Introduction:
The purpose of the Trovata TMS Cash Management Reconciliation module ("Trovata TMS Cash Recon") is to automate the daily process of clearing and reconciling bank reported transactions and balances.

Prior-day and Current-day Positioning

This process covers both "prior-day" and "current-day" activities. For any given bank and or bank account:

"Prior-day" includes:

Retrieving complete activity for the previous business day for that bank. All activity should be reviewed for inclusion in/comparison with the company's official records ("cleared").
Transactions can be cleared interactively or automatically via user defined matching rules.
Once all bank reported transactions have been cleared, the bank's closing balances for the previous day and the opening balances for the current day can be verified.
Clearing also can include other automation efficiencies such as matching against expected transactions, category assignment, and other data enrichment.

A "Current-day" process is used only for bank accounts where the company wants to manage the intraday cash position for those accounts. Technically current-day clearing is similar to prior-day clearing except typically not all transactions have occurred yet and therefore end of day balancing does not occur.

Automating the Cash Reconciliation and Positioning Process

Trovata TMS supports the daily process of clearing and reconciling both interactively and automatically by the application of user defined matching rules. Using Trovata TMS, treasury can automatically and quickly process significant multi-bank transaction volume activity as soon as made available by the bank resulting in a near real-time cash position available early in the morning.

Definitions

For the purposes of this product overview:

"Trovata TMS" or "Trovata TMS Cash Recon" means the Trovata TMS Cash Reconciliation module set. References to other Trovata TMS modules are explicitly identified in order to maintain clarity.
A "reconciliation" means the daily cash management process of clearing bank transactions including against expected receipts and/or company forecasts such that all bank reported transactions have been accepted/reviewed and incorporated into the company cash position(s).
The terms "Clear" or "Reconcile" are used interchangeably and can refer to the following scenarios:
Accepting a bank reported transaction and creating the corresponding entry in the company's cash books (i.e. a Trovata TMS cashbook).
Clear and match the bank transaction against an expected payment/receipt forecasted by the company.
Matching against an existing company cash book item already created due to a company action known to cause a cash movement (such as a payment, issuance of debt, etc.)

Components

The main components of Trovata TMS Cash Recon are as follows:

#	Component	Purpose
3.	Trovata TMS Cash Clearing Module	This module is the primary module in Trovata TMS Cash Recon and allows the user to: Interactively review and clear bank reported transactions Approve automatically cleared transactions where the rule requests approval Data enrich transactions with category and other information Create and test new automated clearing rules Clearing activities includes accepting new transactions, matching against expected transactions, or rejecting transactions.
1.	Trovata TMS Rules Definition Module	This module allows the user to define or edit the rules for the Auto Matcher Module.
2.	Trovata TMS Auto Matcher Module	This module works behind the scenes to automatically match bank transactions to the preset rules defined in the Rules Definition Module to clear bank transactions.

Bank Reporting and Matching Process Flow

A typical bank reporting and matching process flow is described below:

#	Step	Functionality
1.	Loading Data	Trovata TMS automatically connects and receives bank account transaction and balances from each respective bank. This activity is stored in Trovata TMS as reported from the bank.
2.	Recon matching rules	Trovata TMS provides user defined matching rules that let Trovata TMS automate the clearing/reconciliation and data enrichment of bank transactions. Each rule definition has matching criteria as well as assignment information. Rules can specify automatic acceptance, rejection, and acceptance but with approval required. Rules also specify data enrichment such as assignment of a 'cash flow' category, GL account(s), and other information. Rules can be generally applied or be defined to apply only to very specific transaction types. Rules can also be assigned a priority allowing very specific rules to apply first with more general rules following after only if a high priority rule did not fire. A very general rule can be set with the lowest priority to categorize transactions that otherwise don't trigger any other rule. This general rule can categorize these transactions as "Uncategorized" or "Unknown". Rules can be set to flag sensitive or potentially fraudulent transactions. Rules also can specify actions including: Match an existing Trovata TMS forecast (an expected cash movement in Trovata TMS) Match an existing Trovata TMS cashbook (if already exists in Trovata TMS) Create a new Trovata TMS cashbook from the bank transaction in the event the cashflow is not already in Trovata TMS. Ignore the bank transaction
2.	Auto Clear/Match	Using the user defined matching rules, the Trovata TMS Matcher module automatically processes the new bank reported transactions according to the rule set. The Matcher typically is scheduled to run after bank transactions are retrieved either for prior day or current day bank reporting. The Matcher module processes each bank transaction against the rule set and will use the highest priority rule where the matching criteria applies to the transaction being processed. If the criteria matches, the rule is applied ("fired") such that Trovata TMS marks the transaction as processed, and Trovata TMS will perform the action specified in the rule as described above.
3.	Interactively Clear/Match	Any bank transaction that has not been cleared by the Trovata TMS Matcher can be interactively processed directly by the user using the Trovata TMS Clearing Module.
4.	Reporting	Bank reported transactions have now been analyzed, categorized and are available for positioning monitoring, reporting, and accounting automation.

