Applying Payments Automatically and Reconciling Bank Accounts

You must regularly reconcile your bank, receivables, and payables accounts by applying payments recorded in the bank to their related open (unpaid) invoices and CR/Adj notes or other open entries in Business Central.

You can perform this task on the Payment Reconciliation Journal page, for example, by importing a bank statement file or feed to quickly register the payments. Payments are applied to open customer or vendor ledger entries based on matches between payment text and entry information. You can review and change automatic applications before you post the journal. You can choose to close any open bank account ledger entries related to the applied ledger entries when you post the journal. The bank account is automatically reconciled when all payments are applied.

The logic that governs how payment text is automatically matched with entry information is set up on the Payment Application Rules page as a number of prioritised rules that you can edit.

You can also reconcile bank accounts without simultaneously applying payments. You perform this work on the Bank Acc. Reconciliation page. For more information, see Reconcile Bank Accounts.

To import bank statements as a bank feed, you must first set up and enable the Envestnet Yodlee Bank Feed service, and then link your bank accounts to the related online bank accounts. For more information, see Set Up the Envestnet Yodlee Bank Feeds Service.

Tip

You can also import bank statement files in comma or semicolon delimited format (.CSV). Use the Set up a bank statement file format assisted setup to define bank statement import formats and attach the format to a bank account. You can then use these formats when you import bank statements in the Bank Account Reconciliation page.

Alternatively, you can use the AMC Banking 365 Fundamentals extension to convert a bank statement file, from any format, to a data stream that you can import into Business Central. For more information, see Use the AMC Banking 365 Fundamentals extension.

The following table describes a sequence of tasks, with links to the topics that describe them.

To See
Apply payments to open customer or vendor ledger entries by importing a bank statement, and reconcile the bank account when all payments are applied. Reconcile Payments Using Automatic Application
Manually apply payments by viewing detailed information about matched data and suggestions for candidate open entries to apply payments to. Review or Apply Payments After Automatic Application
Resolve payments that cannot be applied automatically to their related open ledger entries. For example because the amounts differ, or because a related ledger entry does not exist. Reconcile Payments that Cannot be Applied Automatically
Link text on payments to specific customer, vendor, or general ledger accounts to always post recurring cash receipts or expenses to those accounts when no documents exist to apply to. Map Text on Recurring Payments to Accounts for Automatic Reconciliation
Set up the rules to govern how payments/bank transactions should be automatically applied to their related open ledger entries when you use the Apply Automatically function on the Payment Reconciliation Journal page. Set Up Rules for Automatic Application of Payments

See Also

Reconcile Bank Accounts
Managing Receivables
Sales
Work with Business Central