I have KMYMoney pretty much set up the way I want / need it to. And it really is a nice alternative to other applications out there, for me it is replacing Quicken, so that is the functionality I am most familiar with.

I set up all my scheduled transactions, and for some that vary in the amount each month, I have checked the box on the scheduled transaction to indicate that it is an estimate. The transaction is automatically entered into the ledger, and I download my transactions from various places. I try to merge the transactions after importing the downloaded ones and I am not able to because they do not match amounts.

In Quicken you would manually match the transactions prior to accepting them and it would prompt you to categorize the difference in the amounts. Not really sure how to perform that function in KMYMoney. And the way I am trying to merge the transactions above is not correct.

Anyone that can help me perform this correctly?

When everything is setup correctly, KMyMoney will do the entry of the scheduled transaction and matching automatically during the import.

The key to success seems to be the payee information. Based on that piece of information, KMyMoney searches for existing transactions and if none are found for due scheduled transactions. Please, take a look at the manual where the options for payee matching are explained.

Hope that helps, in case not, please keep asking.