Categorize Transactions

If you have enabled bank feeds for your bank account or if you import your bank statement to Zoho Books, you can match or categorize the bank transactions added to Zoho Books. You have to match or categorize these bank transactions to ensure that they match the transactions created in your Zoho Books organization. This will help you to reconcile your bank statements easily.

Categorize Transactions Manually

If the uncategorized transaction doesn’t have a matching transaction in your Zoho Books organization, or if you do not wish to select one from those that are listed, you can instantly create a transaction and associate it with the statement line. Here’s how:

Go to the Banking module in the left sidebar.
Click the bank account for which you want to view the dashboard.
On the page that appears, go to the Uncategorized Transactions tab.
For the uncategorized transactions that have the Recognized tag next to them, click Categorize next to them.
In the pane that appears, the details will be auto-populated based on the transaction rule. Verify the details and click Save.

For the uncategorized transactions that do not have the Recognized tag next to them, click Categorize next to them.
In the pane that appears, fill in the required details and click Save.

The transaction will be categorized and you can view it in the Categorized Transactions section. Here’s how:

Click the dropdown next to All Transactions and select Categorized.

You can view all the categorized transactions here.

Unmatch a Matched/Categorized Statement

To unmatch a transaction with a statement line,

Go to the All Transactions tab.
Select a transaction and click the Unmatch button.

The statement line reverts back to the Uncategorized state and the transaction to the Manually Added state.

To uncategorize a transaction,

Navigate to the All Transactions tab.
Select a transaction and click the Uncategorize button.

The statement line reverts back to having the Uncategorized label and the transaction will be deleted from Zoho Books.

Match Multiple Bank Statements

You can match multiple bank statements with one or more Zoho Books transactions at once. Here’s how:

Go to Banking and select a bank account with uncategorised transactions.
Click the Multi-select & Match toggle to enable multi matching of bank statements with Zoho Books transactions.
Click Select against the transactions you want to match.

The consolidated statement list will be displayed in a banner. In this banner you can:
- View all the statements or hide it by clicking Show All/Hide All.
- Unselect each transaction by clicking the Trash icon next to the transaction.
- Unselect all the selected transactions by clicking Clear Selection.

Once you have selected the statements you want to match, click the option Click here to re-fetch the matching transactions. A list of the best possible matches will be displayed.
Select the Zoho Books transactions that you want to match by clicking Select against the transactions.
Click Match.

Notes: If the bank statement amount doesn’t match the Zoho Books transaction amount, you can create a new transaction with the difference amount and match them.

You can also choose to categorize these bank transactions manually. Here’s how:

Select the bank transactions that you want to categorize.
Go to the Categorize Manually tab.
Enter the necessary details and click Match.