaction in the QuickStatement. If it finds a better pair than was found during the secondary matching process, then it uses the new match instead. Otherwise, QuickBooks creates a match between the current register transaction and the downloaded transaction compared during the secondary matching process.3. I cannot match two transactions to one downloaded transaction.
This is where your Undeposited Funds account comes in handy.
1. You would want to receive payment in QuickBooks to your Undeposited Funds account.
2. Then, when you receive your bank statement, make your deposit in QuickBooks.
3. When you make your deposit in QuickBooks, select the payments that match to your statement.
4. Now when you reconcile, or use Online Banking, your deposits will match up exactly.