Set an acceptable amount difference between your invoices and statements
Learn how to set a Matching Tolerance in your Statement settings and define what qualifies as an acceptable amount mismatch between invoice and statement lines. Choose between percentage or fixed amounts to streamline your reconciliation process.
Contents
The five-step reconciliation process
Xelix follows a five-step reconciliation process. In this article, we'll dive deeper into our Matching Tolerance settings that allow you to customise your matching conditions to see more 'Match' and less 'Investigate' across your rec results.
The other steps:
How do we classify your invoices? check How we match invoices: Matching logic
How do we extract information from your invoices? check How to reconcile a Statement in Xelix
Want to dive deeper in match? check How we assign Status and Actions: Matching criteria
How do we present your reconciliation results? check How to set a Reconciliation Basis to learn how our Status and Assign Actions can ignore invoice timing and/or posting details
How do we export your reconciliations? check How to export and share your reconciliation
2. What is matching tolerance?
Matching Tolerance reconciles statements by ignoring minor amount differences between the invoice and statement.
Generally, when Xelix performs reconciliations, we spot and flag differences between invoice and statement amounts. However, if minor amount differences don't matter to you, you can set tolerance limits to automatically match invoices and statements that fall under your acceptable difference limits.
Enable this setting to save time you'd normally spend investigating mismatches that don't affect your bottom line.
3. Matching Tolerance limits
Under your General Statement Settings, you'll find the Matching Tolerance setting.
You will see two forms of setting an acceptable difference limit.
💡 Note: if you reconcile a statement in a different currency from your organisation currency, we'll convert all values to your org currency and apply any limits you've set. For example, if your org currency is GBP, we'll convert all other currencies to GBP before applying the limit tolerance.
3.1 Percentage limit (%):
Invoices will be matched when amounts are within the percentage range
When you set a percentage limit, invoices will be matched to statements if the difference between their amounts doesn’t exceed the upper and lower bands of the percentage you set.
💡 Note: e.g. for a 5% limit on a £100 invoice, invoices between £95-£105 will be "matched"
3.2 Absolute Limit:
Invoices will be matched when amounts are within the absolute range
When you set an absolute limit, invoices will be matched to statements if the difference between their amounts doesn’t exceed the upper and lower bands of the limit you set.
💡 Note: e.g. for a £1 absolute limit on a £100 invoice, invoices between £99-£101 will be "matched"
3.3 What happens when you set a Percentage and an Absolute limit?
When you set both a percentage and absolute limit, the invoice is considered matched if:
the amount difference doesn't exceed the range of the more restrictive limit
the amount is within both tolerance ranges
Let’s break that down…
When both limits are enabled, the system recognises two ranges:
the lower band - higher band of the % limit
For example: You have a 5% limit on a £100 invoice, invoices between £95-£105 will be "matched"
the lower band - the higher band of the absolute limit
For example: you have a £1 absolute limit on a £100 invoice, invoices between £99-£101 will be "matched"
The bar in this image spans the combined range for a £100 invoice with a 5% + £1 tolerance. In this case the absolute tolerance range is lesser i.e. more restrictive and within the % tolerance. Therefore for this statement line, invoices from £99-101 will be “matched”.
📌 Tip: click on the “Examples” button to see how different combinations of percentage and absolute limits can be applied to accept amount mismatches.
4. What happens after you set matching tolerance(s)
After setting your matching tolerance and completing a reconciliation, your rec results page will highlight reconciliation lines within your acceptable tolerance limits through system-generated comments.
Let’s go through an example reconciliation:
You have set an absolute limit of £1.
Xelix performs a reconciliation with the applied tolerance. In your Reconciliation Results page you will typically see more “Match” items under your “Amount Check” column - this is because more invoices have been matched under your set tolerance limits.
📌 Tip: On your rec results page, click on the Columns & Filters section and enable the KPI: “Difference in amount” column to identify exactly which reconciliation lines fall under your tolerance limit, and by how much.
You will notice more reconciliation lines with comments. This is a system-generated comment for each invoice that has been matched under your tolerance limits. The comment will clearly state the invoice and statement amount and will not be included in any export/shared copy.
Watch this space as we release additional customisation to our Statements platform, bringing you one step closer to touchless statements!