Understanding Supplier reconciliation match sequences

Match sequences are alpha sequences used in the Supplier reconciliation report to show the relationship between AP supplier invoices and the credits or payments applied to them.

Sage Intacct assigns a match sequence to a AP supplier invoice when you apply a payment or a credit against it. All payment entries that relate to the AP supplier invoice use the same sequence, establishing a relationship between them. As long as the AP supplier invoice is in a partially paid state, match sequences display in lower case letters, indicating that the AP supplier invoice is not completely reconciled. Once the AP supplier invoice is paid in full, the match sequences are changed to upper case letters.

In the case of a credit, such as an adjustment or an advance, a match sequence is assigned to the credit when it is applied to a transaction. You can track how the credit is matched to transactions by looking at credit's balancing entries, also called contra entries. The credit entry and the credit balancing entries share the same match sequence. This sequence displays in lower case letters until the credit is fully applied.

The detailed examples that follow provide a more in-depth view of how match sequences appear in different scenarios.

Say you recorded three AP supplier invoices for a supplier, in the amounts 100, 500, and 1000. Before you make any payment against the AP supplier invoices, they display in the Supplier reconciliation report as follows.

Match sequence example for new transactions
  Document Txn Type Txn amount Match sequence Charges Payments Balance
1 410 AP supplier invoice 100.00   100.00   100.00
2 526 AP supplier invoice 500.00   500.00   600.00
4 557 AP supplier invoice 1000.00   1000.00   1600.00
9   Totals     1600.00 0.00 1600.00

Sage Intacct has not assigned a match sequence to any of these transactions because you have not yet applied a payment or a credit against them.

After you pay AP supplier invoice 410 in full and make a partial payment against AP supplier invoice 526, your Supplier reconciliation report shows as follows.

Match sequence example for a fully, partially, and unpaid transaction
  Document Txn Type Txn amount Match sequence Charges Payments Balance
1 410 AP supplier invoice 100.00 F 100.00   100.00
2 526 AP supplier invoice 500.00 g 500.00   600.00
4 557 AP supplier invoice 1000.00   1000.00   1600.00
5   Payments 100.00 F   100.00 1500.00
6   Payments 250.00 g   250.00 1250.00
7   Totals     1600.00 350.00 1250.00

You can see how payments were applied to transactions by following the match sequence:

  • Sage Intacct assigns a match sequence of F to AP supplier invoice 410 and a match sequence of g to AP supplier invoice 526.
  • The F match sequence is in upper case letters because AP supplier invoice 410 is fully paid, as you can see from the matching payment entry in line 5.
  • The g match sequence is lower case because AP supplier invoice 526 is partially paid, as you can see from the matching payment entry in line 6.

When a single payment is applied to multiple transactions, the report shows each amount that was applied to a single transaction on its own line.

For example, say you have 3 AP supplier invoices for a supplier that total 450. You pay all three AP supplier invoices in full with a single payment. Instead of showing a single payment line in the amount of 450, the Supplier reconciliation report lists each payment individually, with a match sequence that corresponds to the AP supplier invoice that was paid.

Match sequence example for 3 transactions paid with 1 payment
  Document Txn Type Txn amount Match sequence Charges Payments Balance
1 3251 AP supplier invoice 150.00 H 150.00   150.00
2 3287 AP supplier invoice 175.00 I 175.00   325.00
4 3301 AP supplier invoice 125.00 J 125.00   450.00
5   Payments 150.00 H   150.00 300.00
6   Payments 175.00 I   175.00 125.00
7   Payments 125.00 J   125.00 0.00
8   Totals     450.00 450.00 0.00

In this example, the match sequences are all in upper case because all three transactions were paid in full.

Say you have a supplier credit C390 in the amount of 50.00 and AP supplier invoice 4001 in the amount of 500.00. When you pay the supplier, you apply credit C390 to the AP supplier invoice along with a cheque payment in the amount 450.00.

In this scenario, the Supplier reconciliation report shows the following entries.

