Help Center Payment And Banking Categorizing bank transactions on Tyms
Categorizing bank transactions on Tyms is a powerful component of the TBankSync feature, which enables you to efficiently organize and track your financial data. This feature aims to help businesses like yours connect bank transactions to the associated accounts, ultimately generating accurate financial reports.
With categorization, you can classify transactions into specific chart of accounts or destinations, such as payment of invoices, purchase of assets, payment to vendors, among others.
Ultimately, categorizing bank transactions means posting bank transactions to the expected destinations from the bank module.
This categorization enables you to generate detailed reports, providing valuable insights into your financial health and empowering informed decision-making.
This section would involve three major segments:
1. Categorizing individual transactions.
2. Categorizing transactions in bulk.
3. Approval of recognized transactions.
The transactions table, where categorizations are performed, contains the following columns:
1. Date: The date of the transaction.
2. Narration: A description or narration of the transaction.
3. Type: The transaction type, either inflow (Credit) or outflow (Debit).
4. Amount: The transaction amount.
5. Balance: The updated balance after the transaction.
6. Categorization: The status of the transaction's categorization, which can be:
a. Uncategorized: Not processed or posted yet.
b. Recognized: Processed by a bank rule, or having a category suggested via AI-statement import and assigned a chart of account, pending approval to be posted.
c. Categorized: Successfully posted and categorized.
7. Destination: The category where the transaction has been posted or categorized, such as: Invoice payment, receipt, expense or bill payment, journal entry, asset payment.
8. Account: The specific sub-account or destination group a transaction falls under. Examples include: Selling, general, and administrative expenses, journal, furniture and fittings.
9. Account Type: The main account head or category a transaction falls under. Examples: Expenses, bank, revenue, fixed assets.
10. Approved: The approval status of the transaction, indicating whether it has been approved and categorized - yes or no.
To categorize individual transactions on Tyms, follow these steps for each transaction:
1. Navigate to the TBankSync module, and preview a bank.
2. Click on the three dotted lines under the action header on the transactions table.
4. A dropdown of destinations would be open to you depending on the flow of the transaction (out or in), and you can select the expected destination for the transaction from the dropdown list.
5. Click the account dropdown to select the second leg account for the transaction to be categorized under. This will take effect across all the financial statements when posted.
6. Select the branch which this would be effected in, and check the box to show other categorization options such as the contact, department, and associated project.
7. Click on the “Save” button and the status of the transaction will be displayed as categorized.
8. Repeat this process for each transaction you want to categorize.
Categorizing transactions in bulk
Tyms accounting software allows you to post multiple transactions with the same destination in one go, streamlining the process and saving valuable time. These transactions are automatically categorized into journal entries, eliminating the need for individual categorization and reducing stress. With this efficient feature, you can manage your finances with ease and precision.
To categorize bulk transactions on Tyms, follow these steps for each transaction:
1. Navigate to the transactions table, and click on the checkbox by the left hand side of the transactions you want to bulk post.
Note: The transactions must be of the same flow (all inflow or outflow), and either uncategorized or recognized. If otherwise, the bulk post option will not be available for action.
2. Click on the “Bulk post” button to bulk categorize.
3. Select the account from the dropdown which would act as the second side entry for the transactions.
4. Save the selected, and the categorizations can be viewed on the journal entries page.
Approval of recognized transactions
As earlier stated, recognized transactions are transactions processed by a bank rule, or having a category suggested via AI-statement import and assigned a chart of account, pending approval to be posted.
To approve recognized transactions on Tyms, follow these steps for each transaction:
1. Select a transaction, and click on the action button.
2. Select “approve”, and the account recognized within the transaction will be categorized.
For approval of multiple transactions, check the box at the left hand side of the screen, and click on “bulk approve”.
Note: All selected transactions must be with status “recognized” for the option to be available.
Deleting categorized bank transactions
There are two various methods of deleting bank transactions within the Tyms accounting software:
1. Partial Delete: Deletes a transaction from the transactions table on the bank page only. If the transaction has already been categorized, the categorization will remain intact and the associated account or destination will not be affected.
2. Full Delete: Deletes a transaction from the transactions table and reverses its categorization, removing it from the associated account or destination. This option completely removes the transaction from the system.
These options are located under the action button beside any of the transactions you want to delete.
Table filters
The filters on the bank transaction table also allows for the display of certain transactions based on what has been selected.
The available type of filters include:
Flows: This includes inflow and outflow.
Statuses: This includes recognized, categorized, and uncategorized.
Time: This includes periods, allowing display of transactions that fall into certain periods.
Columns: This allows users to check the various columns to be displayed, uncheck to hide others on the transactions table.
By selecting specific filter options, you can tailor the transactions table to show only the data that matters most to you, streamlining your accounting workflow.
Analytics
As seen in the image above, the following analytics exist on the TBankSync:
Categorization Analytics
This section provides insights into transaction categorization:
1. Uncategorized transactions: Total value of transactions without assigned categories.
2. Recognized transactions: Total value of transactions processed by bank rules or AI-statement processor and assigned chart of accounts.
3. Categorized transactions: Total value of transactions successfully posted and categorized.
Reconciliation Analytics
This section facilitates reconciliation by displaying:
1. Bank balance: The latest balance reported by the bank.
2. Book balance: The balance recorded in your financial records, linked to the bank through Sales, Expenses, Assets, or Journals. Can be negative if the outflows outweigh the inflows.
3. Difference: The variance between the bank and book balances, highlighting any discrepancies for reconciliation purposes.
Functions
For categorization on the bank module, the following functions can be performed:
1. Assignment of categories to transactions
2. Recategorization of already categorized transactions
3. Approval of recognized transactions
4. Bulk categorization
5. Bulk approval
6. Filters
7. Partial delete
8. Full delete
FAQs
1. Can I categorize transactions in bulk?
Yes, use the bulk categorization option to categorize multiple transactions at once.
2. How do I reconcile my bank statement in Tyms?
Select the transaction, and use the merge option to match your bank statement with your transactions from your books on Tyms.
3. Can I export my transactions for further analysis?
Yes, export your transactions from the bank ledger to an excel file for further analysis or reporting.
4. Does my data automatically get captured in the financial statements?
Yes, it does. The data moves when categorized to the selected account, ledger, and ultimately the financial statements.
5. How do I manage multiple bank accounts in Tyms?
Create separate banks on Tyms for each of your bank accounts.
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