Reconciling payments made to and from your bank account to customer and vendor invoices can be an extremely frustrating and time consuming task.
The Bank Reconciliation functionality implemented in Microsoft Dynamics NAV 2015 made additional improvements to the payment process. This has now been further improved in Dynamics NAV 2017 and 2018, and in Business Central with the Payment Reconciliation. The payment reconciliation functions now provide an automated solution and simple method of applying payments into your bank, as well as to your Customers and Vendors.
The Payment Reconciliation function allows you to upload bank transaction files for payments that have been made to, or from, your bank account and instantly applies the payments to similar open entries. The automatic applications give recommendations, each based on the “Match Confidence level”, that can still be manually adjusted until you post the lines in the journal.
Not only does the system reconcile against the bank account, the payment journal will also create the payment against the customer and apply the balance to the invoice—combining several payment processes into one screen.
Another key feature has been introduced to allow mapping text from the bank statement to general ledger accounts. You can associate text on payments with debit, credit and balancing accounts, so recurring payments are automatically mapped to certain accounts. This way you can ensure regular fees are always posted to a specific general ledger account.
The overall benefit we get from using this process is a decrease in effort and time spent to achieve effective payment reconciliation and application. This reduces the amount of duplication, as you are able to post the customer payment and the bank reconciliation in just one process.