When a client moves money between two of their own accounts, for example from checking to savings or to pay a credit card, LedgerSync can find both sides of the transfer and pair them. The money leaves one account and arrives in the other for the same amount within a few days, and LedgerSync marks the two transactions as one transfer.

You do not need to create a rule. The only setup is mapping one global category, Intercompany Clearing, for each client, as described below.

Quick answers

• Do matched transfers get a category automatically? Yes, once you have mapped Intercompany Clearing for that client, but only for transfers found after you map it. They still wait in For Review until you accept them.
• Do I have to fill in the payee? Yes. LedgerSync never fills in the payee on a transfer.
• Can I confirm or dismiss on the Intercompany Transfers tab? No. That tab is a list only. Confirm and Dismiss are behind the transfer icon in the Transactions list.
• Does confirming categorize or sync the transfer? No. You still accept and sync both transactions as usual.

What needs to be in place

• The client is connected to QuickBooks Online and you work in Rules Engine > QuickBooks. Transfer detection does not run in the ZohoBooks or Manual Rules Engine.
• Both accounts are connected through MasterCard. If either account is connected through MX or Statements & Checks, the transfer is not detected. This includes American Express and Bank of America accounts connected through MX. Accounts at those banks that are connected through MasterCard are still covered.
• Both accounts belong to the same client in LedgerSync. A transfer between two different clients, for example two related companies set up as separate clients, is not detected.
• Neither transaction is excluded. Excluded transactions are never paired.

How a pair is found

Detection runs automatically each time new MasterCard transactions come in for the client. LedgerSync pairs two transactions when:

• They are in two different accounts of the same client, at the same bank or at different banks.
• The amounts match exactly, to the cent, with one side money out and the other money in.
• Their dates are no more than 3 calendar days apart. LedgerSync uses the posted date, or the transaction date when there is no posted date.

The other side can be a transaction that came in with an earlier refresh. Each transaction can belong to only one pair. If there are several possible matches, LedgerSync picks the one with the closest date. If two or more are equally close, it also looks at the descriptions to choose one, and if none clearly fits, it does not pair them.

What you see on the transactions

In Rules Engine > QuickBooks > Transactions, each matched transaction has a transfer icon (two arrows) at the right end of the row.

• If the transaction was in For Review with no rule and no category, and was not synced, LedgerSync shows Intercompany Transfer in the Applied Rule column. If you have mapped Intercompany Clearing for the client, it also adds the mapped account as the category. The transaction stays in For Review.
• If the transaction already had a rule or a category, was already accepted, or was already synced, LedgerSync leaves it as it is and only adds the icon.

To see only these transactions, select For Review, click the filter icon, tick Transfer Matched, then click the green check mark to apply.

The Intercompany Transfers tab, next to Transactions and Sync Status, lists every pair found for the client you select, with the amount and status of each pair. Click Transaction A or Transaction B to open either side.

One-time setup per client: map Intercompany Clearing

The first time LedgerSync finds a transfer for any of your clients, it adds a global category called Intercompany Clearing to your firm. If you already have a global category with that name, it uses yours. Map it to the right QuickBooks account for each client:

1. Go to Rules Engine > QuickBooks > Settings > Global Settings > Global Categories.
2. Click Intercompany Clearing.
3. Under Connect Client Categories, find the client and choose the QuickBooks account in the Quickbooks Category (GL) column, for example an intercompany clearing or due to/due from account.
4. Click Save.

After that, new transfers found for that client get the mapped account as their category. Until you map it, transfers stay in For Review without a category, and you can pick one yourself.

Important: mapping does not update transfers that were already found. For those, pick the category yourself.

Confirm or dismiss a match

You confirm or dismiss a match from the Transactions list. Click the transfer icon on either transaction to see the match: its status, how it was detected, and the other transaction's date, amount, account and description. While the status is SUGGESTED, you can:

• Confirm: marks the pair as a confirmed transfer. This does not categorize, accept or sync anything.
• Dismiss: removes the match and the transfer icon, and LedgerSync will not suggest the same pair again. On each side that is still in For Review, was not synced and shows Intercompany Transfer as the applied rule, LedgerSync also removes that label and the category.

You act once per pair. Confirming or dismissing on one side applies to both transactions.

Once a match is confirmed or dismissed, the Confirm and Dismiss buttons no longer appear, so the choice cannot be changed from the app.

Accept and sync transfers

LedgerSync never accepts, excludes or syncs either side of a transfer on its own. To finish a transfer, fill in the payee, and the category if it is empty, then select the transactions and click Accept to move them to Categorized. Sync them to QuickBooks from Categorized as usual.

There is no setting for a default transfer payee. To set the same payee on several transfers at once, select the client in the filter, tick the transactions and choose the payee in Assign Payee.

If you do not want one side of a transfer sent to QuickBooks, exclude it yourself as usual.

Need help? Contact us at support@ledgersync.com.