Bank Account Reconciliation

With 365 business Banking, you can retrieve bank transactions and use them in the payment reconciliation in Microsoft Dynamics 365 Business Central. This enables efficient management of your bank accounts and seamless integration into your financial processes.

Good to know

Retrieving bank transactions does not involve fetching account statements; instead, transactions are retrieved directly from the bank. This allows for faster and more accurate processing of your financial data, with additional information about the transactions that may not be included in account statements.

Prerequisites

To retrieve bank transactions, you must first set up a banking user in Microsoft Dynamics 365 Business Central. This user is used to connect to your bank and has access to the banking features. Additionally, a connection to your bank or banks must be established. For more information, see the Step-by-Step Guide to Bank Account Connection.

Step-by-Step Guide

Follow these steps to retrieve bank transactions in 365 business Banking:

Select Payment Reconciliation Journals in the search bar of Microsoft Dynamics 365 Business Central.
Select the action Retrieve Bank Transactions.
Select the bank account for which you want to retrieve transactions.
Select OK to start retrieving bank transactions.
Confirm the message that the bank transactions have been retrieved.

Good to know

The import of bank transactions automatically checks for duplicate transactions and ignores them. This ensures that your payment reconciliation is always up-to-date and accurate.

Splitting Bank Transaction Lines

In some cases, it may be necessary to split bank transaction lines to allocate them to multiple general ledger accounts. This can be the case, for example, with direct debits from the tax authority, where multiple taxes are included in a single transaction.

Good to know

Bank transaction lines can also be automatically split using Bank Transaction Split Rules. These rules are applied when retrieving bank transactions and help to optimize and automate the payment reconciliation process.

Splitting Bank Transaction Lines

Follow these steps to split bank transaction lines:

Select the bank transaction line you want to split.
Select the action Split Lines in the Line group.
Split the bank transaction line into multiple lines by adjusting the respective amounts and, if necessary, changing the transaction text.
Select OK to save the changes.

Info

You can undo the splitting of bank transaction lines using the Undo Split Line action. This restores the original state of the bank transaction lines.

Payment Reconciliation

After retrieving bank transactions, you can use them in payment reconciliation. The bank transactions are automatically matched to the open entries in Microsoft Dynamics 365 Business Central to enable efficient reconciliation. The Microsoft Dynamics 365 Business Central bank reconciliation (see Managing and Reconciling Your Bank Accounts) is used and enhanced with additional features to achieve better results when matching bank transactions.

Payment reconciliation essentially consists of three steps, which can result in an automatic matching of bank transactions to open entries:

Related Party Matching
Bank transactions are automatically matched to the related party (e.g., customer, vendor) to improve the allocation to open entries.
Document No. Matching
The document numbers in the purpose of the bank transaction are analyzed and compared with the document numbers of the open entries to improve the allocation.
Amount Matching
The amounts of the bank transactions are compared with the amounts of the open entries to improve the allocation.

In addition to the Microsoft standard, 365 business Banking performs further steps during payment reconciliation to more accurately identify the related party of the bank transaction.

For more information on related party matching, see the documentation on Related Party Matching.

Document No. Matching

In addition to matching the related party, 365 business Banking also analyzes the document number in the purpose of the bank transaction during payment reconciliation to improve the allocation to open entries. Partial document numbers are also considered to allow for more accurate allocation in batch payments.

For more information on document number matching, see the documentation on Document No. Matching.

Payment Code Mapping

As part of a SEPA payment, additional payment codes are transmitted alongside the purpose, which are used to identify the payment. These codes can be used during payment reconciliation to improve the allocation of bank transactions to open entries or general ledger accounts.

The following payment codes are supported:

ZKA Code: The ZKA code, also known as the business transaction code, is used to identify the business transaction of the bank transaction. This code is usually provided by the bank and can be used to identify the type of transaction. For more information, see ZKA Code.
SEPA Purpose Code: The SEPA purpose code is used to identify the purpose of the SEPA transfer. This code is optional and can be used to specify the purpose of the payment. For more information, see SEPA Purpose Code.

On the Payment Code Mapping page, you can map payment codes to account type and account number. This allows for more accurate allocation of bank transactions to the respective accounts and improves the efficiency of reconciliation.

For more information, see the documentation on Payment Code Mapping.

As part of the automatic reconciliation of bank transactions, the payment code mapping is automatically considered. If a payment code is mapped, it is used when allocating the bank transaction to open entries or general ledger accounts. This improves the efficiency of reconciliation and reduces the manual effort required for allocating bank transactions.

Payment Code Mapping in Payment Reconciliation Journal

Date Application Policy

The date application policy defines the rules by which bank transactions are matched based on the date. The following options are available:

Always
Bank transactions are matched regardless of the posting date of the entry.
Tolerance Period
Bank transactions are only matched to entries that fall within a defined period after the date of the bank transaction.

If no selection is made, the date application policy is disabled and no matches are suggested for bank transactions where the entry date is after the bank transaction date.

Date Application Policy

Tolerance Period

The tolerance period allows you to define a time frame within which bank transactions can be matched to open entries. This is particularly useful for accounting for transactions that may be posted with a certain time delay.

The tolerance period is specified as a date formula (e.g., 7D), which indicates how many days after the date of the bank transaction entries should be considered for matching.

Bank Account Reconciliation

Good to know

Prerequisites

Step-by-Step Guide

Follow these steps to retrieve bank transactions in 365 business Banking:

Select Payment Reconciliation Journals in the search bar of Microsoft Dynamics 365 Business Central.
Select the action Retrieve Bank Transactions.
Select the bank account for which you want to retrieve transactions.
Select OK to start retrieving bank transactions.
Confirm the message that the bank transactions have been retrieved.

Good to know

The import of bank transactions automatically checks for duplicate transactions and ignores them. This ensures that your payment reconciliation is always up-to-date and accurate.