Sender Identification in Reconciliation

Sender identification in 365 business Banking matches payments by the sender's IBAN or name when the payment reference contains no document number.

Business Value

In standard Microsoft Dynamics 365 Business Central, the payer of a bank transaction is recognized by the name on the bank statement, and open entries are matched mainly by document numbers in the payment reference. When such a reference is missing, for example in bulk transfers or payments without a structured payment reference, or when the name is spelled differently, automatic matching often finds no match. In this case, sender identification recognizes the payer by characteristics that are more reliable than the name.

Feature Description

365 business Banking extends automatic matching in the Payment Reconciliation Journal with sender identification:

• If the counterparty's IBAN is stored on a customer or vendor bank account, the payer counts as recognized.
• If a customer or vendor field set up in the Payment Application Fields, such as the customer number, is in the payment reference, the payer counts as recognized as well.
• With Enable Advanced Related Party Matching, similar names and the account holder of a customer or vendor bank account are also considered.

This increases the hit rate for automatic matching, especially when no structured payment reference is present.

For more information on sender identification, see the article Related Party Matching.