  • The credit (line 1) is given a match sequence of K and the AP supplier invoice (line 2) is given a match sequence of L.
  • Application of the credit (line 4) and the cheque payment (line 5) both match to the AP supplier invoice.
  • The balancing entry for the application of the credit (line 3) matches to the credit (line 1).
Match sequence example for 3 transactions paid with 1 payment
  Document Txn Type Txn amount Match sequence Charges Payments Balance
1 C600 Adjustment 50.00 K (50.00)   (50.00)
2 4001 AP supplier invoice 500.00 L 500.00   450.00
3 C600 C600 applied on 4001 50.00 K 50.00   500.00
4 C600 C600 applied on 4001 50.00 L   50.00 450.00
5 1024 Payments 450.00 L   450.00 0.00
6   Totals     500.00 500.00 0.00

Say you have an AP supplier invoice in the amount 100 and you make payment in full. The Supplier reconciliation report shows an entry for the AP supplier invoice (line 1) and the payment (line 2). Sage Intacct assigns an uppercase match sequence (N) to these lines.

Match sequence example for 3 transactions paid with 1 payment
  Document Txn Type Txn amount Match sequence Charges Payments Balance
1 2050 AP supplier invoice 100.00 N 100.00   100.00
2   Payments 100.00 N   100.00 0.00
3   Totals     100.00 100.00 0.00

You discover the payment was made in error and void the payment, without reversing the AP supplier invoice. When you view the Supplier reconciliation report again, you see an additional entry (line 3) that reverses the payment. The AP supplier invoice, payment, and reversal all have the same match sequence, which is now lower case because the AP supplier invoice is not fully paid.

Match sequence example for 3 transactions paid with 1 payment
  Document Txn Type Txn amount Match sequence Charges Payments Balance
1 2050 AP supplier invoice 100.00 n 100.00   100.00
2   Payments 100.00 n   100.00 0.00
3   Reversal (100.00) n   (100.00) 100.00
4   Totals     100.00 0.00 100.00

Say you have an AP supplier invoice in the amount of 1000 and a credit (debit memo adjustment) in the amount of 50. You apply the credit to the AP supplier invoice and then later make full payment on the balance.

When you run the Supplier reconciliation report, you see that the AP supplier invoice, credit application, and payment are matched using the sequence S. The credit and the balancing entry are matched using the sequence T.

Match sequence example showing a credit applied to a transaction with a payment
  Document Txn Type Txn amount Match sequence Charges Payments Balance
1 5520 AP supplier invoice 1000.00 S 1000.00   1000.00
2 C601 Adjustment (50.00) T (50.00)   950.00
3 C601 C601 applied on 5520 50.00 S   50.00 900.00
4 C601 C601 applied on 5520 50.00 T 50.00   950.00
5   Payments 950.00 S   950.00 0.00
6   Totals     1000.00 1000.00 0.00

Later, you discover that the credit was issued in error, and so you reverse the debit memo adjustment. When you run the Supplier reconciliation report again, you see the following:

  • The match sequence for the AP supplier invoice is now in lower case, because the AP supplier invoice is no longer fully paid (line 1).
  • A new Reversed Adjustment entry (line 3) adds a charge for the adjustment amount, reversing the adjustment that was previously applied (line 2).
  • The adjustment payment entry (line 5) and the corresponding balancing entry (line 5) are now zeroed out.
  • 2 lines balance the new Reversed entry and 2 more lines balance the Reversal (lines 7 through 10).
  • The ending balance is 50.00, the remaining unpaid amount.
Match sequence example showing a credit reversal
  Document Txn Type Txn amount Match sequence Charges Payments Balance
1 5520 AP supplier invoice 1000.00 s 1000.00   1000.00
2 C601 Adjustment (50.00) T (50.00)   950.00
3 Reversed - C601 Reversed Adjustment 50.00 T 50.00   1000.00
4 C601 C601 applied on 5520 50.00 s 0.00   1000.00
5 C601 C601 applied on 5520 50.00 T   0.00 1000.00
6   Payments 950.00 s   950.00 50.00
7 Reversed - C601 Reversed - C601 applied on 5520 (50.00) T (50.00)   0.00
8 Reversed - C601 Reversed - C601 applied on 5520 (50.00) T   (50.00) 50.00
9 Reversed - C601 Reversed - C601 applied on 5520 (Reversed) (50.00) T (50.00)   0.00
10 Reversed - C601 Reversed - C601 applied on 5520 (Reversed) (50.00) T   (50.00) 50.00
    Totals     900.00 850.00 50.00