documentation/content/applications/finance/accounting/bank/reconciliation_models.rst

=====================
Reconciliation models
=====================

Reconciliation models are used to automate the :doc:`bank reconciliation <reconciliation>` process,
which is especially handy when dealing with recurring entries like bank fees. Reconciliation models
can also be helpful in handling :doc:`cash discounts <../customer_invoices/cash_discounts>`.

Each model is created based on a :ref:`model type <models/type>` and :guilabel:`bank transaction
conditions`.

.. seealso::
   - :doc:`bank_synchronization`
   - `Odoo Tutorials: Reconciliation models <https://www.odoo.com/slides/slide/reconciliation-models-1841?fullscreen=1>`_

.. _models/type:

Reconciliation model types
==========================

The reconciliation models are available by going to :menuselection:`Accounting --> Configuration
--> Banks: Reconciliation Models`. For each reconciliation model, a :guilabel:`Type` must be set.
Three types of models exist:

- :guilabel:`Button to generate counterpart entry`: a button is created in the resulting entry
  section of the bank reconciliation view. If clicked, this button generates a counterpart entry to
  reconcile with the active transaction based on the rules set in the model. The rules specified in
  the model determine the counterpart entry's account(s), amount(s), label(s), and analytic
  distribution;
- :guilabel:`Rule to suggest counterpart entry`: used for recurring transactions to match the
  transaction to a new entry based on conditions that must match the information on the transaction;
- :guilabel:`Rule to match invoices/bills`: used for recurring transactions to match the transaction
  to existing invoices, bills, or payments based on conditions that must match the information on
  the transaction.

Default reconciliation models
=============================

In Odoo, different models are available by default depending on the company's fiscal localization.
These can be updated if needed. Users can also create their own reconciliation models by clicking
:guilabel:`New`.

.. important::
   If a record matches with several reconciliation models, the first one in the *sequence* of models
   is applied. You can rearrange the order by dragging and dropping the handle next to the name.

   .. image:: reconciliation_models/list-view.png
      :alt: Rearrange the sequence of models in the list view.

Invoices/Bills perfect match
----------------------------

This model should be at the top of the *sequence* of models, as it enables Odoo to suggest matching
existing invoices or bills with a bank transaction based on set conditions.

.. image:: reconciliation_models/invoices-bills-perfect-match.png
   :alt: Set rules to trigger the reconciliation.

Odoo automatically reconciles the payment when the :guilabel:`Auto-validate` option is selected, and
the model conditions are perfectly met. In this case, it expects to find on the bank statement's
line the invoice/payment's reference (as :guilabel:`Label` is selected) and the partner's name
(as :guilabel:`Partner is set` is selected) to suggest the correct counterpart entry and reconcile
the payment automatically.

Invoices/Bills partial match if underpaid
-----------------------------------------

This model suggests a customer invoice or vendor bill that partially matches the payment when the
amount received is slightly lower than the invoice amount, for example in the case of
**cash discounts**. The difference is reconciled with the account indicated in the
:guilabel:`counterpart entries` tab.

The reconciliation model :guilabel:`Type` is :guilabel:`Rule to match invoices/bills`, and the
:guilabel:`Payment tolerance` should be set.

.. image:: reconciliation_models/partial-match.png
   :alt: Set rules to trigger the reconciliation.

.. note::
   The :guilabel:`Payment tolerance` is only applicable to lower payments. It is disregarded when an
   overpayment is received.

.. seealso::
   :doc:`../customer_invoices/cash_discounts`

Line with bank fees
-------------------

This model suggests a counterpart entry according to the rules set in the model. In this case, the
reconciliation model :guilabel:`Type` is :guilabel:`Rule to suggest counterpart entry`, and the
:guilabel:`Label` can be used for example, to identify the information referring to the
:guilabel:`Bank fees` in the label of the transaction.

.. image:: reconciliation_models/bank-fees.png
   :alt: Set rules to trigger the reconciliation.

.. note::
   `Regular expressions <https://regexone.com/>`_, often abbreviated as **Regex**, can be used in
   Odoo in various ways to search, validate, and manipulate data within the system. Regex can be
   powerful but also complex, so it's essential to use it judiciously and with a good understanding
   of the patterns you're working with.

   To use regular expressions in your reconciliation models, set the :guilabel:`Transaction Type`
   to :guilabel:`Match Regex` and add your expression. Odoo automatically retrieves the
   transactions that match your Regex expression and the conditions specified in your model.

   .. image:: reconciliation_models/regex.png
      :alt: Using Regex in Odoo

Partner mapping
===============

Partner mapping allows you to establish rules for automatically matching transactions to the correct
partner account, saving time and reducing the risk of errors that can occur during manual
reconciliation. For example, you can create a partner mapping rule for incoming payments with
specific reference numbers or keywords in the transaction description. When an incoming payment
meets these criteria, Odoo automatically maps it to the corresponding customer's account.

To create a partner mapping rule, go to the :guilabel:`Partner Mapping` tab and enter the
:guilabel:`Find Text in Label`, :guilabel:`Find Text in Notes`, and :guilabel:`Partner`.

.. image:: reconciliation_models/partner-mapping.png
   :alt: defining partner mapping