Introduction

Bank Processing allows you to either add files by Manual Import or by a Bank link using Open Banking, Salt Edge, or Plaid.

Please Note

• Banking links section will not appear if 2FA (2 Factor Authentication) is not used
• Some Banks hold transactions in pending before releasing payments, this can be up to 24hrs sometimes longer with Foreign Currency. Please check your Bank Statements to see if charges are included.

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Setup Required

• Add to Menu – Class 1 only (Menu Maintenance – Cash Management privilege) 
• Add in the input VAT account for the Bank (Purchase Input) (System, Bank Accounts)
• Add in the Bank Charges Nominal (System, Bank Accounts)
• Inclusive Bank Charges in Foreign Currency on receipts and payments will be in a future release
• Enable the batch in Company Data Maintenance > Nominal > Account Details > Cash Management Batches > Enabled
• Check the Status on the Batch to ensure you have a status for Bank. You can have multiple Statuses. Examples could be Draft, Approved, Cancelled (for Cancelled, mark as complete as this will allow you to cancel transactions batched in error
• Personnel Maintenance – when batching is switched on enable the user to be Staff 1 & 2 in Draft Transaction Batch on the Staff Code tickboxes
• PCSH and SCSH Auto Numbers – We recommend that all Auto Number options are ticked in Sales Credit Transaction Details, Sales Debit Transaction Details, Purchase Credit Transaction Details and Purchase Debit Transaction Details. This will ensure you do not get Reference Required Errors
• Add to Menu – Transaction Import Browser and Transaction Batch Browser
• Add to Menu – Class 1 only (Menu Maintenance – Bank privileges) 

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Using Bank Processing

Manual Import

• Access Cash Management from the Context Menu
• Select the  icon to open the Context Menu, then select Get Bank Transactions

• Import the Statement (CSV/XLSX/OFX/QFX)

• From the Import Statement window navigate to and select your file.

Download the Bank Statement from your Online Banking. Speak to your Customer Relations Manager at the Bank if you need help with this

Alternatively, you can create your own statement file (below is an example of a template you can use)

When you import the statement, you will be given different options to format the file, please select if your file is Comma Separated or Tab Delimited and also if it has Headings. Select what applies to your individual file.

The CSV mapping window allows you to format the file from your Bank to import into the system.

The mapping will depend on the file, if you use the example template above your mapping will look like this, the system will remember the last selected lines, so if you use the same import each time you will not have to redo this. Use the drop-downs to identify the details you wish to import.

Some Banks will only include one column, if you are importing a Credit Card Statement please check if the export has inverted figures

Credit Cards – If your import includes Credit Card Numbers, when you press import in the Bank Processing window you will not see the transactions appear, this is because you can not process them in Bank Feeds, they will go straight to the Credit Card Claim, you can view them in the Transaction Import Browser, or on the Credit Card Claim

For Example, with Credit Cards your Statement could have positive figures (many Credit Cards send Statements with your Costs as positives ), you will need to amend them in Excel to change them to Costs before you import. When you import a Credit Card Statement the Costs should show as a negative e.g (100.00) would mean you had spent £100 on the Credit Card. Please ensure figures are entered as negative to avoid issues.

Selecting Amount (as is) means you are only importing one column for amounts in and out. Costs for the Bank like a Credit Card import should be negative for the purpose of the import

Bank Link

To set up the Bank link, Click Add. This will take you to your Banks authentication process. (also see Salt Edge, Plaid

Please Note currently the Bank Links are only available to our Hosting Clients, please contact Customer Care if you wish to discuss this.

Once you have enabled the authentication from your bank you will be returned to the Bank Setup window and will now see the word remove, click this if you want to unlink your bank.

The below link is for the open banking downtime page, most banks post here however some prefer to use their own web-site to list downtime

https://openbanking.atlassian.net/wiki/spaces/DZ/pages/441614754/API+Downtime

Each banks opening bank link works differently, so we have only added links to the banks we know our clients use, if your bank isn’t listed please contact us and we will check if open banking is possible.

After a link has been established with your bank and new icon will appear on the left . Clicking on this icon opens the Import Using Open Banking window.

