Dynamics 365 Business Central: Bank Payment Reconciliation

Dynamics 365 Business Central: Bank Payment Reconciliation

Hey everyone. So we're going to keep going. Today, I just want to highlight one topic, which is bank reconciliations, but we're not going to get into bank reconciliations, formal. We're going to get into a piece that's like an in-between, that was introduced a while back. And I want to highlight it again because it's pretty cool.

So basically, I mean, we have obviously the bank, which is collecting transactions and then you have bank recs. You will have multiple of those with the statements. But as you're going through your bank account reconciliations, which are usually monthly, when you get the statement from the bank, you might want to reconcile the bank more than just one monthly.

And what do you do? You can of course run bank reconciliations many, many times, but those are supposed to match with the statement, which comes out monthly. So there's something else which is bank payment reconciliations. And bank payment reconciliations, they will basically just take in, for the day, whatever happened and you can match that out. And it's just a journal. It's just lines. You import from the online bank or you import the statement from the bank for that day. It populates the lines.

Let's say, it's a check, was deposited from a customer for $1,000, a particular document, AB3 or whatever. And then it tries to match it up automatically that it exists in the system. So it closes out that particular $1,000 automatically. All you have to do is verify that, post that and post it through. So it's a nice rhythm thing that you do every day. And then ultimately, when you've been doing that all month, when you run the bank reconciliation, formal, everything should really be already matched, except maybe a couple of things that come on the statement. So let's take a look at that again. I highly recommend starting to use that on a daily basis.

Okay. So let's take a look at the system. If I go into bank accounts, I have two banks in the demo database. This is the Cronus USA that you will get. And I go into checking. So this is a checking account set up with a few transactions. The demo database is pretty international. So like connecting it to the US banks is not going to be as available as if you set up a US tenant, that's in the cloud.

But we're going to take a look at today is the payment reconciliation. So if I click on related here and go into payment reconciliation journal, I get one journal here and it's for this checking account. So I'll just go to that one. And I think we should just assume that I imported this, but basically what you'll do is, once it's set up, you go in here and say import transactions or bank transactions, and it will import from the statement. You can specify the date range.

So the idea here is that you can be reconciling the bank daily, or very often at least, by importing transactions here and the system will try to match out. So for example, here in the first one, it's matching out on First Step Consultants for this amount and the match confidence is high. If I click on that, let's see, I can see that the amount is applied right here, and there is no difference. So it's clearly mapped out.

If I go to the next one here, let's say it's medium, click on that. It gives me a screen like this that says, we're pretty sure that this is the right amount. We've matched it out to this document number. And there is no related party matched, so we don't know that. And there's only one match. So if I click on here, you can see that the same amount is 1,412.87. So this seems to be correct.

If this was for some reason wrong, I could just remove that application, but I could accept the application right here and take that to the next level. So now it's been accepted. And I could go through everything and make sure that it's all good and then basically accept it through, and then go ahead and post it. Cool thing that you can set up also is, up here, there's something called map text to account. And if I click on that, it takes this text that I was in and adds that to the list of things to identify the vendor with.

So if you know, for example, that Delta is always going to be the Delta vendor, or whatever it is, Starbucks, let's say. It will automatically look for that. And it will match it out as it's doing matching. So you can give it clues basically with the mapping text. I'm just going to close that out. So once you mapped everything out here or accepted it, you can just go ahead and post. And basically the transactions will be posted and applied and it will close out, both on the vendor ledgers, customer ledgers, and in the bank account. So it's pretty cool.