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Handling unmatched transactions and write-offs

Not every bank transaction has a matching invoice or bill waiting for it. Bank fees, interest, cash deposits, and processing charges are normal — they just need to be recorded properly so your reconciliation balances.

Creating entries for bank-only transactions

When you see a bank line with no match — like a $15 monthly service fee — you need to create a new journal entry:

  1. On the unmatched bank line in the reconciliation view, look for the option to create a new entry (sometimes labeled Create or shown as a manual entry tab).
  2. Fill in:
    • Account — the expense account this belongs to (e.g., "Bank Fees" for a service charge, "Interest Income" for interest earned)
    • Label — a description like "Monthly service fee" or "Wire transfer fee"
    • Amount — should match the bank line amount
  3. Click Validate.

CloudFFL OS creates a journal entry for the fee and reconciles the bank line in one step.

Common bank-only transactions

TransactionAccount to use
Monthly service feeBank Fees (expense)
Wire transfer feeBank Fees (expense)
NSF / returned check feeBank Fees (expense)
Interest earnedInterest Income (revenue)
Credit card processing feePayment Processing Fees (expense)
Cash deposit (not from a customer payment)Owner's Investment or appropriate equity account — ask your accountant

Write-offs for small differences

Sometimes a bank line is $0.03 or $0.10 off from the matching invoice. This happens with rounding on tax calculations or currency conversions. For these tiny differences:

  1. Match the bank line to the invoice or bill.
  2. CloudFFL OS shows the remaining difference.
  3. Use the write-off option to post the small difference to a "Rounding" or "Miscellaneous Expense" account.
  4. Click Validate.

Only write off genuinely small amounts. A $0.03 rounding difference is fine to write off. A $50 difference means something is actually wrong — investigate before writing it off. Check for partial payments, fees you didn't notice, or mismatched invoices.

Chargebacks and disputed payments

If a customer disputes a credit card charge, you'll see a debit on your bank statement for the chargeback amount. To handle this:

  1. Create a journal entry during reconciliation, posting the chargeback to an "Accounts Receivable" or "Chargeback" account.
  2. Follow up with your payment processor (NMI or Authorize.net) to dispute or accept the chargeback.
  3. If the chargeback is upheld, you may need to create a credit note on the original invoice.
  4. If the chargeback is reversed, another deposit will appear on a future statement — reconcile it against the chargeback entry.

Don't ignore chargebacks. Payment processors have strict deadlines for responding to disputes (usually 7-10 business days). If you see a chargeback on your bank statement, check your NMI or Authorize.net dashboard immediately for details and respond within the deadline.

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