Bank Statement Reconciliation & Automated Matching

Keeping company bank balances aligned with accounting records is essential for cash visibility and fraud prevention. BIZA's bank reconciliation workspace imports digital statements, matches transactions against open invoices and payments, and posts adjusting bank fees in one streamlined workflow.

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1. Statement Ingestion

BIZA supports multiple statement formats from leading regional banks (Al Rajhi, SNB, Riyad Bank, ENBD, FAB, HDFC, SBI):

• Electronic Bank Feeds / File Imports: Support for standard CSV, Excel, OFX, QIF, and CAMT.053 XML files.
• PDF Statement Ingestion: Upload scanned or digital PDF bank statements directly; BIZA's document engine extracts transaction dates, reference descriptions, withdrawal/deposit amounts, and running balances into a structured feed.

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2. Reconciliation Workspace

The dedicated workspace (/accounting/bank-reconciliation) provides an interactive comparison view:

• Left Column: Bank statement lines extracted from the uploaded statement.
• Right Column: Internal General Ledger bank transactions (unreconciled customer receipts, supplier payments, transfers).
• Running Difference Tile: Displays Statement Balance vs. Cleared Ledger Balance vs. Unreconciled Difference.

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3. Matching Engine & Rules

BIZA simplifies matching using deterministic heuristics:

1. Exact Reference Matching: Matches bank reference IDs, cheque numbers, or transfer descriptions against customer invoices or payment records.
2. Amount & Date Window Matching: Identifies candidate transactions matching the exact currency amount within a configurable date tolerance (e.g. ±3 days).
3. One-Click Split Matching: Reconcile a single lump-sum bank deposit against multiple individual customer invoices (batch payments).

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4. In-Workspace Instant Adjustments (`CreateAdjustmentDialog`)

During reconciliation, bank statements frequently contain items that do not originate as pre-existing vouchers in the ERP—such as monthly maintenance fees, merchant acquiring discount rates (MDR), wire transfer fees, interest income, or direct debit utilities:

• One-Click Adjustment Journal: Clicking Create Adjustment opens an inline modal pre-filled with the statement transaction's date, description, and currency amount.
• Automatic Direction Detection:
  • Negative statement amounts (money out of bank): Pre-configures a credit to the Bank Account and prompts for the corresponding expense account (e.g., 6010 — Bank Charges & Commission).
  • Positive statement amounts (money into bank): Pre-configures a debit to the Bank Account and prompts for the income account (e.g., 4800 — Finance & Interest Income).
• Tax Handling for VAT Recovery: Automatically applies statutory 15% VAT on bank service charges, booking input VAT to 1150 — Input Tax Recoverable so your business claims full tax credits.
• Traceable Linkage: The generated draft journal entry is directly linked to the specific bank statement line ID for end-to-end audit traceability before posting.

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5. Multi-Currency Bank Accounts & FX Variance

For businesses holding foreign currency accounts (e.g., USD, EUR, AED, GBP):

• Currency-Specific Reconciliations: Reconcile foreign bank statements in the account's native denomination.
• Exchange Rate Realization: When matching a foreign currency payment against an invoice booked at historical rates, BIZA calculates and posts realized foreign exchange gain/loss adjustments automatically.

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6. Reconciliation Sign-Off & Permanent Audit Record

Once all statement lines are matched or adjusted and the unreconciled difference reaches SAR 0.00:

• Lock Statement Period: The statement is officially signed off and locked as Reconciled. All linked general ledger vouchers are tagged as cleared, preventing duplicate matching in subsequent periods.
• Comprehensive Audit Trail: The system preserves the original uploaded bank statement file, the reconciliation completion timestamp, the approving accountant's identity, and an unalterable summary report.