The purpose of the Transaction matching screen is to make sure that a portfolio’s value is accurate for every day within a period. It does this by making it very simple to find and resolve unmatched transactions in a single screen.
Transaction matching is designed to save you significant time when resolving exceptions and once-off scenarios.
What are unmatched transactions?
Transactions for an investment portfolio can be divided into two broad categories:
- Client-driven or external movements: this is when capital exits or enters the portfolio. For example, a client withdraws cash or transfers securities in.
- Investment-related transactions or internal movements: these are movements within the portfolio between any of its investments (income or trades), cash books and receivables or payables.
Keeping track of these transactions can be complex but this is where V-Wrap’s transaction matching features come into play.
For investment-related transactions, V-Wrap employs a form of double-entry bookkeeping to ensure your portfolios are balanced. These internal movements must be accounted for and matched according to their dates, amounts and transaction types. If not, we have what are referred to as ‘unmatched transactions’ and the portfolio will be out of balance.
Why do we care? Because if your portfolio is out of balance, then your client’s portfolio value and performance figures will not be accurate.
Automated Transaction Matching
To help ensure your portfolio is balanced, V-Wrap uses a rules engine to automatically match the majority of your investment-related transactions. This only works if the portfolio’s income is paid to and trades are settled using cash accounts that are recorded in a V-Wrap cash book.