How to reconcile your bank account
The Continia Statement Intelligence module for Continia Payment Management allows you to reconcile your bank accounts automatically.
Once a bank account statement is imported in Payment Management, Statement Intelligence will try to find the corresponding bank entries in Dynamics NAV or Business Central on-premises. If the bank entry is posted, it is reconciled automatically. If the bank entry is not posted, a proposal for posting the bank entry is automatically created, for example, payments, interest, fees, and more. If there are several reconciliation options, proposals for reconciliation are created, which must be approved by you.
To read more about the functionality of the Statement Intelligence module, see the section The Statement Intelligence module.
How to reconcile your bank account
- Select the icon
or press Ctrl-F3, enter Bank Accounts, and select the related link. - To access the Bank Account Card, you must either select the New action if you want to create a new bank account, or select an existing bank account and select the Edit action.
- On the bank account card, select the action Reconciliation (PM). This opens the window Bank Account Reconciliation Payment Management window.
- Select the action Import Account Statement. Read more about what options you have at the bottom of this page, where the function Import Account Statements is described in more detail. Once you have selected the correct account statement it is imported, after which the function Reconcile Account Statement starts automatically. You can read more about what the feature does at the bottom of the page.
- Now reconcile or apply the individual lines. Use the features described below to apply and reconcile your bank records. If there are several reconciliation proposals, you should select the function Choose Reconciliation.
- Below you will find descriptions of the individual fields and functions in the window, and what consequences they have for the use of Payment Management.
- When all bank entries have been applied and reconciled, you must post the reconciliation with the function Post Account Reconciliation or Post and Print.
- Select OK to finish the reconciliation.
General
| Field | Description |
|---|---|
| Bank Account No. | Indicates the bank account to be reconciled. |
| Account Statement No.. | Internal Dynamics NAV or Business Central on-premises account statement number.. |
| Account Statement Date | Specifies the date the account statement is imported and reconciled. |
| Last Statement - Balance | Indicates the balance, from the last bank statement. |
| Account Statement End Balance | Indicates balance, after importing account statement. |
| Lines in Cash Rcpt. Jnl. | Indicates how many lines have been suggested in the cash receipt journal. |
| Lines in gen. Jnl. | Indicates how many lines have been suggested in the general journal. |
Bank Acc. Recon. Line Payment Management
| Field | Description |
|---|---|
| Status | Status can be: OK, Means that a Posted bank entry has been found and reconciliation of this line is OK Unsolved, Means no direct match has been found and the line must be handled. Pending General Journal, Means that the entry has been transferred to the General Journal and is ready to be handled. Pending Cash Receipt Journal, Means that a match has been found and the entry has been transferred to the Cash Receipt Journal and is ready for posting. |
| Notification | Indicates whether there is further notification for the entry. If Yes, you can use the Notification action to view what has been notified. |
| No. of Recon. Suggestions | Indicates how many customer entries have been found to be applied. It is possible to enter a customer number in the field Customer No. on the reconciliation line. This allows you to use the function Apply Cust. Entries, where you can specify which customer entries the payment relates to. |
| Selected Recon. Found By | Indicates whether the reconciliation has been found on the basis of found Payment ID, Document No. or Customer No.. |
| Edit Allowed | Indicates whether or not you can edit the reconciliation line. See description of the function Line, and the method Toggle Edit Allowed in the next table. |
| Manuel handling | Marked if you want to handle the line manually. Once you have selected the line, you can use the Create Journal Lines function to transfer the line to the general journal. Then go over to the general journal, handle the document and post the line. When you return to the reconciliation line, the line will be automatically applied and reconciled. |
| Posting Date | Indicates the banks posting date. |
| Posting Description | The field is filled in depending on which bank the bank statement comes from and what the sender has sent. |
| Account Statement Amount | Amount deposited or withdrawn from the account. |
| Applied Amount | Amount which has been found a match with. |
| Difference | Difference between Account Statement Amount og Applied Amount. |
| Value Date | The bank's stated value date. Value date is in the banking context the date from which a change in balance has an interest rate effect from. |