Trovata TMS Cash Clearing Module

The Trovata TMS Cash Clearing module is an interactive module that automates the clearing and matching of bank activity. This module can be used to:

See all bank transactions that have not been cleared/reconciled
Accept new bank transactions not already recorded in Trovata TMS as a Trovata TMS cashbook
Match new bank transactions to existing Trovata TMS cashbooks
Match new bank transactions to existing Trovata TMS cash forecasts
Clear but ignore any transactions that should not be imported into Trovata TMS
Approve bank transactions that have been automatically matched/cleared via the Trovata TMS auto-matcher module but require approval
Create and test new auto match rules directly from bank reported transactions

Actions

The only action is "Match".

Bank Filter

The Bank Filter shows the bank transaction activity for the selected bank.

Trovata TMS Filter

The Trovata TMS Filter is used only when matching bank transactions against Trovata TMS cashbooks or Trovata TMS forecasts. Otherwise, this screen is not used.

Results

The results screen shows the bank transactions at the top. The user can review and accept each transaction by right clicking on the desired transaction:

Option	Function
Create Cashbook	Creates a cashbook from the bank transaction. The user can add additional information such as Cashflow Category, Accounting information, etc.
View Full Description	View the full description of the bank transaction
View Bank Details	View the full bank transaction details
Create Rule	Create a new rule from the bank transaction
Edit Rule	Edit an existing rule that has been applied to the transaction.

After clearing all the bank transactions and creating the corresponding cashbooks on the screen, the cashbooks can be saved by clicking the save button.

In the event the bank transactions should only be cleared (with no cashbook created), click on the "Clear" checkbox and save.

Rule Definition

Matching rules are managed by the Trovata TMS Cash Reconciliation Rules Manager.

Upon start, the Cash Reconciliation Rules Manager will show a filter screen. In order to use the Recon Manager, the user should first choose an Action.

Select the desired action. If looking for existing rules, enter search criteria, click search and review the results.

To add a new rule, ensure the action is 'Add' and go to the detail screen by clicking on the Detail tab. To view, change, or delete an existing rule, select the desired rule and double click to go to the detail screen.

Rule Detail

A detail screen is available with Rule Info, Match Info, and Action Info tabs.

Fields – Rule Info Tab

Fields	Description
Center
Rule	Rule code – Should be under 12 characters, ALL caps and no space in between. User can use underscore (_) to join two words.
Rule Name	Freeform text for the users to identify what the rule is for.
Priority	Ranging from 0.1-10, 0.1 being the highest priority. Priority field is used when there are two rules that are likely to trap the same transaction and you want to tell Trovata TMS which one should take higher precedence.
Status	This field can be used to inactivate rules that you do not want to use. Default value for any new rule is 'Active'.
Approval Status	The approval status of the rule.
Rule Description	Freeform text for description info.
Parse Session	Inherits the default parse session from the BANK TRANSACTIONS transaction. Click on the parse session to select more than one session code or use * for all.
Type	Inherits the default type code from the BANK TRANSACTIONS transaction. Click on the Type lookup to select more than one type code in a comma separated list.
Bank Account	Inherits the default bank/account code from the BANK TRANSACTIONS transaction. Click on the Bank-Account lookup to select more than one bank account in a comma separated list.
Currency	The currency the transaction is in.
Day	Select whether this rule is for prior, current or any day transaction. OR ignore to use default value.
Pay/Receive	Inherits the default value from the BANK TRANSACTIONS.
As of Day	As of date used in the test rule button below.
Test Rule	The test rule button will apply the rule to the specified bank transactions for the specified "As of Day".
Bank Reference	If entered, will require the entered text in the corresponding bank transaction.
Customer Reference	If entered, will require the entered text in the corresponding bank transaction.
Description	Inherits the default value from the BANK TRANSACTIONS. Description can be part or all of the description reported on the BANK TRANSACTIONS transaction as long as there is no unique transaction information such as: date, transaction sequence number or ID number.
Created By	Who created the rule.
Last Updated By	Who updated the rule.
Approved By	Who approved the last change made to the rule.

