Our final time-saving tip in our series teaches you how to set up Automated Bank Reconciliation in Microsoft Dynamics 365 Finance and Operations. Who doesn’t love automation? Learn how Dynamics 365 supports automatic bank reconciliation through the import of bank statements and with rules for matching. On average, this solution will clear 95% of all banking transactions, leaving a small remainder for user intervention and processing. If you want to stop wasting time with manual bank reconciliations, this article is for you.
Automated Bank Reconciliation is a relatively new function that can speed up the accounting process by matching your bank statement or bank account with accounting records. By removing the need to manually input your bank account transactions, you are removing the associated time and cost of the manual process. The bank reconciliation feature lets you import electronic bank statements and automatically reconcile them with bank transactions in Dynamics 365. This article explains how to set up the import functionality for your bank statements. The setup for bank statement import varies, depending on the format of your electronic bank statement. Dynamics 365 supports three bank statement formats out of the box: ISO20022, MT940, and BAI2. Watch a video demonstration on our YouTube channel.
Set up Automated Bank Reconciliation in Dynamics 365 Finance and Operations
- Import the bank statement and then set up rules for matching.
- There are various advanced reconciliation options in the setup parameters. Review and determine which are applicable to your business.
- Configure the bank account to utilize advanced bank reconciliation. Review setup options and determine which are applicable to this bank account.
- Define bank transaction types. Setting up bank transaction groups isn’t required, but makes managing the types easier.
- Perform the Advanced Bank Reconciliation setup tasks.
- Set up the bank statement format.
- Map bank transaction types to the bank statement transaction codes used by your bank. Note that this may be unique by bank.
- Set up matching rules and activate each one.
- Set up matching rule sets and include the appropriate matching rules. Note that this may be unique by bank account.
- To import the bank statement, go to Cash and Bank Management > Bank Statement Reconciliation > Bank Statements. Click Import Statement, select file(s) and import bank statement(s).
Completing a regular reconciliation of all bank accounts helps to bring attention to variances, errors and fraudulent activity. Common variances include bank fees, insufficient funds check deposits, and incorrectly recorded transactions. With automated bank reconciliation, these activities become much easier and can be performed more often. Producing regular reconciliations assists in the auditing process and helps to eliminate inconsistencies on end-of-the-year account reconciliations.
About the Author
Diann Spencer, Western Computer’s Dynamics AX Finance Consultant, has been involved in many successful implementations of Dynamics AX in small, midmarket, and large companies across a variety of industries. Diann has over a decade of financial experience and she is a Certified Public Accountant.More Content by Diann Spencer