How do you set up bank rules to automatically categorize downloaded bank transactions?

• A. In the Banking tab, create a rule with conditions (description, amount), choose a Category/Account, and specify whether to add or modify transactions automatically.
• B. In the Invoicing tab, create rules for customers' payment terms.
• C. In the Reports tab, set up a rule to categorize by date.
• D. In the Capital tab, enable automatic reconciliation.

Answer: (A)

Bank rules in QuickBooks Online automate the categorization of downloaded bank transactions by letting you define criteria that map to a specific Category/Account and decide what action to take. You set up the rule in the Banking area, creating conditions such as the transaction description or amount. Then you choose the target account for the categorization and specify whether matching transactions should be added automatically or used to modify existing ones. This keeps bank feeds consistently organized without manual entry. The other tabs handle different tasks—Invoicing is for customer payments, Reports is for analyzing data, and Capital isn’t used for setting up bank rules.