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 unpaid invoices and credit memos or other open entries in Dynamics 365 Business Central.

You can perform this task in the Payment Reconciliation Journal window 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.

You can also reconcile bank accounts without simultaneously applying payments. You perform this work in the Bank Acc. Reconciliation window. For more information, see Reconcile Bank Account Separately.

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.

Alternatively, you can use the bank data conversion service to convert a bank statement file, from any format, to a data stream that you can import into Dynamics 365 Business Central. For more information, see Set Up the Bank Data Conversion Service.

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

See Also

Managing Receivables
Working with Business Central