When do bank rules apply in QuickBooks?

Bank rules in QuickBooks are primarily applied to transactions that are found in the "For Review" tab. This is where transactions imported from connected bank accounts await your review and categorization. By setting up bank rules, you can automate the categorization of these transactions based on predefined criteria, which helps streamline the bookkeeping process.

When transactions are in the "For Review" tab, they haven't yet been accepted into the accounting records, allowing bank rules to trigger and apply the specified actions (like categorization or assignment to certain accounts) before those transactions are finalized. Once transactions are accepted and included in the accounting records, bank rules do not apply.

Using bank rules increases efficiency, reducing the time spent manually categorizing each incoming transaction, especially in cases of high transaction volumes.