AI Generated Content
Start
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[Setup Phase - One Time / Periodic]
├── Enable "Advanced bank reconciliation" (Feature + on Bank Account)
├── Enable "Modern bank reconciliation" feature
├── Configure Bank Statement Import Format (ISO20022, BAI2, MT940, etc.)
├── Set up Bank Transaction Types & Transaction Code Mapping
├── Create Reconciliation Matching Rules & Rule Sets
│ └── (Actions: Match, Generate voucher, Generate customer/vendor payment, Settle customer invoice, Clear reversal)
├── Configure Number Sequences & Cash & Bank Parameters
├── (Optional) Set "Reconcile after import" = Yes + Default Rule Set on bank account
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[Daily/Monthly Process]
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1. Import Bank Statement
├── Manual upload or Automatic (Power Automate / SFTP / SharePoint)
├── System validates statement (or manual Validate/Confirm)
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2. Create / Auto-create Bank Reconciliation
├── On Bank reconciliation page → New → Select bank account & statement
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3. Open Bank Reconciliation Worksheet
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4. Run Automatic Matching (Matching Rule Sets)
├── Match by:
│ • Amount (+/- tolerance)
│ • Date (+/- tolerance)
│ • Transaction Type / Code
│ • Reference / Description / Document ID
│ • Reversal handling (newer enhancements)
├── Modern enhancements: One-to-many, Many-to-one, Many-to-many matching
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5. Review & Manual Matching / Adjustments (if needed)
├── Side-by-side view: Bank Statement vs Finance Transactions (improved worksheet)
├── Create new transactions from statement (fees, interest, direct payments)
├── Clear unmatched items manually or via additional rules
├── Resolve exceptions / reversals
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6. Mark Reconciliation as "Reconciled"
├── All items balanced (difference = 0)
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7. Post Reconciliation
├── Post adjustments / journals / generated payment journals
├── Updates bank balance in D365
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8. Generate Reconciliation Report / Statement / History
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End (Bank Account Reconciled)