Fields - Match Info Tab

Fields	Description
Product Type	Forecast for matching Bank Transactions against forecasts and Cashbook for matching Bank Transactions against cashbooks.
Match Multiple	Yes - if bank transactions are being matched to multiple forecasts. Generally used for ACH.
Match Tolerance Amt.	When matching against forecasts, allow a specified tolerance amount.

Matching Criteria

If matching against a forecast or cashbook, the valid cashbook/forecasts can be limited using the following optional criteria:

Initiating Entity	Trovata TMS Entity
Product	Trovata TMS Product
Bank	Use * if bank code on Bank Transaction and forecast/cashbook is the same. If not, provide Bank code that is on Cashbook/Forecast.
Sub Product	Trovata TMS Sub-product.
Account	Use * if Account code on Bank Transaction and forecast/cashbook is the same. If not, provide Account code that is on Cashbook/Forecast.
Funds Type	Funds type (if match item is a payment).
Line	Line (repetitive) code (if match item is a payment).
Accounting Set	Trovata TMS Accounting Set.
Cash flow Category	Trovata TMS Cash flow category on the forecast/cashbook.
GL Prefix	Trovata TMS GL Prefix.
Billing Code	Not used.
GL Account ID	Trovata TMS GL ID.
Affiliate	Trovata TMS Affiliate Entity.
ID Number	Select Customer Ref # for checks and Ignore for every other case. If selected Customer Ref # it matches the Customer Reference Number on the Bank transaction with the ID Number on the forecast and ignore the Bank and Account.
System	Source system if matching against a forecast.
Notes
Description	Generic part of description that repeats in similar transactions on Cashbook/Forecast, if any. Blank if none.

Fields - Action Info Tab

Field	Description
Create Cash	'No' for not creating cashbooks if a match is found; 'Yes' for creating a cashbook if a match is found.
Clearance	'Auto' if created/matched transaction should be auto cleared. 'Manual' if user wants to clear them manually.
Action	If no match is found, one of these four actions can be selected: 'Create Cashbook' 'Create Forecast' 'Reprocess Bank Transaction' 'Suppress Bank Transaction' Use 'Create Cashbook' for prior day rules and 'Create Forecast' for current day rules.
Clearance	Auto means if the rule fires, the transaction is automatically cleared. Manual means the transaction is cleared but requires user review.
Description	If user wants a specific Description on the generated cashbook/forecast. If not, Description will flow through Cashbook/Forecast when there is a match and will flow through Bank Transaction when there is not a match.
Bank	Value to assign when creating a cashbook/forecast.
ID Number	Value to assign when creating a cashbook/forecast.
Account	Value to assign when creating a cashbook/forecast.
Internal Bank	Value to assign when creating a cashbook/forecast. Used for inhouse banking only.
Cashflow category	Choose a valid cashflow category from the list for creating cashbook/forecast in Trovata TMS. This field will be used for positioning and forecasting purposes.
Billing Code	Value to assign when creating a cashbook/forecast. Used for inhouse banking only.
Workgroup	Value to assign when creating a cashbook/forecast. Used for inhouse banking only.
Accounting	Suppressed, if there is no accounting setup; otherwise provide GL info.
Accounting Set	Accounting value to assign when creating a cashbook/forecast. Used for inhouse banking only.
GL Account ID	Accounting value to assign when creating a cashbook/forecast. Used for inhouse banking only.
GL Prefix	Accounting value to assign when creating a cashbook/forecast. Used for inhouse banking only.
GL Ref 1-5	Accounting value to assign when creating a cashbook/forecast. Used for inhouse banking only.
User Defined Rules	Use the six user defined fields below to provide/assign additional information on cashbook/forecast.

Rule Creation

Creating an Individual Rule

To create an individual rule using an existing bank transaction, first find and select the bank transaction in the Bank Transaction Manager.

Select the transaction you wish to create a rule for and double click to load the transaction in detail screen.

