Understanding Customer reconciliation match sequences

Match sequences are alpha sequences used in the Customer reconciliation report to show the relationship between invoices and the credits or payments applied to them.

Sage Intacct assigns a match sequence to an invoice when you apply a payment or a credit against it. All payment entries that relate to the invoice use the same sequence, establishing a relationship between them. As long as the invoice is in a partially paid state, match sequences display in lower case letters, indicating that the invoice is not completely reconciled. Once the invoice is paid in full, the match sequences are changed to upper case letters.

In the case of a credit, such as an adjustment or an advance, a match sequence is assigned to the credit when it is applied to a transaction. You can track how the credit is matched to transactions by looking at credit's balancing entries, also called contra entries. The credit entry and the credit balancing entries share the same match sequence. This sequence displays in lower case letters until the credit is fully applied.

The detailed examples that follow provide a more in-depth view of how match sequences appear in different scenarios.

Say you recorded three invoices for a customer, in the amounts 100, 500, and 1000. Before you record any payment against the invoices, they display in the Customer reconciliation report as follows.

Match sequence example for new transactions
  Document Txn Type Txn amount Match sequence Charges Payments Balance
1 410 Invoice 100.00   100.00   100.00
2 526 Invoice 500.00   500.00   600.00
4 557 Invoice 1000.00   1000.00   1600.00
9   Totals     1600.00 0.00 1600.00

Sage Intacct has not assigned a match sequence to any of these transactions because you have not yet applied a payment or a credit against them.

After you record a full payment received against invoice 410 and a partial payment received against invoice 526, your Customer reconciliation report shows as follows.

Match sequence example for a fully, partially, and unpaid transaction
  Document Txn Type Txn amount Match sequence Charges Payments Balance
1 410 Invoice 100.00 F 100.00   100.00
2 526 Invoice 500.00 g 500.00   600.00
4 557 Invoice 1000.00   1000.00   1600.00
5 3151 Payments 100.00 F   100.00 1500.00
6 3190 Payments 250.00 g   250.00 1250.00
7   Totals     1600.00 350.00 1250.00

You can see how payments were applied to transactions by following the match sequence:

  • Sage Intacct assigns a match sequence of F to invoice 410 and a match sequence of g to invoice 526.
  • The F match sequence is in upper case letters because invoice 410 is fully paid, as you can see from the matching payment entry in line 5.
  • The g match sequence is lower case because invoice 526 is partially paid, as you can see from the matching payment entry in line 6.

When a single payment is applied to multiple transactions, the report shows each amount that was applied to a single transaction on its own line.

For example, say you have 3 invoices entered for a customer, totaling 450. You record that the customer paid all 3 invoices using a single check. Instead of showing a single payment line in the amount of 450, the Customer reconciliation report lists each payment individually, with a match sequence that corresponds to the invoice that was paid.

Match sequence example for 3 transactions paid with 1 payment
  Document Txn Type Txn amount Match sequence Charges Payments Balance
1 3251 Invoice 150.00 H 150.00   150.00
2 3287 Invoice 175.00 I 175.00   325.00
4 3301 Invoice 125.00 J 125.00   450.00
5 5897 Payments 150.00 H   150.00 300.00
6 5897 Payments 175.00 I   175.00 125.00
7 5897 Payments 125.00 J   125.00 0.00
8   Totals     450.00 450.00 0.00

In this example, the match sequences are all in upper case because all three transactions were paid in full.

Say your customer has a credit C390 in the amount of 50.00 and an invoice 4001 for 500.00. You record a check payment you receive from the customer in the amount of 450.00. You apply their credit to the remaining balance.

In this scenario, the Customer reconciliation report shows the following entries.

  • The credit (line 1) is given a match sequence of K and the invoice (line 2) is given a match sequence of L.
  • Application of the credit (line 4) and the check payment (line 5) both match to the invoice.
  • The balancing entry for the application of the credit (line 3) matches to the credit (line 1).
Match sequence example for 3 transactions paid with 1 payment
  Document Txn Type Txn amount Match sequence Charges Payments Balance
1 C600 Adjustment 50.00 K (50.00)   (50.00)
2 4001 Invoice 500.00 L 500.00   450.00
3 C600 C600 applied on 4001 50.00 K 50.00   500.00
4 C600 C600 applied on 4001 50.00 L   50.00 450.00
5 1024 Payments 450.00 L   450.00 0.00
6   Totals     500.00 500.00 0.00

Say your customer has an invoice in the amount 100 and you record a payment of the full amount. The Customer reconciliation report shows an entry for the invoice (line 1) and the payment (line 2). Sage Intacct assigns an uppercase match sequence (N) to these lines.

Match sequence example for 3 transactions paid with 1 payment
  Document Txn Type Txn amount Match sequence Charges Payments Balance
1 2050 Invoice 100.00 N 100.00   100.00
2   Payments 100.00 N   100.00 0.00
3   Totals     100.00 100.00 0.00

You discover the payment was recorded in error and reverse the payment, without reversing the invoice. When you view the Customer reconciliation report again, you see an additional entry (line 3) that reverses the payment. The invoice, payment, and reversal all have the same match sequence, which is now lower case because the invoice is not fully paid.

Match sequence example for 3 transactions paid with 1 payment
  Document Txn Type Txn amount Match sequence Charges Payments Balance
1 2050 Invoice 100.00 n 100.00   100.00
2   Payments 100.00 n   100.00 0.00
3   Reversal (100.00) n   (100.00) 100.00
4   Totals     100.00 0.00 100.00