Related Party Matching
Related party matching describes the process of matching bank transactions to the corresponding business partners in Microsoft Dynamics 365 Business Central. This feature allows you to automatically link bank transactions to the corresponding customers and vendors, ensuring a more accurate and efficient bank account reconciliation.
Note
The features and steps described in this section relate to the matching of related parties in the context of bank account reconciliation and describe the features and additions provided by 365 business Banking to the Microsoft Dynamics 365 Business Central standard.
For more information on the Microsoft Dynamics 365 Business Central standard, see the official documentation from Microsoft.
The following extensions for related party matching are provided by 365 business Banking:
Sender identification via IBAN and account holder
Extended related party name matching
Definition of payment application fields for reference number matching
Sender Identification
In addition to the Microsoft standard, the IBAN and account holder of the bank account from the bank transaction are used for sender identification during payment reconciliation. This allows for more accurate allocation of transactions to the respective accounts and improves the efficiency of reconciliation.
If the reconciliation is accepted and the bank reconciliation is posted, the master data (e.g., customer bank account) of the reconciled accounts (e.g., customer, vendor) is updated or supplemented to enable faster and more accurate allocation in future reconciliations.
Note
Newly created bank accounts (e.g., customer bank account) are created with the status New. This means that the bank account has been newly added and has not yet been verified. Verification of the bank account is required to ensure that the bank account information is correct and can be used for future transactions. Once the bank account has been verified, the status is changed to Released.
Extended Related Party Name Matching
As part of payment reconciliation, bank transactions are matched to open entries based on the name match between the related party of the bank transaction and the open entries. To improve the matching, you can enable the Extended Related Party Name Matching option in the Payment Application Settings.
This feature uses an extended fuzzy logic for name matching that considers additional criteria to improve the match between the related party of the bank transaction and the open entries. This setting can be particularly useful when matching transactions with different spellings and naming conventions (e.g., Mueller GmbH instead of Müller GmbH, Doe, John instead of John Doe).
Good to know
The extended name matching is only applied when the standard name matching has not found a unique match. It is supplementary logic that helps improve the matching of bank transactions to open entries, particularly in cases where the name match is not perfect.
Payment Application Settings - Payment Application Fields
In some cases, business partners use additional reference numbers — such as a customer number — in the purpose of the bank transaction. This information can be used when matching bank transactions to the related party to improve the accuracy of the matching.
To do this, in the Payment Application Fields section of the Payment Application Settings, you can specify for the matching of customers and vendors the relevant fields (e.g., No.) that are used as reference numbers in bank transactions and should be considered in the matching.
By defining these fields, you can ensure that the reference numbers used by your business partners in the purpose of bank transactions are taken into account during matching. This can be particularly helpful in cases where the name match alone is not sufficient to enable a unique assignment.