Click on the Add Rule button on the left bar to bring up the Recon Rules Manager prepopulated with information from the Bank Transactions.

Certain fields are filled out using the source bank transaction. Further modify the rule info, match info and action info tabs so that the rule performs the desired clearing/matching actions.

Rule Creation Strategy

The following strategy can be used when creating new rules for many accounts:

Process one/more bank activity files. Optionally download output in Excel.
Customer reviews and forms groups of roughly related activity (by BAI/SWIFT type code, other, etc.).
Set up and test example rules using the front end Rules Mgr. using the built-in test function.
Customer continues to set up new rules via the front end or Excel as appropriate:

For 0-15 rules – use front end only
For 15+ – recommend Excel initially

Customer can gradually set up additional rules for new activity until goals for auto-matching are achieved.
Use same process to automate other banks.
Customer goals for all banks are met.

Using Description Fields for Rule Filtering

Bank transaction description fields often have useful information identifying what the transaction is for. This section provides examples on how to use the description fields in the rules setup to categorize transactions differently which otherwise are reported with the same BAI/SWIFT transaction type.

Description as reported on the BANK TRANSACTIONS	What to use on the rule description	Explanation
MERCHANT SVCS DES:MERCH DEP ID:33432 INDN:ABC ORG GOLF CO ID:23424242332 CCD	MERCHANT SVCS	In this example, the part of the text used to identify that this is a credit card type transaction is "MERCHANT SVCS". Retain only this text in the rule description. Other information like DEP ID or GOLF CO ID are not unique or relevant. Notice that in this example the identifying text (MERCHANT SVCS) appears at the beginning of the transaction.
TFR 2342433424 DOMESTIC WIRE FEES OUT WIRE FEE	WIRE FEE	In this example, the text used to identify a wire fee transaction is "WIRE FEE". User can use any part of the description in the rule except TFR 2342433424 because that information is unique to a particular transaction and is not likely to appear on subsequent BANK TRANSACTIONS.
TRAN DESC=Paid Check TRAN SEQ=24324342 TRAN DATE=20171106	Paid Check	This example is similar to the one above. It identifies a check being cleared. Additional information such as SEQ # or DATE cannot be used because it is not generic information that can be applied to similar transactions.

Additional notes: Using the above example "MERCHANT SVCS DES:MERCH DEP ID:33432 INDN:ABC ORG GOLF CO ID:23424242332 CCD"

1	Always use the phrases as provided on the BANK TRANSACTIONS description	MERCHANT SVCS	✓
2	Do not remove spaces in between the words: Do not change from MERCHANT SVCS to MERCHANTSVCS	MERCHANTSVCS	✗
3	Do not add additional symbols such as underscore between the words unless they were provided on the BANK TRANSACTIONS file	MERCHANT_SVCS	✗
4	While using the text phases in the rule, always remove additional spaces at the beginning or ending of the text	<space> MERCHANT SVCS <space>	✗

Advanced case using wild card: Please contact Trovata TMS support for additional training.

No.	Description as reported on the Bank Transactions	What to use on the rule description	Explanation
1.	FR:CUST WIRE TRANSFER ENDT:20160418 TRID:39983209 PY:IMPORT PAYMENT 891876450 28/01/2016 BI:DE70890700100056799937 BN:ABC COMPANY GMBH CO KG	IMPORT PAYMENT@AND@ABC COMPANY	Selects all bank transactions containing words "IMPORT PAYMENT" and "ABC COMPANY". Note: the bank transactions should contain both phrases and in that order for this to work.
2.	Example 1: FR:CUST WIRE TRANSFER ENDT:20160418 TRID:39983209 PY:IMPORT PAYMENT 891876450 28/01/2016 BI:DE70890700100056799937 BN:ABC COMPANY GMBH CO KG Example 2: FR:CUST WIRE TRANSFER ENDT:20160418 TRID:39983209 PY:IMPORT PMT 891876450 28/01/2016	(IMPORT PAYMENT@OR@IMPORT PMT)	Selects all bank transactions containing phrases "IMPORT PAYMENT" OR "IMPORT PMT". Note: Only one of the criteria needs to match for this to work.

Viewing a Rule Associated with a Bank Transaction or Cash Book

To view the rule applied to a certain transaction, click on the View Rule icon in the Bank Transaction Details Manager. This will display the rule name and details associated with the transaction, allowing users to review which clearing rule was triggered and what actions were performed.