| Original Currency Code | A bank account is always kept in the currency in which it was created. **Original Currency Code ** indicates the currency from which the amount was originally converted. |
| Customer No. | Indicates the Customer number. |
| Bank Statement No.. | The banks bank account statement number. |
| Reference Text 1-6 | The field is filled in depending on which bank the account statement comes from and what the sender has sent with. |
| Reference Code 1-6 | The field is filled in depending on which bank the account statement comes from and what the sender has sent with. |
| Warning | Indicates whether there are warnings in the reconciliation of the item in question. |
| Sender Reference | The field is filled in depending on which bank the account statement comes from and what the sender has sent with. |
| Own Reference | The field is filled in depending on which bank the account statement comes from and what the sender has sent with. |
| IBAN | The bank account IBAN code. |
Actions on lines
At the top of the bank entry lines window, you will find the following functions that are specific to Payment Management:
| Action | Description |
|---|---|
| Line - Show Cust. Acc- Stmt. | If you use Continia' s reports to print customer account statements, you can use this feature to view the account statements that the entry can be applied against If you send out sales account statements to your customers with a FIK or Giro payment slip attached, and at the same time want the opportunity to "match" payments on a given account statement to which invoices and credit notes are to be settled, you must enter a document number series for this purpose. The document number is deducted in connection with the printing of the bank statement and is used as Payment ID on the account statement's FI slip. Similarly, information is stored about which customer entries are to be settled if the FI slip is paid in full. The information is used so that Continia Payment Management can make a correct settlement when the payment is received. You can read more about the setup of the reports in the section Setting up reports for printing FIK/GIK payment slips. |
| Line - Show Data Imported From Banks | When Dynamics NAV or Business Central on-premises retrieves status files, account reconciliation files or account statement files, either as file import or as xml data sent through web service, they are saved in tables defined as "Data Imported From Banks". With this function you can see which files have been downloaded in connection with this account statement. |
| Line - Toggle Edit Allowed | By default, account statement lines are not editable. However, situations may arise where it would be appropriate to be able to edit in the line, e.g. if a notification or account number is incorrect. The function thus changes to editable the first time you activate it. Is the line already editable, changes to non-editable, etc. When the line is editable, you can change all fields on the line. Under Set up the Continia Statement Intelligence module, Lock Reconciliation Lines, you can enable or disable whether users can change reconciliation lines. It also describes how to increase the security of editing reconciliation lines. |
| Line - Find Payment Ledger Entries | Opens the window Payment Entries, where you can see which payment entries match the text in the field Posting Description on the line. |
| Reconcile Bank Entries | Opens the window Reconcile Bank Entries, where you can mark which open bank entries the selected line applies to, and thus reconcile with. If Statement Intelligence has already settled bank entries automatically, these will be listed as already marked. If necessary, use the functions Next Applied Entry or Previous Applied Entry, to change the active line in the reconciliation journal without closing and reopening the window. The Flip show only applied function changes filter for the window. If you filter to a specific date in the reconciliation lines, Reconcile Bank Entries and Reconcile Cust. Entries will be filtered to the same date. |
| Apply Cust. Entries | Opens the window Reconcile Customer Entries Payment Management, where you can see and edit which open customer entries the line in question settles, and thus reconcile with. If a customer number is entered on the line, it will be an overview of this customer's open entries. Customer entries will in principle be found automatically by the system, but for those customers who pay the wrong amount, on account or otherwise do not fully settle an invoice, you can manually mark the customer entry here. If the reason for the non-settlement is due to a defective posting text or notification, you may be able to define a customer reconciliation rule that will "catch" the customer entry automatically. Read more in the section Define reconciliation rules for customer payments. If you filter to a specific date in the reconciliation lines, Reconcile Bank Entries and Reconcile Cust. Entries will be filtered to the same date. |
| Choose Reconciliation | When importing account statements, one or more reconciliation proposals will typically be found. These can be selected under the function Choose Reconciliation. |
