Let’s start our article about the “Set and Use Banking Rules for Downloaded Transactions in QuickBooks“. You need to categorize transactions when you import transactions from your bank so they go through the right accounts.
Bank rules are speeding up this review process. You can create rules that categorize transactions automatically to you.
What are the Banking Rules in QuickBooks
QuickBooks has an additional feature named Bank rules. This saves your time by setting up the automated categorization of repeated daily transactions even if they vary slightly each month. It also enables you to configure several variables of bank feed data in order to highly automate bank transactions that you accept in accounting software.
The more you use the bank rules in QuickBooks, the better it gets at categorizing. It can also check transactions after a while, and additional information such as payees. When QuickBooks is aware of the ways how to categorize a transaction then it uses a default account in order to temporarily hold it. Those accounts are revenue uncategorized, cost uncategorized, and asset uncategorized.
Note: You cannot use those accounts to create rules for banks.
Steps to Import Existing Bank Rules:
If you set up banking rules on another QuickBooks Online company file, you can export them to another company file:
- The very first, sign up for the company file where you want to export the bank rules from
- Next, select the Transaction or Banking menu and then select the Rules tab
- After that, select the New Rule using the drop-down and then Export Rules
- Save the export file in Excel
- Now sign out the company file and sign in to the one you want to import the rules into
- Then go to the Transaction or Banking menu
- After that select the Rules option
- Select the New rule from the drop-down and then Import Rules
- Select Browse and details that you want to import
- Perform the procedure that helps you to finish the import.
Steps to Set and Use Banking Rules for Downloaded Transactions
Step 1: Create a bank rule
- Initially, go to the Transaction menu or Banking menu
- Next, click on the Rules tab and then select New rule
- Now type a name in the rule field
- With the help of the drop-down menu, select the option “Money in” or “Money Out” as per your requirement
- Set the Bank rule conditions as desired
- Choose the transaction as per the choice but that should meet the conditions of “Any” or “All”
- Now add up to five conditions
- Identify whether the rule applies to Description, Bank text, or Amount
- Then select contains, doesn’t contain, or is exactly to decide when and how QuickBooks applies the rules
- Now, select the rule settings
- After that, select the Transaction type, Categories, and Payee to apply
- At last, hit the Save option.
Step 2: Review recognized transactions
- Whenever QuickBooks uses one of your rules, these transactions will be placed in the Recognized portion of the To Review tab
- A “Rule” label is also applied to the transaction.
- If all looks fine, select Add to transfer the transactions directly into a QuickBooks account.
- You can also select it and check it before moving it.
Step 3: Consider the auto-add feature
Targeted rules can be created such that unique transactions are automatically accepted from the Banking page into your accounts.
To turn this option on:
- Perform the above steps to create a new bank rule
- Next, select the option named “Automatically add to my books” on the rules window
- Finally, select the save button.
Once you create a rule for an auto-add, you’ll automatically add any transactions that must match the conditions for the Review page. Auto-add rules run when logging in, uploading a file, or creating or modifying a new self-add rule. In most cases, a message indicates how many transactions were inserted automatically.
So, QuickBooks has an additional feature called bank rules that helps you to save time in order to do automated categorization of various repeated transactions. This blog provides you with easy steps for how to set and use banking rules for downloaded transactions.