Advanced bank reconciliation functionality

The fields as described in the following subsections are available to control the additional functionality for advanced bank reconciliation with Modern bank reconciliation feature.

Overview

Modern bank reconciliation feature contains exciting changes to Advanced bank reconciliation. The biggest change is the removal of Action Mark new transactions. This is replaced in std with:

• Generate voucher - offset type ledger
• Generate vendor payment - offset type vendor without settlement
• Generate customer payment - offset type customer without settlement
• Settle customer invoice - offset type customer with settlement

Summary of Finance Utilities extensions to Modern bank reconciliation:

• Offset company - Ability to post the offset to intercompany ledger, bank, vendor or customer.
• Offset type bank - Modern bank reconciliation doesn’t include an option for offset type Bank which is used for bank transfers. In Finance utilities we support this option under Generate voucher.
• Offset type customer:
  • Ability to use Customer reference to find the Customer account.
  • Field format - enhanced option in Reconciliation matching rule for using part of a bank statement field to find the invoice / customer.
  • One customer payment journal for all matched bank statement lines (only ‘Generate customer payment’).
  • Posting options (only ‘Generate customer payment’).
• Correction amounts - Ability to enter correction amounts at time of matching Bank statement transactions to Bank transactions.

Setup

Financial utilities parameters

Cash and bank management > Setup > Advanced bank reconciliation setup > Financial utilities parameters

In order to utilise Finance utilities extensions to Modern bank reconciliation:

• Enable feature Modern bank reconciliation and
• Set Enable modern bank reconciliation extensions to Yes

Bank account

Cash and bank management > Bank statement reconciliation > Bank accounts

The following standard setup is required on each applicable bank account if customer/vendor payments will be created either by running Reconciliation matching rules, or within the Bank reconciliation Worksheet:

• Customer payment journal
• Vendor payment journal

Note: Std doesn’t allow journal names where Summarise amounts in bank account is Yes.

Bank reconciliation matching rules

Finance utilities extensions to Modern bank reconciliation adds the following functionality to each action that replaces Mark new transactions:

Ledger

Action: Generate voucher
Finance utilities functionality extends Financial details in Step 2: Voucher parameters with:

• Offset company - ability to offset to a different legal entity (intercompany).
• Offset account type - select ledger to offset to an expense or income ledger account.
• Sales tax group - only enabled for offset type ledger. If an intercompany offset company is selected, our field will provide tax drop-down options from the applicable intercompany legal entity. For current legal entity company offsets, std’s tax field is utilised.
• Item sales tax group - only enabled for offset type ledger. If an intercompany offset company is selected, our field will provide tax drop-down options from the applicable intercompany legal entity. For current legal entity company offsets, std’s tax field is utilised.

Bank

Action: Generate voucher
Finance utilities functionality extends Financial details in Step 2: Voucher parameters with:

• Offset company - ability to offset to a different legal entity (intercompany).
• Offset account type - select bank for bank transfers.

Vendor

Action: Generate vendor payment
Finance utilities functionality extends Financial details in Step 2: Vendor payment parameters with:

• Offset company - ability to offset to a different legal entity (intercompany).

Customer

The following is applicable to both customer actions

• Generate customer payment
• Settle customer invoice

Step 2

Finance utilities functionality extends Customer invoice field in Step 2 (Optional): Identify customer account through invoice matching / Match open invoices with:

• Reference number - in Step 2 when identitying customer account through invoice matching, the Finance utilities Customer reference can be used to find the D365 customer account.
• Field format - option to use part of a bank statement field to find the D365 customer acount. For example using only ‘FTI00000453’ from bank statement field value ‘xx FTI00000453 yy’

Field format

Select the applicable line in Step 2, and select Field format. The following options are provided:

• No format - The bank statement field will be used as-is (default).
• Fixed field position - Set Start position and Length.
• Delimited field position - Set Delimiter (default is space) and Field position.
• Custom format - Ability to use a regex format.

The Example and Value field is automatically updated based on above selection. The user can also paste/type their own example into Example to view the resulted Value from their setup.

Example result for each option:

Option	Setup	Example Bank statement field’s original data	Value
No format		xxUS-001xx	xxUS-001xx
Fixed field position	Start position: 2 Length: 6	xxUS-001xx	US-001
Delimited field position	Delimiter: Field position: 0	US-001 extra description	US-001
Custom format	\*(.+)\* (\w+\s*-\s*\d+) [1-9][0-9]*	*US-001* xx FTI-0035345 yy CR025126	US-001 FTI-0035345 25126

Important notes for both Customer actions: When using Step 2:

• An invoice needs to exist for the customer, as std uses CustInvoiceForBankReconciliationView to find the customer.
• If the customer had a method of payment in above view, this method of payment would be used in the customer payment journal. The default on the Reconciliation matching rule will only be used where the customer didn’t have a method of payment assigned in the view for the record.
• Customer reference numbers must be kept unique accross all legal entities. Std code will look in current legal entity first, and then when it couldn’t find it, Finance Utilities is able to look in the offset company.

Step 3

Standard functionality: When Automatic customer account matching is set to Yes in Step 3’s Financial details, std will first try and find the customer account with bank statement field Related bank account in the customer’s bank account IBAN and then Bank account number and will then use Step 2’s setup if it couldn’t find via the customer bank account.

Find customer order:

1. Customer bank account’s IBAN
2. Customer bank account’s Bank account number
3. Reconciliation matching rule’s Step 2

Finance utilities functionality extends Financial details in Step 3: Customer payment journal parameters with:

• Offset company - ability to offset to a different legal entity (intercompany).

Finance utilities Description mask is replaced with standard’s Default description

The following is only applicable to

• Generate customer payment
  • One journal for all matched bank statement lines. No setup required, this is automatic for this action.
  • Post - provides the following three options:
    • Do not post - generally only used in initial testing. The customer payment journal will only be created (not posted). Once the user has reviewed and manually posted the customer payment journal, refresh the bank reconciliation’s worksheet to bring in the new bank transactions. User has to either use a match with bank statement rule or manually match the applicable bank statement lines with these new bank transactions. When running the reconciliation matching rule in the bank recon, the infolog will provide the journal number created.
    • Post - Indicates if the created customer payment journal should automatically be posted. The newly posted bank transaction(s) will also automatically be matched to the applicable bank statement lines.
    • Post and transfer - Indicates if the created customer payment journal should automatically be posted. If any errors found (example stopped customer), the error lines will be moved to a new journal. The newly posted bank transaction(s) will also automatically be matched to the applicable bank statement lines.

Default description

1. Enable feature Enable default descriptions for advanced bank reconciliation
2. Setup Default descriptions for Bank - reconciliation worksheet for each applicable Language or select user.
   

Finance utilities will use the same default description on the intercompany transaction.

This applies to all of the following actions:

• Generate customer payment
• Generate vendor payment
• Generate voucher
• Settle customer invoice - std doesn’t use default description for this action, added with Finance Utilities

Duplicate

Modern bank reconciliation has added new button Duplicate, which allows users to copy matching rules. Similar to Finance Utilities Copy matching rule.

When Financial utilities parameter Enable modern bank reconciliation extensions is set to Yes, the Finance Utilities button Copy matching rule is hidden (will be deprecated in future). The additional Finance Utilities fields for the new Modern bank reconciliation actions have been added the std’s Duplicate button.

Migration

Reconciliation matching rules

See the following page for migrating ‘Mark new transaction’ Reconciliation matching rules to the new actions.

Processing

Processing is discussed in detail here