We recently hosted a webinar as part of our ongoing Dynamics 365 Finance & Operations webinar series. Walkerscott’s expert team explored some of the updates and new features available in the latest October 2024 release. For those who missed this informative session, we have summarised what our team discussed, and we have linked to the webinar recording which you can watch on YouTube anytime.
In the latest update (version 10.0.41) of Dynamics 365 Finance & Operations (D365 F&O), Microsoft has introduced Modern Bank Reconciliation – designed to enhance the bank reconciliation process, improve efficiency, and eliminate the need for customisations many organisations have traditionally relied on. This webinar focused on the latest updates to the Advanced Bank Reconciliation functionality.
What is advanced bank reconciliation in Dynamics 365 Finance & Operations?
Advanced Bank Reconciliation is not new to Dynamics 365 users, and it continues to be a key feature for automating bank statement imports and reconciliations. In the latest release, Microsoft introduced several enhancements that improve its usability, performance, and flexibility.
What are key features of the latest updates to Advanced Bank Reconciliation in Dynamics 365 F&O?
- Skip Reversal Flag: This feature simplifies the process of matching reversed transactions. Previously, users had to apply a reversal flag manually on one of the transactions for the system to recognize it as a reversal. With this update, the system can skip this step, making reconciliation faster and more intuitive.
- Batch Mode for Bank Statement and Line Posting: Batch mode significantly reduces the time required to post large volumes of transactions. In previous versions, users had to manually post transactions, and if the session timed out, they would need to start over. Batch mode now automates this process, preventing session timeouts and improving efficiency.
- Automatic Clearing of Bridge Transactions: For organisations that use bridge payments (a two-step process of posting to a clearing account before moving transactions to the bank account), the new update automates the clearing of bridge transactions. Once reconciliation is complete, the system automatically posts the corresponding general ledger entry, saving time and reducing the risk of errors.
- Improved Matching Rules: Advanced Bank Reconciliation now allows users to configure enhanced matching rules that can automate reconciliation based on transaction types, dates, and amounts, among other parameters. This is a valuable addition for organisations with complex reconciliation needs, reducing manual intervention and boosting efficiency.
Introducing Modern Bank Reconciliation in Finance & Operations
While Advanced Bank Reconciliation has been a staple feature, Microsoft has raised the bar with Modern Bank Reconciliation, now generally available in version 10.0.41. This feature improves on the foundation of Advanced Bank Reconciliation, focusing on increased usability and performance.
What are the key features of the all new Modern Bank Reconciliation in Dynamics 365 Finance & Operations?
Modern Bank Reconciliation builds on the existing system with several powerful features that make the reconciliation process more intuitive and customisable:
- Enhanced Usability: Modern Bank Reconciliation simplifies complex reconciliation processes by allowing users to define matching rules more easily. These rules help match customer payments and supplier payments based on specific criteria, making the process more flexible and automate.
- New Matching Rules: Several new matching rules have been introduced in Modern Bank Reconciliation. These include:
- Generate Customer Payments: Automatically generate customer payment journals when certain criteria are met (e.g., trading party, bank transaction code).
- Generate Supplier Payments: Similar to customer payments, this feature helps automate supplier payment journal creation.
- Generate Vouchers: Automate the generation of vouchers based on matching rules.
- Settle Customer Invoices: Automatically settle customer invoices during the reconciliation process, reducing manual tasks and ensuring more accurate financial records.
- Customisation-Free Reconciliation: Many organisations previously relied on customisations to tailor the bank reconciliation process to their specific needs. With the introduction of Modern Bank Reconciliation, Microsoft has integrated features that eliminate the need for custom logic, helping organisations reduce complexity and improve the longevity of their systems
- Replacing “Mark as New”: In previous versions, users had to manually mark transactions as new. With Modern Bank Reconciliation, this is no longer necessary. The system can now automatically generate vouchers and process settlements based on the defined matching rules, further reducing manual intervention.
What do these new features mean for you in the real world?
Both Advanced and Modern Bank Reconciliation offer significant benefits for finance teams:
- Reduced Manual Work: Automation of posting, journal creation, and transaction matching reduces manual effort and speeds up reconciliation.
- Improved Accuracy: By automating key steps like bridge transaction clearing and journal generation, organisations can avoid manual errors that lead to discrepancies.
- Customisation-Free Operations: The new features eliminate the need for customisations, ensuring a smoother transition during system upgrades and reducing future maintenance costs.
- Better Performance: Batch mode and automated reconciliation processes help organisations handle larger transaction volumes more efficiently, with less risk of session timeouts or performance bottlenecks
Practical setup and configuration of Advanced and Modern Bank Reconciliation in Dynamics 365 Finance & Operations
Setting up both Advanced and Modern Bank Reconciliation in Dynamics 365 F&O is relatively straightforward. The setup involves navigating to Feature Management and enabling the desired features. Once enabled, organisations can configure key parameters such as bank accounts, bridging accounts, and matching rules for customer and supplier payments.
For a step-by-step demo, check out the webinar recording below.
Watch our Advanced and Modern Bank Reconciliation demo in Dynamics 365 F&O
To see these features in action, watch our webinar recording available on YouTube where Walkerscott’s resident expert, Neeha George, D365 Finance Consultant, dives into the Advanced and Modern Bank Reconciliation processes. You’ll learn how to set them up, configure matching rules, and use batch processing to simplify your finance operations. This high-level session provides a practical look at how these features can transform the way your organisation handles bank reconciliation.
