Account Receivables Outstanding

You are asking about the process of matching, merging, and clearing when receiving funds from invoices using FedNow and RTP (Real-Time Payments). These processes typically involve reconciling payments in your accounting or financial system. Here's a general guide on how you might handle these tasks:

1. Matching:

• Purpose: To identify and match received payments to the corresponding invoices.
• Steps:

1. Invoice Generation: Create and send invoices to customers through your accounting system.
2. Payment Receipt: When a payment is received, record it in your financial system.
3. Matching: Use the MATCH function in Excel or a similar feature in your accounting software to match received payments with the corresponding invoices. Matching can be based on invoice numbers, customer names, or other identifiers.

2. Merging:

• Purpose: Combining information from multiple sources, such as different payment methods or platforms.
• Steps:

1. Data Collection: Collect payment data from various sources, including FedNow, RTP, and other payment methods.
2. Normalization: Ensure that data from different sources is in a consistent format.
3. Merging: Use the MERGE function in Excel or merge tools in your accounting software to combine payment data from different sources into a unified view.

3. Cleared Transactions:

• Purpose: Marking transactions as cleared once they have been reconciled and verified.
• Steps:

1. Reconciliation: Compare your bank statements or transaction reports with your accounting records.
2. Clearing Process: Use a "Cleared" status or flag in your accounting software to indicate that a transaction has been reconciled and verified.
3. Documentation: Keep records of cleared transactions for auditing and reference purposes.

4. Specifics for FedNow and RTP:

• Integration: If possible, integrate your accounting software with FedNow and RTP to streamline the process. Some accounting systems offer direct connections or APIs for real-time data updates.
• Data Formats: Ensure that data received from FedNow and RTP is in a compatible format with your accounting system. You may need to convert or map data fields for seamless integration.
• Automation: Explore automation features in your accounting software to reduce manual efforts in matching, merging, and clearing transactions.

5. Regular Reconciliation:

• Frequency: Perform regular reconciliations to ensure that your financial records accurately reflect the transactions from FedNow, RTP, and other sources.

Remember, the specific steps and features may vary depending on the accounting software you are using. Always refer to the documentation provided by your accounting software for detailed instructions on matching, merging, and clearing transactions. Additionally, stay informed about updates and new features that may enhance your reconciliation processes.