diff --git a/erpnext/accounts/doctype/accounts_settings/accounts_settings.json b/erpnext/accounts/doctype/accounts_settings/accounts_settings.json
index ff07de3..05f1169 100644
--- a/erpnext/accounts/doctype/accounts_settings/accounts_settings.json
+++ b/erpnext/accounts/doctype/accounts_settings/accounts_settings.json
@@ -64,7 +64,8 @@
   "tab_break_dpet",
   "show_balance_in_coa",
   "banking_tab",
-  "enable_party_matching"
+  "enable_party_matching",
+  "enable_fuzzy_matching"
  ],
  "fields": [
   {
@@ -404,6 +405,14 @@
    "fieldname": "enable_party_matching",
    "fieldtype": "Check",
    "label": "Enable Automatic Party Matching"
+  },
+  {
+   "default": "0",
+   "depends_on": "enable_party_matching",
+   "description": "Approximately match the description/party name against parties",
+   "fieldname": "enable_fuzzy_matching",
+   "fieldtype": "Check",
+   "label": "Enable Fuzzy Matching"
   }
  ],
  "icon": "icon-cog",
@@ -411,7 +420,7 @@
  "index_web_pages_for_search": 1,
  "issingle": 1,
  "links": [],
- "modified": "2023-04-21 13:11:37.130743",
+ "modified": "2023-05-17 12:20:04.107641",
  "modified_by": "Administrator",
  "module": "Accounts",
  "name": "Accounts Settings",
diff --git a/erpnext/accounts/doctype/bank_transaction/auto_match_party.py b/erpnext/accounts/doctype/bank_transaction/auto_match_party.py
index 79d52c6..753f0c1 100644
--- a/erpnext/accounts/doctype/bank_transaction/auto_match_party.py
+++ b/erpnext/accounts/doctype/bank_transaction/auto_match_party.py
@@ -35,13 +35,15 @@
 		return self.__dict__.get(key, None)
 
 	def match(self) -> Union[Tuple, None]:
+		result = None
 		result = AutoMatchbyAccountIBAN(
 			bank_party_account_number=self.bank_party_account_number,
 			bank_party_iban=self.bank_party_iban,
 			deposit=self.deposit,
 		).match()
 
-		if not result:
+		fuzzy_matching_enabled = frappe.db.get_single_value("Accounts Settings", "enable_fuzzy_matching")
+		if not result and fuzzy_matching_enabled:
 			result = AutoMatchbyPartyDescription(
 				bank_party_name=self.bank_party_name, description=self.description, deposit=self.deposit
 			).match()
@@ -184,31 +186,66 @@
 		for party in parties:
 			name_field = party.lower() + "_name"
 			filters = {"status": "Active"} if party == "Employee" else {"disabled": 0}
-
 			names = frappe.get_all(party, filters=filters, pluck=name_field)
 
 			for field in ["bank_party_name", "description"]:
-				if not result and self.get(field):
-					result = self.fuzzy_search_and_return_result(party, names, field)
-					if result:
-						break
+				if not self.get(field):
+					continue
+
+				result, skip = self.fuzzy_search_and_return_result(party, names, field)
+				if result or skip:
+					break
+
+			if result or skip:
+				# We skip if:
+				# If it was hard to distinguish between close matches and so match is None
+				# OR if the right match was found
+				break
 
 		return result
 
 	def fuzzy_search_and_return_result(self, party, names, field) -> Union[Tuple, None]:
-		result = process.extractOne(query=self.get(field), choices=names, scorer=fuzz.token_set_ratio)
+		skip = False
 
-		if result:
-			party_name, score, index = result
-			if score > 75:
-				# Dont set description as a key in Bank Party Mapper due to its volatility
-				mapper = {"bank_party_name": self.get(field)} if field == "bank_party_name" else None
-				return (
-					party,
-					party_name,
-					mapper,
-				)
-			else:
-				return None
+		result = process.extract(query=self.get(field), choices=names, scorer=fuzz.token_set_ratio)
+		party_name, skip = self.process_fuzzy_result(result)
 