| Notification | Opens the window Bank Account Reconciliation Line Notification, where you can see the individual notification lines that apply to that line. You can edit the notifications if e.g. an invoice number is entered incorrectly and thus is not "caught" by the reconciliation function. If you have used the function Merge Lines or defined Merge Rules, the lines that are merged are also described here. |
| Merge Lines | By selecting 2 or more lines, you can use the Merge Lines function to combine several lines into one line. You can e.g. merge two deposits, from the same credit card terminal, which is posted as a single bank entry. Merge Rules are ignored by manual merge. Notice that the Posting Description changes and that you can see what is merged using the Notification function. |
| Find | Search function with which you can search in all fields on the bank account reconciliation lines. |
| Filter / Clear filter | Filter function, with which you can set filters on the various fields and thus filter which bank account reconciliation lines are to be displayed. Clear filter removes the filter again. |
Lower part of the window
| Field | Description |
|---|---|
| Status | Displays the status of the current line. There are the following statuses: OK, Unsolved, Cash Rcpt. Jnl. Diff., Bank Ledg. Entry Diff., Awaiting Cash Rcp. Jnl, Awaiting G/L Jnl. and General Jnl. Diff.. |
| Total Difference | The total amount difference for the bank entries that have not been settled in the entire account statement. |
| Balance | The balance of the bank account on the specified date of the selected line after this entry is posted in the bank. |
| Total balance | The closing balance of the bank account, at the last posting. Same as Account Statement End Balance. |
| Customer Name | Customer name. Specified, if the field Customer No. is filled in on the line. |
Action on the window
At the top of the window, you will find the following features that are specific to Payment Management:
| Action | Description |
|---|---|
| Import Account Statement | Imports an account statement from file or shows you a list of account statements from which to choose which account statement you want to import. Depending on whether you use direct or manual communication with your bank, the following happens: Manuel communication Opens the Import Account Statement window, where you can enter the file name and path to your account statement file. Direct communication If you have selected Manual download in the Banks and Bank Bookkeeping Branches overview, the same thing happens as under Manual communication. If you have selected Automatic download, all account statements are imported automatically and if there are several account statements, select the one you want to import. If there is only one account statement, it is imported automatically. Note If this is the first time you are importing an account statement, there is a high probability that the field Last Account Statement - Balance does not match the Starting Balance specified on the account statement. This is perfectly normal and you just need to confirm that you want to change the value. If you have previously imported an account statement, it may be a warning that you are importing an incorrect account statement. |
| Post Account Reconciliation | Via the dialog box, confirm that you want to post the account reconciliation. |
| Post and Print | Same as Post Account Reconciliation described above, but where a journal is subsequently printed. |
| Cash Receipt Journal | Opens the Cash Receipt Journal window where you can view, edit and post the payments that Statement Intelligence has automatically found associated open accounts receivable to. If there is a small offsetting difference, you must manually, and in another journal, post the difference as a wrong payment if you want the customer entry closed. Alternatively, define payment tolerances, where you can specify a payment tolerance to complete an invoice when the payment does not fully cover the amount on the invoice. You can also set a cash rebate tolerance to give cash rebate after the cash rebate date has been exceeded. When the cash receipt journal is posted and the window is left, Statement Intelligence will automatically run the Reconcile Account Statement feature to update any new bank reconciliations. This function can also be called manually. |
| General Journal | Opens the General Ledger Journal window, where you can view and edit created general journal lines for accrued interest and fees. The current bank account is set as a balance entry on the expense entries, and thus related bank entries are created when posting the journal. When leaving the general journal, Statement Intelligence will automatically run the Reconcile Account Statement function so that any new bank reconciliations are updated and reconciled. |
| Recon. Account Statement | Function that you can manually activate Statement Intelligence's reconciliation function again at any time. The function runs automatically when you leave the general ledger journal or the cash receipt journal. For example, if you have posted other journals, payments or the like that affect bank records in your bank reconciliation, it may be necessary to run the function manually. |