Select the date range to download

Please Note You may receive a similar message to the one below (Failed to obtain account transactions – Status 401) if your banks authorisation to communicate with Paprika has Expired. To fix this problem, go to System Maintenance > Bank Accounts and locate the Bank Account in question. Unlink the Bank Account and then reauthorise the account. The error will then be cleared.

Batches and Recalling Bank Transactions

The Notepad button will show you two different options

Bank Transactions shows automatic batches that have been created (this could be from polling transactions using Open Banking/Salt Edge, or it could be if your window has been closed before you started processing your bank transactions, e.g you lost connection but didn’t process your transactions, this will enable you to recall to process rather than having to download again)

Draft Batches shows those you have saved manually or are holding until you can process.

Once you transfer transactions from the banking batch or process them, this will then disappear from the bank transaction picker list, this is because you have now edited the information, so it is no longer tagged with the banking batch numbers. Ensure you save your batches as you go along to ensure you do not lose your transactions.

Duplicates

If you are importing a file you have already loaded into the system a message will appear about duplicates. A duplicate means that the file is recognised, this is different to a transaction being on a batch. A duplicate means there is a Transaction Import (TI) file on the system already. You are able to delete any duplicated TI records from the TI browser.

• TI: Transaction Import (this is not a batch line or a process line, it is a draft used to measure when users have manually uploaded OFX/QIF files)
• Batch: Theses are waiting to be processed, they do not make postings
• Posted: These are Posted transactions which make nominal postings to the ledgers

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Suggested Process

• Import statement/select Date Range on Bank Link
• Save as batch (Approved)
• Working through the batch, move those that are unsure to Draft
• Process Approved (select Save)
• Recall Draft batch before starting the next, to reconcile/match any outstanding

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Bank Processing Transactions

When transactions are imported through Open Banking or Manually through an import file Paprika will find matching records.

On the left are the Bank Lines, and on the right are the matches from Paprika.

The Total marked in orange is the Amount that will be Posted, so this shows the Total that will match the Nominal Transactions – any that match previously posted cash are subtracted from the Total as they have already been posted. In the example above £300.00 into the Bank matched to a previously posted cash line that was a Normal Journal Bank/P&L. The Total in blue is the total of the Import/Feed.

Menu Options

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Process Symbols

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 Red indicates that the record cannot be saved. Hovering over the icon will explain the missing information

 Yellow indicates that the record needs user input to resolve

 Selecting this button confirms and gives the line a green tick and hides the line from the current window although they can be seen again by selecting Show Confirmed near the top left of the window

 When all lines are green ticked the batch can be saved. Save (give a batch number using ) or Post to make the postings

Pause: will grey the transaction and move it out of that batch, (when Pause is selected the button turns into a Play button) Play will undo the Pause and re-include it in the batch

Pencil: enables you to edit the line detail (VAT Codes, Analysis etc.

Clipboard: opens the Rule window

Refresh: reruns the rules on that line to re-find a link

Matching and Creating

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Transactions can be matched to an existing cash record, which will make no nominal posting but will reconcile the transaction only. It is advised that if the VAT payment is being made to HMRC direct from the VAT & system nominal that this is processed manually in Cash Management, then the match will be found when Bank Processing imports it

Matches can also match to an existing Sales/Purchase/Transaction and create the cash posting for this, they can also match to a Client, Supplier or Nominal to post cash on account

If no matches are found you can create and match using the magnifying glass to do this, you can also use the create to find a posted Sales/Purchase/Transaction.

If the Match has a high enough score then the transaction will be ticked for you. The score threshold is indicated by the user, the default is 0.70

How do Matches Work?

Threshold

Points are awarded to make up a score which will indicate if the match reaches the threshold. Each Rule has a points allocation which can increase the award. Some points are awarded and then will decrease, for example, the further away the dates are in from the posting date, this will decrease using a linear method. If the bank record matches multiple rules then this will give a multi-factoring result and add the points to create the overall score for the threshold

Users can specify a factor to apply to matches from another entity. If mixed entity postings are blocked, it is set to 0 so no matches will be shown for another entity. Otherwise, the score will be multiplied by the factor for matches from different entities. So for example, a Client score from the same entity is 0.70 then client score from different entity will be 0.35. If set to 100, all entities will have the same score.

