Creating a bank rule in Pandle enables you to automatically categorise and assign tax codes to your draft transactions, which match the rule conditions you have selected.
Once your bank rule has been created you will also have the option to 'auto confirm' any transactions which your bank rule applies to.
Bank rules will only apply to draft transactions which have been entered into Pandle from from a bank feed or file import, they will not apply to transactions entered manually.
To learn more about entering bank transactions using a bank feed click here.
To learn more about entering bank transactions using a file import click here.
How to create a bank rule in Pandle
Click Banking in the navigation menu, and select 'Bank Rules'.
This will take you to the Bank Rules tab, where you can view your existing Bank Rules, or click 'New Rule'.
Pandle will then pull information from this transaction into the rule conditions which you will use to create your New Bank Rule, as seen below:
You will need to enter a Name and Description for your Bank Rule. We recommend making your description as informative as possible so you can identify it more easily in the future.
You can choose to edit any part of your rule conditions to ensure they apply to any similar transactions that you wish to automatically categorise and assign a tax code to.
In this example the Description describes purchasing petrol; '5700 04NOV18 C SAINSBURYS PETROL UPTON GB - POS':
But as the Description includes a date which will not be relevant for all future petrol purchases from this station, we can change the Rule conditions to only include the keyword 'PETROL'. That way we can remove the condition which deals with the amount, so that the Bank Rule will apply to any petrol purchases no matter the transaction value.
If you are creating a Bank Rule for Recurring Transactions, then you can leave the amount condition because Pandle will populate it so that the Bank Rule will always apply to recurring transactions of the same value.
You will also notice that Pandle will automatically populate the Bank account for your draft transactions, and assign the transaction with a tax code (which is based on your previous selections for transactions of this type), as seen below:
You will then need to select the category that you want the Bank Rule to assign to this transaction, and any future transactions which meet the rule conditions. In this example, the category will be 'Travel and Subsistence'.
Using this same example, the Bank Rule you have just created would be as follows:
'If description includes 'PETROL' in NatWest bank account then assign to the Travel and Subsistence category and the Standard VAT tax code.'
Once you are happy with your rule conditions, bank account, and which category and tax codes will be assigned to these transactions, click the 'Apply This Rule' button to create your Bank Rule.
You also have the option to 'auto confirm' transactions which this Bank Rule applies to. This enables Pandle to automatically confirm these transactions for you, although you can still check through them later on the Bank Entries tab of your Imported Transactions screen.
To minimise mistakes, Pandle will hide the option to select a tax code when you are creating and editing banks rules for customer receipts, if your previously VAT-registered business is no longer covered by a VAT scheme.
Pandle will also hide the tax code when you are entering transactions linked to an invoice, just to avoid any confusion.
Where to view, edit and create new bank rules
After you have created your Bank Rule you will be able to view and edit them from Bank Rules summary page. You can also add new rules from here by clicking the 'New Rule' button:
When creating a new Bank Rule from scratch you will be required to set your own rule conditions to control which of your draft transactions will be automatically categorised and assigned a tax code by your Bank Rule.
When selecting your rule conditions there are three initial options for you to choose from to begin creating your Bank Rule:
You can see these in the image below:
Your initial selection will then provide different options for the second part of your rule condition. For example if you selected Money In or Money Out you will then be able choose between the following four options to continue constructing your bank rule:
Not equal to
You can these in the image below:
However if you selected Description for the first part of your rule condition you will then be able to choose between the following three options:
Not equal to
You can these in the image below:
For example if you wanted to set up a New Bank Rule for all of your train tickets purchased from Trainline you would select Description - Includes - trainline.
After you have set up your rule conditions to control which transactions this Bank Rule will apply to you then need to select which Bank Account these transactions will appear in, followed by the category and tax code you want assigned to these transactions.
Using this same example we would select our main business bank account 'Natwest', followed by the Travel and Subsistence category and Non VATable tax code (as train tickets are zero rated).
Using this same example the Bank Rule you have just created would be as follows:
'If description includes 'trainline' in Natwest bank account then assign to the Travel and Subsistence category and the VAT exempt or zero-rated tax code.'
Once you are happy with your rule conditions, bank account and which category and tax codes will be assigned to these transactions click the 'Apply This Rule' button to create your Bank Rule.
You will again have the option to 'auto confirm' the transactions which this bank rule applies to, enabling Pandle to automatically confirm these transactions for you.
How do I know which Bank Rule was used to confirm a transaction?
Select ‘View Transactions’ from the Accounting menu.
To see which transactions have been auto-confirmed by a bank rule, just click the ‘More Actions’ button next to a transaction. If a bank rule was used, the pop-up menu box will confirm which one it was.
To make any changes to the rule, click the rule name (like the example above), and Pandle will take you to the editing screen for that particular rule.