Rules Engine — Rule Direction: Money In, Money Out, or Both
Overview
Every rule in the LedgerSync Rules Engine has a direction setting that controls which transactions the rule can match: Money In, Money Out, or Money In or Out. Choosing the right direction prevents a rule from mis-categorizing refunds, reversals, or deposits that happen to share a description with expenses.
The Three Direction Options
| Direction | Matches | Typical Use |
|---|---|---|
| Money Out | Debits / outgoing transactions only | Vendor expenses — e.g., "Staples" → Office Supplies |
| Money In | Credits / incoming transactions only | Revenue and deposits — e.g., "Stripe Payout" → Sales Income |
| Money In or Out | Both directions with a single rule | Payees with activity in both directions — e.g., a vendor you both pay and receive refunds from, transfers, or payroll providers with debits and credits |
Why "Money In or Out" Exists
Previously, a rule could only be Money In or Money Out — so a firm that wanted "Amazon" categorized in both directions (purchases and refunds) had to create two nearly identical rules. The "Money in or out" option lets one rule cover both directions.
QuickBooks stays correct: Even when a rule is set to "Money in or out," LedgerSync still applies the correct QuickBooks transaction type (Expense vs. Deposit) based on each transaction’s actual direction. The rule direction only controls matching — not how the transaction posts.How to Set the Direction
- Create or edit a rule (from the Global Rules page or directly from a transaction)
- Find the direction setting (Money In / Money Out / Money In or Out)
- Select the appropriate option and save
Best Practices
- Default to Money Out for expense vendor rules — it keeps refunds out of expense categories unless you want them there
- Use Money In or Out for payees where both directions should land in the same category (refund netting against the expense account)
- Review the rule after the first few matches to confirm the direction behaves as expected
Need Help?
Contact LedgerSync Support at support@ledgersync.com
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