I am trying to learn about governor limits in salesforce, specifically in the context of salesforce flows. Here is the context: I have written a flow that runs 'on insert' for a given object (contacts). Every time a new record is inserted, I am performing a check to see if there is an account record with a matching email address (custom field) as the email address on the contact. In essence, this is a lookup relationship, but is meant to automatically find the relationship. It then updates the new contact to associate the related account with it.
However, I am building this with the idea that a user will be uploading many (possibly thousands) of contact records with the data import wizard. I have concerns that I will reach governor limits in my flow for such a large import. However, when testing my flow after uploading a large file of test data contacts, I do not appear to hit any governor limits. The specific limit I am thinking of is where a transaction is limited to 150 DML statements. I understand that salesforce performs bulkification to combine limits for large transaction (like when uploading a lot of records) and that the governor limits apply to batches of 200 records. If this is the case, since every records in the batch of 200 is updating the contact, I would expect to have errors when uploading my large contact file (batched to 200 records, every records would contribute a limit to the 150 limit and it would fail before completing the first batch). However, I am not getting an error, so it appears that I don't understand something correctly, either how the bulkification / batching process works, or specifically regarding the DML governor limits.
Can anyone explain what I am missing here? Here is a snapshot of my flow for context. Please note that I am calling this flow from a simple flow that has the 'on insert' trigger. Thanks!