What is an unmatched transaction?
Published
An unmatched transaction is a movement without a counterpart: a bank line with no entry, or an entry with no bank line. It is not an error in itself - it is an open question, and a reconciliation regime's worth lies in not letting the question age.
The four causes and their treatments
| Cause | Example | Treatment |
|---|---|---|
| Timing | An unpresented cheque; a deposit in transit | No entry - track until it appears, worry if it lingers |
| An unrecorded bank movement | Fees, a deduction, a direct customer transfer | Record now, with its document |
| An unidentified movement | A 465 transfer with no clear name | Query the bank/customers; park in suspense documented until identified |
| An error | A duplicated amount, an entry at the wrong figure | Correct by entry or claim from the bank - never a "settlement" that buries the gap |
The age rule
A suspended item is managed by its age: days are acceptable, weeks demand escalation, and an item crossing two month-ends unidentified signals a fault - either cash whose source you don't know (a compliance question) or cash that left unexplained (a control question). Suspense is a transit lounge, not a residence.
Frequently asked questions
A customer transfer with no reference - park it or guess the invoice?
Don't guess - a wrong allocation corrupts two customers' statements. Park it documented and ask; failing that, oldest-first after enquiries are exhausted.
The system suggests a match on an identical amount - approve automatically?
Amount equality is evidence, not proof - date and counterparty confirm. Blind approval of equal recurring amounts (identical subscriptions, say) shuffles months.