Click on the score to see what rule has been applied to this match.

Rules

To find Rules you can click on the score on the line (), the Clipboard in the red bar  or the Clipboard on each line . Use the magnifying glass  next to the Rule Name box to see the current rules. Default rules are in each datafile and across all banks, user-defined rules are per bank

There are two windows on Rules creation

1. Simple

Rule Name: is the name of the rule

Direction: is the amount incoming to the bank or outgoing

Match Types: those selectable here are linked to the direction

Record to Match: will give the required selection based on the Match Type

Description Contains: the name you are looking for the match to find (this is the fourth column on most of the bank exports)

Transaction Type: code from the bank e.g DD, CR, DR these are bank provided

Account: is the Payee or Payer (this is the third column on most of the bank exports)

Days before/after: between and inclusive of the day

Amount Match Type: what options are selected when amounts are the rule base

Amount Scale: links with the option selected on type

Create: Creates your rule

2. Switch to Advanced Mode

Value to Match: value that we look for in the field specified in Field to Match. e.g. if we select Client Shortname as the Field to Match, and Tesco as the Value to match, then both Tesco Supermarket and Tesco Petrol Station would be matched

Fuzzy Match: using the text to search within a string where it finds a match which is close to matching, can help with spelling errors or shorter names

Regular Expression: a sequence of characters that specifies a search pattern. This is auto-filled by your selections. The autonumber picker is the magnifying glass next to the Regular Expression box. It opens a picker for all the autonumbers on the system and will create a regular expression of it and put that into the regular expression field

Date Factor: Options for reducing scores based on dates

Base Probability: the score given when the rule matches

Auto-adjust probability: when ticked, the base probability will get adjusted up or down automatically based on how often the rule gets it right (e.g. if the user selects an item returned by that rule) or wrong (e.g. the rule returned this item pre-selected and the user deselected it). So over time, a rule that is confirmed as being correct a lot will have its probability raised so it will match even more often, and rules that continually get it wrong will have their probability reduced so that they are selected less often

Default Rules

These are indicated with the world icon. The Default rules are those programmed to be the most likely to find matches. Users can add their own rules depending on how the bank/payees display information. Default rules include;

