Incoming Payments and Bank Reconciliation

Reverse a posted payment reconciliation

How to reverse a posted payment reconciliation completely with 365 business Banking and get the bank transactions back for a new reconciliation.

If a payment reconciliation was posted incorrectly, for example a payment to the wrong customer, you reverse it and reconcile again. For that, the bank transaction must be transferred to the payment reconciliation journal again. Business Central prevents this, however: a transaction that has been posted counts as reconciled permanently, so that it is not posted twice. 365 business Banking releases the transaction again, but only once the earlier posting has verifiably been reversed.

Standard functionality in Business Central

The Reverse action on Posted Payment Reconciliations starts a wizard: it undoes the bank statement, unapplies the customer, vendor and employee ledger entries the journal created, and reverses them. With their transaction, the bank account ledger entries and G/L entries of the same posting are reversed as well. On request, the wizard creates a new payment reconciliation journal with the lines. For more information from Microsoft, see Reverse journal postings.

What 365 business Banking adds

Complete reversal: 365 business Banking afterwards also reverses postings that the wizard does not find: the payment of a line applied only to a G/L account, and the transfer from the transit account. Payments assigned to open sales documents are also handed to the wizard for reversal.
Release of the bank transaction as soon as its posting is reversed, depending on the bank connection also at the service.
Preliminary entries from application with open sales documents that are based on the reversed payment are closed.
Remittance advices: a remittance advice that was settled with the reversed payment is open again after the reversal, together with its preliminary entries, and waits for the next payment. The reference to the bank statement on the advice is cleared.
Protection against double posting: a transaction whose posting still exists can neither be released nor posted again.

Reverse

Choose Posted Payment Reconciliations in the Microsoft Dynamics 365 Business Central search.
Open the reconciliation to reverse.
Choose the Reverse action and follow the wizard.
After the wizard, 365 business Banking reverses the remaining postings, releases the bank transactions of the reversed postings and closes preliminary entries based on the reversed payment.
Transfer the bank transactions back into the payment reconciliation journal (the procedure depends on the bank connection, see below), and reconcile them correctly.

Entries deselected in the wizard are not reversed

In the wizard, you can exclude individual entries from the reversal. 365 business Banking does not reverse a posting excluded in this way either. Its bank transaction remains blocked.

Application with open sales documents

If a payment was applied to a sales order or sales invoice not yet posted, this creates an on-account payment of the customer and a preliminary entry. Both are included in the reversal: the on-account payment is unapplied and reversed, the preliminary entry is closed and no longer applies an invoice later. See Application with open sales documents.

Retrieve the transaction again per bank connection

A transaction is released as soon as the posting of its bank account ledger entry is reversed, whether through the wizard, through Reset Transaction or through a manual reversal in the G/L or bank account ledger entries. How it is transferred to the journal again depends on how the bank account retrieves its transactions:

Bank connection	What the release does	What you do afterwards
PSD2/XS2A via finAPI	365 business Banking reports the transaction to finAPI as new again.	Choose Retrieve Bank Transactions. The transaction is transferred with the next retrieval. In sandbox environments, finAPI is not notified, because the status may be shared with other environments there.
EBICS	The transaction no longer counts as known in Business Central. However, the bank delivers a statement only once; a new retrieval does not transfer the transaction again.	In the notification that appears after the reversal, choose Read statements again. Business Central then reads only the released transactions from the kept statements. Alternatively, open the EBICS Jobs, select the retrieval that transferred the statement, and then choose Read Statement Again. See Retrieve bank statements via EBICS.
camt file	The transaction no longer counts as known in Business Central.	Import the camt file again, see Import a bank statement as a camt file.

In all cases, transactions that are already in the journal or still posted are recognized by the retrieval or import and not created again. Only the released transactions are added.

Release a transaction afterwards

If a bank transaction is needed again independently of a reversal through the wizard, for example because you reversed the payment directly in the entries, release it manually:

Open the Posted Payment Reconciliation.
Select the transactions concerned in the lines.
Choose the Reset Transaction action.
A confirmation shows how many transactions were released for re-import.
Get the transactions back as described above.

Only after a complete reversal

A transaction is only released if the posting of its bank account ledger entry is reversed. If it still exists, the action stops: "The posting of … of the selected bank transaction(s) has not been reversed. Reverse the posted payment reconciliation, or reverse the bank account ledger entry of the payment, before you release the transaction." This check prevents the same payment from being posted a second time.

Only transactions of bank accounts connected through 365 business Banking can be released. For other bank accounts, the action reports "There are no banking transactions in the selection that can be released for re-import." Whether a line is released is shown by the Is Reversed field in the lines of the posted payment reconciliation. The field is hidden by default.

Troubleshooting

Message or observation	Cause and remedy
"The posting of … of the selected bank transaction(s) has not been reversed. …"	The posting still exists. Reverse the reconciliation or the bank account ledger entry first.
"There are no banking transactions in the selection that can be released for re-import."	The bank account is not connected through 365 business Banking.
"The bank transaction of the line with transaction date … has already been posted, and that posting has not been reversed. …"	You are trying to post a line whose earlier posting still exists. Reverse it first.
After the reversal, no transactions are transferred again with EBICS	EBICS delivers a statement only once. Use Read statements again in the notification or Read Statement Again in the EBICS Jobs.
After the reversal, no transactions are transferred again with PSD2/XS2A in a sandbox	In sandbox environments, finAPI is not notified.