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What is a hidden transaction?

Published in Bank Reconciliation 3 mins read

A hidden transaction refers to a financial record in accounting software, such as those integrated with bank feeds, that does not appear in the primary bank feeds window and cannot be deleted, only concealed.

Understanding Hidden Transactions

In modern accounting and financial management software, particularly systems that integrate with bank feeds, a "hidden transaction" is a specific type of record that has been deliberately removed from the primary view. Unlike typical transactions that you might categorize, match, or reconcile, hidden transactions are treated differently because they don't require further action within the bank feeds interface.

The primary characteristic of a hidden transaction is its absence from the main bank feeds window. This means these entries are no longer actively displayed for review or processing. Importantly, hidden transactions cannot be permanently deleted from the system; instead, they are merely concealed from view. This functionality helps users maintain a clean and focused bank feeds window, showing only the transactions that still require attention.

Why Transactions Are Hidden

Transactions are typically hidden when they are no longer relevant for the ongoing bank feed reconciliation process. This often occurs for specific types of entries that have already been handled through other means or are considered redundant within the bank feed context.

Common scenarios where you might hide a transaction include:

  • Residual Entries from Initial Setup: When first setting up bank feeds, you might import historical transactions that have already been manually entered into the accounting system and fully reconciled prior to the bank feed integration. These older, already processed entries can clutter the bank feeds window.
  • Manually Entered and Already Reconciled Transactions: If you have manually recorded a transaction directly into your accounting software and subsequently reconciled it with a bank statement, and then that same transaction appears in your bank feed, it creates a duplicate. Hiding the bank feed entry prevents it from being processed again or causing reconciliation discrepancies.

Characteristics of Hidden Transactions

Characteristic Description
Visibility Do not appear in the main bank feeds window, reducing clutter.
Deletion Cannot be permanently deleted from the system; they can only be hidden (concealed).
Purpose Used to clear redundant or already processed transactions from the active bank feed view.
Management Helps maintain a streamlined workflow by focusing only on transactions requiring immediate action.

Practical Implications

Hiding transactions is a crucial feature for efficient bank reconciliation. It allows businesses to:

  • Improve Clarity: By removing irrelevant entries, the bank feeds window becomes clearer, making it easier to identify and process new and unmatched transactions.
  • Prevent Duplication: It ensures that transactions already accounted for, either manually or from a prior setup, are not inadvertently processed again.
  • Streamline Workflow: Users can work more efficiently without having to scroll through or manually disregard numerous outdated or already-handled entries.

Understanding how to manage and hide transactions is key to maintaining accurate and up-to-date financial records, especially for businesses leveraging automated bank feeds in their accounting software. For more details on managing banking transactions, you can refer to resources on bank reconciliation and transaction processing within financial software platforms, such as those provided by MYOB.