‘Bank rules’ save you from manually creating a new transaction each time you get a recurring or similar type of bank statement line. You tell Xero how these statement lines should be coded and Xero will suggest the right type of transaction and complete some details for you. This saves you time, helps to reduce human error and ensures consistent coding, which leads to more efficient reporting.
Only set up bank rules to reconcile statement lines for which you won’t create a bill, invoice or other type of transaction. If a bank statement line relates to an existing transaction, use find and match to reconcile.
Xero help article https://central.xero.com/s/article/About-bank-rules#Typesofbankrules
Of you want to know more, contact our team.