Use cash and bank processes
The business processes in the cash and bank management include:
- Deposit bank funds
- Reconcile bank accounts
- Transfer bank funds
- Manage letters of credit
- Manage letters of guarantee
By using the Cash and bank management module in Finance, you can maintain your legal entity's bank accounts and the financial instruments that are associated with those accounts, including deposit slips, bills of exchange, promissory notes, or checks. You can also reconcile bank statements and print data on reports.
When your company uses advanced bank reconciliations, you can import bank statements. When importing bank statements, the transactions may display as a credit when they're a debit and vice versa. However, there is a feature that allows you to reverse the debit and credit on these imported bank statement transactions. You may also wish to specify the time zone when you are importing bank statement files. This option can be set when configuring the bank statement import settings.
You can also post new transactions directly from bank reconciliation. Bank fees, interest, and other new transactions can be marked and directly posted. You can check the posted vouchers directly in the Bank reconciliation worksheet.
Finance supports more complex bank reconciliation matching rules so that you can define complex matching rules between multiple bank statement lines and bank account transactions. This lets you track and verify the accounting entry and transaction detail.
Automatic bank reconciliation matching can be used for the following scenarios:
- One bank statement line matches with multiple bank transactions
- Multiple bank transactions match multiple bank statement lines
- One bank transaction match with multiple bank statement lines
To understand the daily activities of personnel who manage the Cash and bank management module, consider the following scenario.
At Contoso Retail, Annie is the Bookkeeper who manages the creation, deletion, and voiding of checks and electronic payments. Annie creates check refunds for customers when required and processes payments to vendors. Also, when Contoso Retail receives a bank statement, Annie reconciles the statement with the transactions in the application.
Checks
You can use this functionality by navigating to Cash and bank management > Payment reversals > Checks. The Checks page provides access to view existing check transactions and create new checks.
After the check is created, you can generate payment by printing checks through the Accounts payable > Payments > Vendor payment journal. For more information about this process, see the links in the Summary unit at the end of this module.
You can delete a check in Finance if it is not used. Checks created but not used have the status of Created in the Status field. If you include checks that have a status other than Created in the interval between the From and To fields, no checks are deleted and the Delete checks job is canceled.
You can also enable the ability to create checks with a blank status to prevent wasting checks unnecessarily. To create a check with a blank status, select the bank account to create the blank check for in the Bank accounts page. Then select Checks on the Manage payments tab on the Action Pane. On the Checks page, you can select Create blank checks button in the Action Pane. It is important to note that you can use this functionality only after it enabled using the Feature management workspace. If the feature isn't turned on, checks that have Blank status can be created only from the Payment by check dialog box during the payment generation process in Accounts payable.
After printing or attempting to print checks, you may be unable to use them. For example, if a check is damaged while it is printed, you must void the unused checks. You can only void a check that is not posted.
Under certain circumstances, companies must generate payment refunds to their customers or process refunds that they received from their vendors. This usually occurs when credit notes, overpayments, and bonuses are involved in third-party transactions.
In Dynamics 365 Finance, you can create a check refund that prints a check. The refund feature is implemented for customers in Accounts receivable > Payments > Customer payment journal. For more information, see the links in the Summary unit at the end of this module.
Before you create a check refund, set up a method of payment using Accounts receivable > Payments setup > Methods of payment to refund a check to a customer if you haven't done this already. For more information about methods of payment, see the links in the Summary unit at the end of this module.
Watch this video to see how to use the Cash and bank management module to create and delete checks.
Payment reversals
Occasionally, you need to reverse a check after you make a payment and post the check. For example, the delivery company might have the check or a member of the accounting staff might notice that an employee paid the check in error. Finance lets you reverse posted check payments.
There are two methods available for reversing posted checks:
Reversals are posted immediately when you select Payment reversal in Cash and bank management > Bank accounts > Bank accounts, Check.
When you select Payment reversal on the Checks page, the reversal is sent to the Cash and bank management > Payment reversal approvals > Check reversals where a reviewer can then post or reject the reversal.
When you cancel a deposit slip payment, the single payment is canceled, not the entire deposit slip. Other deposit lines remain unchanged.
You might reverse a check to reissue a payment made to a vendor. You can reverse only posted checks that have a status of Paid. Reversing differs from deleting or voiding checks because you can delete only checks that have a status of Created, and you can void only unposted checks.
Deleting the journal removes the reversal from the Finance, but the original check remains on the Check page. The status of the check is no longer Pending cancellation.
Deposit slips
A deposit slip is a document used to deposit checks, credit card notes, and cash into a bank account. Use the Deposit slip page to view and manage deposit slips for payments into bank accounts.
You can cancel a deposit slip payment if a customer payment is invalid. If you have reconciled the deposit slip in the bank statement, you cannot cancel the payment.
Finance requires a reason code if Require reasons for deposit slip payment cancellations is set to Yes on the General FastTab in Cash and bank management > Setup > Cash and bank management parameters.
You can submit a deposit slip payment cancellation for review. It requires a review if Use review process for deposit slip payment cancellations is set to Yes on the General FastTab in Cash and bank management > Setup > Cash and bank management parameters. During review, you can either approve and post the journal, or reject the cancellation.