Sometimes, when reconciling your bank transaction in Holded, you may come across cash inflows or outflows that are not related to any invoice or ticket. For example, a loan, a transfer between accounts, a cash inflow, or a bank commission.
In these cases, the reconciliation process is different from that of a sales or purchase invoice. Here is how to proceed depending on the type of transaction.
1. Reconciling a loan received or repaid
When a company receives a loan, it must correctly record the origin of that money. The same applies when part or all of the amount is repaid.
To reconcile the installment of a loan:
Go to Treasury > Accounts and enter the bank account where the loan was received or from which the loan was repaid.
Click Reconcile at the top right.
Filter by “Pending”, and mark the transaction, e.g. Loan of -240€.
On the right hand side (documents), click Transfer.
At the top of the pop-up panel, choose “Journal Entry”, as you will need more than one accounting line.
Add a first line:
Under “Account”, select 52000000 - Short-term loans from credit institutions.
Enter 225 € on the debit side.
Add a second line to reflect the interest:
Under “Account”, select 62600000 - Bank fees.
Enter 15 € in the debit.
If everything is squared, click on Create and reconcile.
☝🏼 If the loan is repaid in several payments, you will have to repeat this process for each transaction.
2. Reconciling a transfer between accounts in a single operation
A transfer between your own accounts is neither income nor an expense. The money simply changes location.
When you make a transfer between two bank accounts connected to Holded, two transactions appear: one leaving one account and one entering the other. To keep your accounting up to date, both transactions must be reflected in your books, and in Holded you can reconcile both transactions at once, in a single operation.
Account | Bank transaction | Amount |
Bank A (source) | Outflow | -€1,000 |
Bank B (destination) | Inflow | +€1,000 |
Before you start
Both bank accounts must be active in Holded and both transactions must be in Holded, unreconciled. If the transfer isn't reflected in Holded (for example, one of the accounts isn't connected), use the Accounting account reconciliation option instead.
If the two transactions have different dates, your company needs a bridge account (suspense account) in its chart of accounts. See "When the transfer leaves on one day and arrives on another" below.
The account selector only lets you pick bank accounts that have an accounting account assigned from groups 572, 574, or 570.
Both transactions must have the same amount with opposite signs, and a maximum difference of 30 days between their dates.
This option doesn't work with transfers made up of multiple transactions, or between accounts in different currencies.
Steps to reconcile the transfer between accounts
Go to the bank reconciliation screen and locate the transfer transaction.
Open the reconcile without a document option.
In the Impute movement section, select Other movement. Hovering over Other movement shows the text: "Reconciles transfers between accounts, when both transactions are in Holded".
In the Account field, choose the other bank account in the transfer. You can't select the account of the transaction you're reconciling.
Check the Accounting account field. It fills in automatically once you choose the account, or you can do it the other way round: choose the Accounting account first and Holded will fill in the Account. The list only includes accounting accounts assigned to an active bank account, excluding the source one.
Check the Description field. It's filled in with the source transaction's details. It's mandatory.
Wait a few seconds in the Select transaction section. Holded searches among the pending transactions of the chosen account.
Check the suggestion. Holded only suggests transactions with the same amount and opposite sign, ordered by the closest date to your transaction.
If the suggestion isn't correct, click to see more.
Select the transaction that matches the transfer.
Click the button to reconcile.
What you should see when done
A success message appears.
Both transactions appear as reconciled.
Each transaction has its associated payment.
Each bank's balance in accounting matches its statement.
Accounting entries for the transfer
Transfer with the same date
If both transactions have the same date, Holded creates a single journal entry between the two bank accounts, and a payment for each transaction.
Example: a transfer of €1,000 from bank A (5720001) to bank B (5720002).
Account | Description | Debit | Credit |
5720002 | Bank B | €1,000 |
|
5720001 | Bank A |
| €1,000 |
Total: Debit €1,000 = Credit €1,000.
When the transfer leaves on one day and arrives on another
If the dates differ, Holded creates two journal entries, one per transaction, each with its own accounting date. It uses a bridge account so neither entry is left unbalanced.
Example: on Friday 3 October, €1,000 leaves bank A and arrives at bank B on Monday 6.
If a single entry were created, during those days there would always be a bank whose accounting doesn't match its statement. If the transfer crosses a closing period (leaving on 30 September and arriving on 2 October), bank B's quarterly closing balance wouldn't match its statement and no one would know why.
Entry 1, Friday 3 (leaves bank A):
Account | Description | Debit | Credit |
555 | Items pending application | €1,000 |
|
5720001 | Bank A |
| €1,000 |
Entry 2, Monday 6 (arrives at bank B):
Account | Description | Debit | Credit |
5720002 | Bank B | €1,000 |
|
555 | Items pending application |
| €1,000 |
Each entry balances (Debit €1,000 = Credit €1,000) and the bridge account returns to zero once both transactions are reconciled. Each payment is created with the accounting date of its transaction.
The bridge account depends on each country's chart of accounts:
Country | Bridge account |
Spain and Andorra | 555 |
France | 471 "Comptes d'attente" |
All other countries | Not available |
In other countries (US, UK, UAE, Mexico, Venezuela, Norway, Argentina, Portugal, Netherlands, and Estonia), the chart of accounts doesn't include an equivalent account. Holded shows "This feature isn't supported for this country. Contact support." and doesn't reconcile.
If your company doesn't have the bridge account, Holded warns you as soon as you select a transaction from another day. If you try to reconcile anyway, the same error appears and nothing is created.
Other situations when reconciling
Someone reconciled the other transaction in the meantime. If someone else reconciles the transaction you had selected, the reconciliation isn't applied and Holded warns you that the transaction is no longer available. Reopen the modal and select another one.
Something fails when reconciling. The operation is all-or-nothing. If creating a payment or a journal entry fails, neither transaction is reconciled, both remain pending, and an error message appears. You can try again.
You want to undo the reconciliation. Unreconciling one of the two transactions also unreconciles the other. Both payments and their associated journal entries are deleted.
The transfer isn't in Holded. If only one of the transactions is in Holded, use the Accounting account option instead.
3. Reconcile an unbilled cash receipt.
Sometimes you may receive money in your bank account that is not linked to an invoice, such as a one-time income, a refund, or an informal collection.
To reconcile this type of income:
Go to Treasury > Accounts and access the account where you received the money.
Click Reconcile.
Select the incoming transaction.
In the right panel, click Transfer.
Under “Accounting account”, choose:
55500000 - To-be-applied items if you do not yet know what the entry corresponds to.
a more specific accounting account if you know its origin.
Click Transfer and reconcile.
☝🏼 You can reclassify this transaction later from the transaction list, once you are clear about its origin.
4. Reconcile a cash receipt
If what you are recording is an inflow of cash to your bank account (for example, a deposit made at the teller window or a cashier's deposit), the process is also carried out by means of an accounting transfer, but in this case it must be reflected as a transfer from the cash account.
To do this:
Go to Treasury > Accounts.
Access the account where the income has been received.
Click on Reconcile in the upper right corner.
Mark the corresponding incoming transaction.
In the right panel, click Transfer.
Under “Accounting account”, select 57000000 - Cash, euros (or other equivalent cash account).
☝🏼The reconciliation will use the accounting account you have set up for that bank account. You can change it if you need to. Learn how here.
Click Transfer and reconcile.
This will generate the corresponding accounting entry, transferring the amount from the cash account (570) to the bank account (572). You can review the entry in Accounting > Ledger.
5. Reconcile a bank commission
When the bank charges you a commission, this transaction is not linked to an invoice either. Even so, you must record it correctly so that your accounting is up to date.
See how to do this here.