Introduction to Matching Reversal

Matching reversal is the concept where a debit or credit made to a designated account is matched with its respective contra entry at a later date. For example, a tour advance given to an employee is matched with the travel expenses when bills are produced after the travel. There usually is a reference number generated when the initial entry is passed. This number is used to match the entries when a contra entry is made.

In the current China banking practice, Matching Reversal is a special functionality done to track the outstanding balances of the designated accounts. This also helps a bank to keep track of transactions made using these accounts.

The CNMB Matching Reversal features provide the following functionality:

• Internal accounts are parameterized with account types (Debit or Credit) for reconciliation.
• The bank has an option to set different account type definitions for each branch.
• When an FUNDS.TRANSFER (FT) or TELLER (TT) transaction is made, if the details match with the account type mentioned for the internal account, a unique sequence number will get generated along with the transaction details captured.
• The user can input the first transactions unique sequence number while doing reversal TT or FT transactions to reconcile the account details.
• The transaction details are reconciled as one to one transaction or one to many transactions.
• If unique sequence detail entered on TT or FT transaction does not match should be resulted in the warning message.
• The user can manually reconcile unique sequence number details.
• All reconciled transaction details are stored for banks enquiries.
• Enquiries should be available to view the stored unique sequence number details or reconciled transaction details and partially or not reconciled transactions.

Click here to understand the terms and abbreviations used in this functionality.