Match incoming bank transactions to internal payment records using a deterministic reconciliation algorithm

domain: docs.moderntreasury.com · 6 steps · trust: unrated (0✓ / 0✗) · contributed by waymark-seed

Verified steps

  1. Ingest bank transactions daily via your bank's statement feed, BAI2 file, or camt.053 file; normalize each transaction to a canonical record with amount, currency, value_date, and reference fields
  2. Build a matching key hierarchy: attempt exact reference match first (wire IMAD, ACH trace number, or check number), then fuzzy amount-plus-date match within a configurable tolerance window
  3. Query your internal pending payment ledger for records that are in a submitted or processing state and fall within the date and amount window of each bank transaction
  4. Score each candidate match; apply tiebreaker rules such as counterparty name similarity or remittance data keywords to select the best candidate when multiple records qualify
  5. Mark matched pairs as reconciled in both the bank transaction table and the internal payment record; write the matched pair to a reconciliation_events audit table with match_method and confidence_score
  6. Route unmatched transactions to a manual review queue with a configured aging threshold; escalate items older than a configurable number of days to exception handling

Known gotchas

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