Payment Reconciliation Creation Mode
Business Value
When bank transactions are retrieved, 365 business Banking places them in a payment reconciliation journal and by default re-uses any journal that is already open for the bank account. With a high transaction volume that journal keeps growing: transactions of several weeks end up in a single reconciliation, processing becomes hard to follow, and any blocking issue affects the entire backlog.
With the payment reconciliation creation mode you decide per bank account that transactions are distributed across separate journals per calendar day, calendar week or month instead. Reconciliations stay a manageable size and can be closed period by period.
Feature Description
The Pmt. Rec. Journal Creation field on the Bank Account card controls how payment reconciliation journals are created when bank transactions are retrieved:
| Value | Behavior |
|---|---|
| Default | Any journal that is already open for this bank account is re-used. If none exists, a new one is created. This is the previous behavior. |
| Daily | One journal is created and re-used per calendar day. |
| Weekly | One journal is created and re-used per calendar week. |
| Monthly | One journal is created and re-used per month. |
The period is determined by the bank posting date of the transaction – not by the time of retrieval. A transaction that is retrieved later therefore ends up in the journal of its own period, not in the current one.
The journal itself carries the mode that was used and the journal period start date, so the matching journal is found again on the next retrieval.
Good to know
The mode is set per bank account and is only available for bank accounts connected through 365 business Banking. There is no global setting – high-volume accounts can be run period by period while accounts with few transactions stay in Default mode.
Ending balance with period journals
In Default mode the journal takes the account balance reported by the bank as its statement ending balance. In the period modes the ending balance of the open period journals is instead calculated backwards from the most recent period, so that each journal shows the ending balance that matches its own period.
For more information about retrieving bank transactions, see Bank Account Reconciliation.