• Sales Invoice: SDR (Invoice)- Find any sales invoices with a balance matching the bank amount, regardless of date and client
• Sales Credit Note -SCR (Credit Note): Find any sales credit notes with a balance matching the bank amount, regardless of date and client
• Sales Cash Receipt – SCR (Cash): Find any sales cash receipts with a gross amount matching the bank amount and date within 30 days of the bank line date, regardless of the client. Decrease the probability by (0.5 / 30) for each day difference
• Sales Refund – SDR (Refund): Find any sales refunds with a gross amount matching the bank amount and date within 30 days of the bank line date, regardless of the client. Decrease the probability by (0.5 / 30) for each day difference
• Purchase Invoice – PCR (Invoice): Find any purchase invoices with a balance matching the bank amount, regardless of date and supplier
• Purchase Credit Note – PDR (Credit Note): Find any purchase credit notes with a balance matching the bank amount, regardless of date and supplier
• Purchase Payment – PDR (Cash): Find any purchase payments with a gross amount matching the bank amount and date within 30 days of the bank line date, regardless of the client. Decrease the probability by (0.5 / 30) for each day difference
• Purchase Refund – PCR (Refund): Find any purchase refunds with a gross amount matching the bank amount and date within 30 days of the bank line date, regardless of the client. Decrease the probability by (0.5 / 30) for each day difference
• Nominal Journal – NT (Journal): Find any existing nominal journals (NTs that are marked as nominal journals) for this bank account where the amount matches exactly and the date is within 30 days of the bank line
• Nominal Journal Format – NFT (Journal Format): Find any journal formats where the nominal account is for this bank and the amount matches exactly
• Payment Run – DTB (Payment Run Batch): Find any processed payment runs (status = PROC) where the total amount of the run (sum of all the DTH_AMOUNTS) exactly matches the bank line, and the payment run date is within 30 days of the bank line. Decrease the probability by (2.0 / 30) for each day difference
• Payee Rule – PA (Supplier): Find any suppliers with a Payee (PA_CHEQUE_NAME) containing the payee specified on the bank line
• Supplier Rule – PA (Supplier): Find any suppliers with a Shortname containing the payee specified on the bank line
• Supplier Name Rule – PA (Supplier): Find any suppliers with a Company Name containing the payee specified on the bank line
• Client Rule – SA (Client): Find any clients with a Shortname containing the payer specified on the bank line
• Client Name Rule – SA (Client): Find any clients with a Company Name containing the payer specified on the bank line
• Nominal Account Rule – NA (Nominal Account): Find the nominal account(s) which has a description containing the entire contents of the bank line description
• Sales Invoice Number – SDR (Invoice): Find the sales invoice with the invoice number (SDR_REF1) matching the one anywhere in the bank line description, regardless of date and amount. Reduce the probability by how far the amounts differ
• Job Number – SDR (Invoice): Find any sales invoices with a job number in the narrative (SDR_NARRATIVE) that was found in the bank line description and a balance matching the bank line amount, regardless of date
• Payment Reference – PDR (Cash): Find the purchase payment with the payment reference (PDR_OUR_REF) matching the one anywhere in the bank line description, (if you do not have PDR Our Ref set to AutoNumber you will need to switch probability to 0), regardless of date and amount. Reduce the probability by how far the amounts differ
• Payee in Description – PA (Supplier): Build a list of every supplier’s payee details (PA_CHEQUE_NAME) and see if any of them appear in the bank line description. If so, use the match to find the respective supplier(s)
• Supplier Bank Name in Description – PA (Supplier): Build a list of every supplier’s bank account name (PA_BANK_ACC_NAME) and see if any of them appear in the bank line description. If so, use the match to find the respective supplier(s)
• Client Bank Name in Description – SA (Client): Build a list of every client’s bank account name (SA_BANK_ACC_NAME) and see if any of them appear in the bank line description. If so, use the match to find the respective supplier(s)
• First ten characters of Supplier Name – PA (Supplier): Find any suppliers with a company name containing the first ten characters of the bank line description
• First ten characters of Client Name – SA (Client): Find any clients with a company name containing the first ten characters of the bank line description
• First ten characters of Supplier Shortname – PA (Supplier): Find any suppliers with a shortname containing the first ten characters of the bank line description
• First ten characters of Client Shortname – SA (Client): Find any clients with a shortname containing the first ten characters of the bank line description

User Defined Rules

Users can create their own rules to improve the usability of the matching process.

The Rule needs to be given a name. Then the query defined.

Amount Related Rules
These work by using the drop-down selection and the amount field to create a query Exact: must be the exact amount matching the invoice/journal amount

Fixed: a fixed amount above/below the Exact amount of the invoice/journal, the amount is put into the amount scale box

Percent: a fixed % above/below the Exact amount of the invoice/journal, the percentage is put into the amount scale box

Scale: This does not affect the record matching amount, it only affects the score the match is given, depending on how different the matching record amount is from the bank amount, it will scale it down/up

Ignore: the amount is ignored

Date Related Rules
These are used for rules on dates between the bank recorded transaction and the matched transaction

These scale up/down depending on how close of a match to the date on the bank the transaction is. 0 in the date will want a perfect date match before scaling starts, numbers will look for those matches within the set days, example below would be this invoice is always 5 days before/after in the bank record

Ignore: ignores the date

Linear: reduces the score based on a linear reduction

Curved: reduced the score based on a curved reduction (for example percentages reducing down)

Flat: does not adjust the probability, uses the date to match/not match

Example Rule

For example the above rule Client Bank Name in Description this rule can be either outgoing or incoming transactions, the type of match is on the Client record, the Description from the bank will be Exact when these parameters are completed the record will match. Clicking advanced mode will show you the score given to this match.

The Base probably is the starting point, as the bank feed is used you can tick the auto adjust so that the base probability adjusts in line with the matches that you agree and process.

User Defined Rule – Example
Type in the name of your rule

Select the parameters to match, this example shows that when the description from the bank contains the words ‘Overdraft Fees’ the match will be made on a nominal account that I have selected.