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Account matching (also called payment reconciliation, or lettrage comptable in French) means linking, in the customer and supplier accounts, each payment to the invoice it settles. Matched entries share the same code (a letter). A matched invoice is settled; an unmatched one is still to be paid or reconciled. Matching shows, at any moment, what is really owed.
Key takeaways
- Account matching applies to third-party accounts: customers (411) and suppliers (401).
- It can be full or partial, manual or automatic.
- It makes dunning, cash management and audits more reliable, and complements bank reconciliation.
What is account matching?
Account matching is the process of pairing up accounting entries, mainly in third-party accounts. Take a simple example:
- A company sells a product for €1,000 including VAT and records the invoice as a debit on the customer account.
- A few days later, it receives a €1,000 transfer from that customer, recorded as a credit on the same account.
- It matches the two entries with the same code, say “A”: the invoice is settled.
If an invoice is left without a letter, it has not been paid in full, or a payment has come in and nobody knows which invoice it settles.
The different types of account matching
| Type | How it works | Example |
|---|---|---|
| Full matching | The payment settles one or more invoices exactly | A €1,000 transfer for a €1,000 invoice |
| Partial matching | The payment covers only part of the invoice | A €300 deposit on a €1,000 invoice |
| Automatic matching | The software pairs entries whose amounts, dates and references agree | Invoice reference quoted in the transfer description |
| Manual matching | A person decides the ambiguous cases | Rounding differences, grouped payment, discount deducted |
Why is account matching essential?
- A clear view of receivables and payables. You know which invoices are paid, partly paid or overdue, instead of a single overall balance per third party.
- More effective collections. Reminders go out at the right time, and never to a customer who has already paid.
- More reliable accounts. Duplicates, misallocations and anomalies show up immediately.
- Better cash management. An up-to-date receivables ledger shortens payment times and working capital requirements.
- Lower fraud risk. Unsupported flows stand out, which limits internal wrongdoing.
- A smoother close and audit. Auditors rely on matched third-party accounts to validate balances.
Account matching vs bank reconciliation: what is the difference?
| Criterion | Account matching | Bank reconciliation |
|---|---|---|
| What is compared | Invoices and payments for the same third party | The accounts and the bank statement |
| Accounts concerned | Customer (411) and supplier (401) accounts | Bank account (512) |
| Question answered | Has this invoice been paid? | Has this movement been recorded correctly? |
| Result | List of open invoices by third party | Reconciliation statement and true balance |
The two checks complement each other: bank reconciliation confirms that the money has reached the account, while account matching tells you which invoice it settles.
How do you match your accounts well?
- Require a payment reference. Ask your customers to quote the invoice number in the transfer description.
- Match as you go. Matching weekly avoids a pile-up of ambiguous cases at month-end.
- Deal with differences straight away. Discounts, bank charges, rounding: post the difference entries and match.
- Monitor unmatched accounts. Old unmatched entries point to a dispute, an oversight or an error.
- Automate the simple cases. Keep manual work for the situations that justify it.
Good to know. An unmatched customer account can show a correct but misleading balance: an unpaid €5,000 invoice can be masked by an overpayment of the same amount on another invoice.
Automate your account matchingThe E-Finances payment reconciliation solution matches payments to invoices according to your rules.
Discover the solutionFrequently asked questions about account matching
What is the difference between account matching and bank reconciliation?
Account matching links each payment to its invoice in the customer and supplier accounts. Bank reconciliation compares the accounts with the bank statement. The first tells you which invoice has been paid, the second that the bank movement has been recorded correctly.
Which accounts need to be matched?
Mainly the customer (411) and supplier (401) accounts. Some suspense or sundry third-party accounts can also be matched to justify their balance.
Can account matching be automated?
Yes. Matching software automatically pairs entries whose amounts, dates and references agree, and leaves the accountant to deal with differences and grouped payments.
- Autorité des normes comptables — French general chart of accounts (in French)
- economie.gouv.fr — practical guides from the French Ministry of the Economy for businesses (in French)
Director of Sales at E-Finances, a French financial software publisher for more than 25 years.
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