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Setup

Payment application settings

This page describes the switches that 365 business Banking adds to the payment application settings and the matching in application that each switch affects.

The Payment Application Settings page belongs to Microsoft Dynamics 365 Business Central. 365 business Banking adds the switches for its own matching and the Payment Application Fields part there. You open the page via Search or in the Role Center under Setup.

Standard functionality in Business Central

The standard settings define which entry types automatic application considers (customer, vendor, employee and bank account ledger entries), which of them appear on the Payment Application page, whether suggestions are calculated for Apply Manually, whether apply-immediately rules apply and how related party names are compared. These settings continue to apply unchanged.

For more information, see Microsoft Learn: Review or apply payments after automatic application and Set up rules for automatic application of payments.

What 365 business Banking adds

Settings in detail

General Settings group

Field	Default	Effect	More
Enable Advanced Related Party Matching	off	compares names tolerantly (umlauts, punctuation, word order; 50 % rule) and additionally checks the account holder of customer and vendor bank accounts	Related party matching
Date Application Policy	blank	blank: as in the standard; Always: no date limit; Tolerance Period: only entries posted on or before the transaction date, or at most the period after it. If a policy is set, entries with the wrong sign are discarded.	Date tolerance
Date Application Tolerance	blank	the period as a date formula, such as 5D or 1W+2D; mandatory for Tolerance Period	Date tolerance

Ledger Entries Matching Settings group

Field	Default	Effect	More
Enable General Ledger Entries Matching	off	applies bank transactions to G/L entries under review (requires Review Entries, from BC 27).	G/L entry matching
Enable On-Account Matching	off	posts a payment on account to a customer or vendor uniquely recognized by IBAN, full name or the payment application fields when there is no other candidate	Customer/vendor matching
Enable Sales Document Matching	off	assigns incoming payments to open, released sales orders and invoices and creates preliminary entries	Application with open sales documents

Direct Matching Settings group

Field	Default	Effect	More
Enable Transaction ID Matching	off	applies lines of payment service provider accounts (Universal accounts count as such here) that carry a transaction ID directly to the one open customer ledger entry whose payment application field holds the same ID. The full scoring is skipped for that line.	Direct matching
Enable Direct Purpose Matching	off	searches the transaction text for a document reference, such as an invoice number, that identifies exactly one open customer ledger entry, and applies the line to that entry directly. This applies to bank accounts and payment service provider accounts alike.	Direct matching

Apply Automatically and Quick Apply both use direct matching. When a switch is off, Apply Automatically scores these lines like any other line, and Quick Apply applies its remaining rules to them.

Ledger Entries in "Apply Manually" page group

Field	Default	Effect	More
Show General Ledger Entries in "Apply Manually" page	on	from BC 27: shows G/L entries under review as candidates on the Payment Application page, independent of Enable General Ledger Entries Matching	G/L entry matching
Show Sales Documents in "Apply Manually" page	on	shows open, released sales documents as candidates on the Payment Application page, independent of Enable Sales Document Matching	Application with open sales documents

As in the standard, the more entries the Payment Application page has to load, the longer it takes to open. Turn off entry types you do not need there.

Remittance Advice & Deductions group

Field	Default	Effect	More
Enable Remittance Advice Matching	on	applies open remittance advices (from REMADV import and camt structured remittance) to matching bank transactions automatically, deductions included	Remittance advice setup (REMADV)
Default Deduction G/L Account No.	blank	G/L account for a deduction whose reason has no G/L account of its own	Remittance advice setup (REMADV)
Record Undocumented Difference as Deduction	off	posts an unexplained amount deviation on an applied document automatically as a deduction	Remittance advice setup (REMADV)
Undocumented Deduction Reason	43	reason used for that deduction	Remittance advice setup (REMADV)
Deduction Posting Text	default posting text	template for a deduction's posting text, with placeholders	Posting text with placeholders

The Deduction Reasons and REMADV Partners actions open the related master data pages.

Payment application fields

In the Payment Application Fields part, you define which fields of customer ledger entries, vendor ledger entries, customers, vendors and G/L entries application looks for in the payment reference. After installation, it contains Document No., External Document No. and Payment Reference for customer and vendor ledger entries. Application checks the fields in the order of their Priority. For more information, see Payment application fields.

See also

• How automatic application works
• Apply bank transactions
• Context words
• Banking Setup
• Remittance advice setup (REMADV)