| Create Journal Lines | To use the function, you must first select the column Manual Handling. Once you have selected the line, you can use the Create Journal Lines function to transfer the line to the general ledger journal. Then go over to the general ledger journal, handle the document and post the line. When you return to the reconciliation line, the line will be automatically applied and reconciled. |
| Transfer Diff. to Gen. Journal | A possible difference such as has arisen due to exchange rate differences, can be transferred to the general journal, handled and posted, after which you get reconciled and can post your account statement. |
| Find Payment Ledger Entries by UPR-No. | Specific search function, which searches for payment entries in which a specific UPR number is included. |
| Merge Lines by Rule | Once you have defined a rule, you can run the Merge Lines by Rule function from the reconciliation journal. You can define reconciliation rules that merges multiple entries into one or more entries, e.g. one entry per day. This is typically used where e.g. credit card transfers are required for a total of one entry per day. |
| Reconciliation Rules | Opens the Bank Account Reconciliation Rules window where you can view and edit the bank-specific reconciliation rules created for the bank account. If the automatic bank account reconciliation in Payment Management is to create posting proposals in the cash receipt journal when a bank entry does not have an open record that can be settled with (eg; enclosures, drains, interest and fees), you must define rules for this. If the function finds a rule it can match with the entry, the entry is automatically transferred to a cash receipt journal, ready for posting and subsequent applying. |
| Merge Rules | Opens the Bank Account Reconciliation Merge Rules window, where you can create rules that merge account statement lines when you import an account statement. You can define reconciliation rules that combine multiple account statement lines into one or more entries, e.g. one entry per day, or, one entry per credit card terminal per day. |
| Customer Application Rules | Opens the window Customer Reconciliation Rules, where you can view and edit reconciliation rules for customers. The function helps you with "capture" entries on the account statement where neither invoice nor FIK number is specified. If a rule exists and a match is found in the account statement, a posting proposal is created in the cash receipt journal with the settlement of the invoice where the amount fits. All you have to do is post the payment, the rest of the automatic account reconciliation will work out for you. |
| Delete Line (Np Re-Import) | Use this function to delete lines in the reconciliation journal and ensure that they are not re-imported the next time you import entries into the journal. |
How the reconciliation works
Each account statement line is reviewed independently and if there are several proposals, it will appear in the field Number of Recon. Suggestions, after which you must select the correct line.
First, try to find bank records that match the bank statement lines for direct reconciliation. Statement Intelligence searches for posted payment entries from the Sender Reference field.
The field Sender Reference will, for all payments made via Payment Management, be optimally filled in with the unique UPR number. Filling in the field is defined as described via the Sender Reference code on the bank account card, under Payment.
The transaction number of the payment entry found will then be used to find the associated bank entry, which will then be marked for reconciliation.
Attempts are then made to find closed accounts receivable that correspond to the information in the account statement line; this is done on the basis of Customer No., Payment ID or Document No. - and of course the amount and date. If there is a closed customer entry, and the corresponding bank record is found, the line is marked for reconciliation.
After this, an attempt is made to find a reconciliation proposal by searching directly for bank entries with the amount and date as the search key.
If a bank entry has still not been found for the posting line, the open customer entries will be searched again with Customer No., Payment ID or Document No. as search key - this is done in order to find customer entries that has been paid without it being registered in Dynamics NAV or Business Central on-premises.
For open accounts receivable entries found from the last way, Statement Intelligence simultaneously creates a proposal to insert the payments in the cash receipt journal, ready to post. After posting, the associated bank entry will be reconciled on the account statement line.
Eventually, all non-reconciled account statement lines will be scanned to see if there are any that match the reconciliation rules defined on the bank account. If there is such a rule, posting proposals are created for expense or income posting lines in the cash receipt journal.
When the cash receipt journal is posted, the corresponding payment lines will be created as payment entries, and the associated bank entry will be able to be reconciled with the account statement.
Lines that have not yet been reconciled correctly must be handled manually via the button Reconcile Bank Entries.