{"id":4179,"date":"2026-05-29T20:42:03","date_gmt":"2026-05-29T20:42:03","guid":{"rendered":"https:\/\/aaxonix.com\/resources\/?post_type=glossary&#038;p=4179"},"modified":"2026-05-29T20:42:03","modified_gmt":"2026-05-29T20:42:03","slug":"categorise-transaction-zoho-books","status":"publish","type":"glossary","link":"https:\/\/aaxonix.com\/resources\/glossary\/categorise-transaction-zoho-books\/","title":{"rendered":"Categorise Transaction"},"content":{"rendered":"<style>.gt-body{font-family:'Poppins',sans-serif;color:#111;line-height:1.75}.gt-def{border-left:4px solid #E8650A;padding:16px 20px;background:#fff8f4;border-radius:0 8px 8px 0;margin:0 0 32px;font-size:1.05rem}.gt-section{margin:0 0 36px}.gt-section h2{font-family:'Fraunces',serif;color:#0A1628;font-size:1.5rem;margin:0 0 12px}.gt-example-box{background:#f0f4ff;border-radius:10px;padding:20px 24px;margin:0 0 32px}.gt-example-box strong{color:#2563EB}.gt-related-pills{display:flex;flex-wrap:wrap;gap:10px;margin:0 0 32px}.gt-related-pill{background:#f7f4ef;border:1px solid #ddd8cf;border-radius:20px;padding:6px 16px;font-size:.875rem;color:#0A1628;text-decoration:none}.gt-faq-item{border:1px solid #ddd8cf;border-radius:10px;padding:16px 20px;margin:0 0 12px}<\/style>\n<div class=\"gt-body\">\n<div class=\"gt-def\">Categorising a transaction in Zoho Books is the process of assigning a bank feed entry to the correct account, customer invoice, vendor bill, or expense category so that all financial reports reflect the correct income, expense, and balance sheet figures.<\/div>\n<div class=\"gt-section\">\n<h2>How Categorisation Works in Zoho Books<\/h2>\n<p>When Zoho Books imports transactions via bank feed or statement import, each transaction initially appears as uncategorised. Zoho Books analyses the transaction description, amount, and date and suggests a match based on your existing records (open invoices, approved bills) or past categorisation patterns. If the suggestion is correct, you click Match or Accept. If not, you manually select the correct account or transaction.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>Categorisation Options<\/h2>\n<p>For each bank transaction, you can: match it to an existing open invoice (for incoming payments) or open bill (for outgoing payments), record it as a new expense (selecting the expense account and vendor), record it as a transfer to another bank account, or exclude it if it is a duplicate or a transaction that should not appear in your books. For transactions that do not relate to any business activity (such as a personal deposit), exclude them and handle them separately.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>Using Matching Rules to Speed Up Categorisation<\/h2>\n<p>Matching rules in Zoho Books automate categorisation for recurring transactions. For example, a monthly bank charge from HDFC always has the description &#8220;CHARGES&#8221; and is always for the same approximate amount. Create a matching rule that automatically categorises any transaction with &#8220;CHARGES&#8221; in the description to your &#8220;Bank Charges&#8221; expense account. The rule runs every time a new transaction is imported, eliminating manual categorisation for predictable entries.<\/p>\n<\/div>\n<div class=\"gt-example-box\"><strong>Industry:<\/strong> E-commerce \u2014 A Pune D2C brand has 30 to 50 bank transactions daily from Razorpay settlements, vendor payments, and platform fees. Matching rules handle 80% of them automatically. The accounts team reviews only the 6 to 10 transactions per day that do not match a rule, completing the daily categorisation in 10 minutes.<\/div>\n<div class=\"gt-related-pills\"><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/bank-feed-zoho-books\/\" class=\"gt-related-pill sp-content-link\">Bank Feed<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/matching-rule-zoho-books\/\" class=\"gt-related-pill sp-content-link\">Matching Rule<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/bank-reconciliation-zoho-books\/\" class=\"gt-related-pill sp-content-link\">Bank Reconciliation<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/expense-account-zoho-books\/\" class=\"gt-related-pill sp-content-link\">Expense Account<\/a><\/div>\n<div class=\"gt-faq-item\"><strong>What is Categorise Transaction in Zoho Books?<\/strong><\/p>\n<p>Categorising a transaction in Zoho Books means assigning a bank feed entry to the correct account, invoice, or bill so it is correctly reflected in your financial reports.<\/p>\n<\/div>\n<div class=\"gt-faq-item\"><strong>How do I categorise a bank transaction in Zoho Books?<\/strong><\/p>\n<p>Go to Banking, view the feed. For each uncategorised entry, click Match if the suggested match is correct, or click Categorise to manually select the account. You can also create a new expense or bill directly from the transaction.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Categorising a transaction in Zoho Books is the process of assigning a bank feed entry to the correct account, customer invoice, vendor\u2026<\/p>\n","protected":false},"template":"","meta":{"seo_title":"Categorise Transaction | Zoho Books Glossary","seo_description":"Categorising transactions in Zoho Books assigns bank feed entries to the correct accounts. Learn how to categorise efficiently using rules and suggestions.","seo_keyword":"categorise transaction zoho books","seo_faqs":"[{\"q\": \"What is Categorise Transaction in Zoho Books?\", \"a\": \"Categorising a transaction in Zoho Books means assigning a bank feed entry to the correct account, such as matching an incoming payment to a customer invoice or assigning an outgoing payment to a vendor bill or expense account, so it is correctly reflected in your financial reports.\"}, {\"q\": \"How do I categorise a bank transaction in Zoho Books?\", \"a\": \"Go to Banking, select the account, and view the feed. For each uncategorised transaction, Zoho Books suggests a match based on amount and date. Click Match if the suggestion is correct, or click Categorise to manually select the account, customer, or vendor. You can also create a new expense or bill directly from the transaction.\"}]","term_type":"Technical","glossary_related":"","glossary_links":""},"glossary_category":[1246],"class_list":["post-4179","glossary","type-glossary","status-publish","hentry","glossary_category-zoho-books"],"_links":{"self":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary\/4179","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/types\/glossary"}],"wp:attachment":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/media?parent=4179"}],"wp:term":[{"taxonomy":"glossary_category","embeddable":true,"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary_category?post=4179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}