-		return result
+		if not party_name:
+			return None, skip
+
+		# Dont set description as a key in Bank Party Mapper due to its volatility
+		mapper = {"bank_party_name": self.get(field)} if field == "bank_party_name" else None
+		return (
+			party,
+			party_name,
+			mapper,
+		), skip
+
+	def process_fuzzy_result(self, result: Union[list, None]):
+		"""
+		If there are multiple valid close matches return None as result may be faulty.
+		Return the result only if one accurate match stands out.
+
+		Returns: Result, Skip (whether or not to continue matching)
+		"""
+		PARTY, SCORE, CUTOFF = 0, 1, 80
+
+		if not result or not len(result):
+			return None, False
+
+		first_result = result[0]
+
+		if len(result) == 1:
+			return (result[0][PARTY] if first_result[SCORE] > CUTOFF else None), True
+
+		second_result = result[1]
+
+		if first_result[SCORE] > CUTOFF:
+			# If multiple matches with the same score, return None but discontinue matching
+			# Matches were found but were too closes to distinguish between
+			if first_result[SCORE] == second_result[SCORE]:
+				return None, True
+
+			return first_result[PARTY], True
+		else:
+			return None, False
diff --git a/erpnext/accounts/doctype/bank_transaction/bank_transaction.json b/erpnext/accounts/doctype/bank_transaction/bank_transaction.json
index d3dc5b5..e7de71a 100644
--- a/erpnext/accounts/doctype/bank_transaction/bank_transaction.json
+++ b/erpnext/accounts/doctype/bank_transaction/bank_transaction.json
@@ -68,7 +68,7 @@
    "fieldtype": "Select",
    "in_standard_filter": 1,
    "label": "Status",
-   "options": "\nPending\nSettled\nUnreconciled\nReconciled"
+   "options": "\nPending\nSettled\nUnreconciled\nReconciled\nCancelled"
   },
   {
    "fieldname": "bank_account",
@@ -238,7 +238,7 @@
  ],
  "is_submittable": 1,
  "links": [],
- "modified": "2023-04-04 15:47:20.620006",
+ "modified": "2023-05-17 14:56:10.547480",
  "modified_by": "Administrator",
  "module": "Accounts",
  "name": "Bank Transaction",
diff --git a/erpnext/accounts/doctype/bank_transaction/test_auto_match_party.py b/erpnext/accounts/doctype/bank_transaction/test_auto_match_party.py
index 2f94516..8c6dc9d 100644
--- a/erpnext/accounts/doctype/bank_transaction/test_auto_match_party.py
+++ b/erpnext/accounts/doctype/bank_transaction/test_auto_match_party.py
@@ -13,11 +13,13 @@
 	def setUpClass(cls):
 		create_bank_account()
 		frappe.db.set_single_value("Accounts Settings", "enable_party_matching", 1)
+		frappe.db.set_single_value("Accounts Settings", "enable_fuzzy_matching", 1)
 		return super().setUpClass()
 
 	@classmethod
 	def tearDownClass(cls):
 		frappe.db.set_single_value("Accounts Settings", "enable_party_matching", 0)
+		frappe.db.set_single_value("Accounts Settings", "enable_fuzzy_matching", 0)
 
 	def test_match_by_account_number(self):
 		"""Test if transaction matches with existing (Bank Party Mapper) or new match."""
@@ -145,6 +147,22 @@
 		self.assertEqual(bank_party_mapper.bank_party_name, "Amazn Co.")
 		self.assertEqual(doc_2.party, "Amazon")
 
+	def test_skip_match_if_multiple_close_results(self):
+		create_supplier_for_match(supplier_name="Adithya Medical & General Stores")
+		create_supplier_for_match(supplier_name="Adithya Medical And General Stores")
+
+		doc = create_bank_transaction(
+			description="Paracetamol Consignment, SINV-0009",
+			withdrawal=24.85,
+			transaction_id="3a1da4ee2dc5a980138d56ef3460cbd9",
+			party_name="Adithya Medical & General",
+		)
+
+		# Mapping is skipped as both Supplier names have the same match score
+		self.assertEqual(doc.party_type, None)
+		self.assertEqual(doc.party, None)
+		self.assertFalse(doc.bank_party_mapper)
+
 
 def create_supplier_for_match(supplier_name="John Doe & Co.", iban=None, account_no=None):
 	if frappe.db.exists("Supplier", {"supplier_name": supplier_name}):