How to Use Bank Transactions to Pay Existing Records

The Bank Reconciliation module in Tyms is a powerful tool that allows you to import bank statements and reconcile them with transactions in your accounting records. This ensures accuracy between your bank balance and your books while simplifying payment matching and transaction posting.

You can use the Bank Reconciliation module in three main ways:

1. Make Payments Using Bank Statements

   Use bank statement transactions to make payments for: Invoices, Bills, Asset payments or Asset disposals. This applies to transactions that have already been recorded in your books but do not yet have payments applied.

2. Merge Bank Statements with Existing Payments

   Merge imported bank statement transactions with payments that already exist in your books to complete reconciliation.

3. Create New Records from Bank Statements

   Use bank statement transactions to create new records in Tyms by categorizing them into the appropriate destination, such as expenses, receipts, or journal entries.

Transactions Table Overview

All categorization and reconciliation actions are performed in the Transactions Table, which includes the following columns:

Transaction Details

• Date: The date the transaction occurred.

• Narration: The description or reference for the transaction.

• Type: Indicates whether the transaction is an Inflow (Credit) or Outflow (Debit).

• Amount: The value of the transaction.

• Balance: The bank balance after the transaction.
  

Categorization Details

• Categorization Status
  Indicates the processing status of the transaction:
  Uncategorized: Not yet processed or posted.

  Recognized: Identified by bank rules and assigned a chart of account, pending approval.

  Categorized: Approved and successfully posted.

• Destination: Shows where the transaction has been posted, such as: Invoice, Receipt, Expense or Bill payment, Journal entry, Asset payment.

• Account: The specific sub-account or destination group, for example: Selling expenses, General and administrative expenses.

• Account Type: The main account category, such as: Expenses, Bank, Revenue, Fixed assets

• Approved: Indicates whether the transaction has been approved (Yes or No)

Using a Bank Statement to Make Payments (Bills, Invoices, or Asset Payments)

Follow these steps to use a bank statement transaction to make a payment:

Step 1: Access Bank Reconciliation

• Navigate to the Bank Reconciliation module.

• Select and preview the relevant bank account.

Step 2: Select a Transaction

• Locate a transaction with the status Uncategorized.

• Click the three-dot menu under the Action column.

• Click Categorize.

Step 3: Choose a Destination

A destination dropdown will appear based on the transaction flow:

Outflow (Debit):

• Make a bill payment

• Make an expense payment

• Make an asset payment

Inflow (Credit):

• Make an invoice payment

• Make an asset disposal payment

Select the appropriate destination for the transaction.

Step 4: Match the Transaction to a Record

1. Based on the destination selected, a related dropdown will appear: Sales payment dropdown (for invoice payments), Expense or bills payment dropdown, Assets payment dropdown

2. Tyms will display records that match the transaction amount and date.
   Important:

   The bank statement date must be the same as or later than the date of the record you are applying payment to.
   
   Example:

   If a bill was created on 29th January 2025, the bank statement used to pay that bill must be dated 29th January 2025 or later.

3. Select the matching record from the dropdown.

Step 5: Save and Complete

• Click Save to complete the categorization.

• Navigate back to the relevant module (Expenses, Bills, Sales, or Assets).

• The transaction status will now be updated to Paid.