MT940 Advance Bank Reconciliation

Management or a process owner

Section 1 only

Explains what changes, the effort saved, the control improvements and what evidence you will receive each period. No system knowledge assumed.

A finance user running the reconciliation

Sections 3, 4 and 5

Step-by-step execution, exception handling and corrections. Appendix E is a one-page daily checklist you can print.

A consultant or administrator configuring the system

Sections 2, 3 and 6

Full configuration in dependency order, plus known gaps and their workarounds.

Preparing for go-live

Section 7

Cutover approach, readiness checklist and the open decisions still to be closed.

Navigate Module > Setup > Page

The menu path to reach a page in D365 Finance & Operations.

Bold text

A field name, button, page name or option value exactly as it appears on screen.

NOTE / IMPORTANT / CAUTION

Shaded panels. NOTE adds context, IMPORTANT must be followed for the process to work, CAUTION flags an action that cannot be undone.

KNOWN GAP

A limitation of the standard product, with the agreed workaround.

FOR MANAGEMENT

A short business-language summary of a technical point.

ABR

Advanced Bank Reconciliation — the D365 feature that imports electronic bank statements and reconciles them automatically.

Bank document / bank transaction

A transaction already posted in D365 that has hit the bank account — a payment, receipt, cheque or journal.

Bank statement line

A single transaction as reported by the bank on the imported statement.

BAI2

A US-originated electronic bank statement format. Supported by D365 but not used here.

CAMT.053

The ISO 20022 XML bank statement format. Supported by D365 but not used here.

Cut-off date

The date that determines which statement lines and which D365 bank transactions are pulled onto a reconciliation worksheet.

ER (Electronic Reporting)

The D365 framework that parses the bank statement file into data D365 can read. Replaces the older XSLT transformation route.

Matching rule

A set of criteria that automatically pairs statement lines with D365 bank transactions, or posts them.

Matching rule set

An ordered group of matching rules that run in sequence in a single pass.

Modern bank reconciliation

The current generation of the ABR feature. Adds statement confirmation, voucher and payment journal posting from the worksheet, and reconciliation reversal.

MT940

The SWIFT end-of-day customer statement message. The statement format used on this engagement.

ODUS

Open Decisions and Unhandled Scenarios — items requiring a business decision before they can be built or run.

Penny difference

A small permitted variance between a statement line and a D365 transaction that still allows a match.

Reconciliation worksheet

The working page where statement lines and D365 bank transactions are matched side by side.

Reversal line

A statement line the bank has posted and then backed out, leaving two lines that net to zero.

Matching

Every line compared by eye

Rules match the bulk automatically; user reviews exceptions

The largest single saving. Effort scales with exceptions, not with volume.

Data capture

Statement re-keyed or pasted into Excel

Statement file imported directly

Removes transcription error entirely.

Frequency

Practical only at month-end

Daily import is a ten-minute routine

Problems surface within a day instead of within a month.

Bank charges and interest

Posted through a separate general journal

Posted from the reconciliation worksheet itself

Fewer hand-offs; the posting is tied to the statement line that caused it.

Customer and vendor payments

Identified manually, then applied in a separate journal

Payment journal generated and settled from the worksheet

Cash application and reconciliation stop being two separate exercises.

Balance integrity

Not independently checked

Opening balance, closing balance and line totals validated on import

A tampered or truncated statement file is rejected at the door.

Audit evidence

A spreadsheet

System-generated reconciliation statement per account per period

Evidence is reproducible and cannot be edited after the fact.

Segregation and lock-down

Spreadsheet can be changed at any time

A reconciled statement is locked; reversal is a tracked, permissioned action

A real control rather than a stated one.

Reconciliation status per bank account

Bank reconciliation page — Reconciled flag

Whether each account has actually been reconciled for the period, not whether someone says it has.

Unmatched line ageing

Bank reconciliation worksheet — unmatched grids

Which differences are outstanding and how long they have been outstanding.

Reconciliation statement

Print reconciliation statement

The formal reconciliation for the period, generated by the system.

Bank statement edit history

Bank statement — edit history

Whether an imported statement was altered, by whom and when.

Reversal audit trail

Reverse reconciliation with reason code and comment

Whether a completed reconciliation was reopened, and the stated justification.

The bank supplies MT940 reliably and on schedule

No file, no reconciliation. Delivery must be a standing arrangement, not an ad-hoc request.

Finance / bank relationship manager

The routing number and account number in the file match the D365 bank account exactly

The import identifies the account from the file. A mismatch causes the statement to be rejected.

Finance + Acxiom

Transactions are posted in D365 promptly

The system can only match against what exists. A payment not yet posted cannot be matched.

Accounts team

Payments carry a reference the bank passes through

Reference-based rules are far more precise than amount-and-date rules. Where no reference survives, matching accuracy drops.

Accounts team + bank

Historic unreconciled transactions are dealt with before go-live

Advanced bank reconciliation cannot be enabled on an account carrying a backlog of old unreconciled items. See section 7.

Finance + Acxiom

Someone owns the unmatched queue daily

The benefit comes from the queue staying short. An unowned queue becomes a month-end backlog again.

Finance manager

Statement input

Balances and cleared items keyed manually

Electronic statement file imported

Matching

User ticks each cleared transaction

Rule-driven automatic matching, then manual for exceptions

Statement lines held in the system

No — only the reconciliation result

Yes — every line is stored and auditable

Balance validation

None

Opening balance, closing balance and line totals validated on import

Posting from the reconciliation

Not supported

Vouchers and customer/vendor payment journals can be posted from the worksheet

Reversal

Cancel bank statement reconciliation

Reverse reconciliation, with reason code

Suitable for

Low-volume accounts with no electronic statement

Any account where the bank supplies an electronic statement

Statement validation and confirmation

A two-stage status — Validated, then Confirmed — so a statement is explicitly accepted before it is reconciled.

Voucher generation from the worksheet

Bank fees, interest and charges post straight to the general ledger from the statement line, with an offset account, dimensions and tax group.

Customer and vendor payment journals from the worksheet

Receipts and payments on the statement can be posted as payment journals and settled against open invoices without leaving the reconciliation.

Additional matching rule actions

Settle customer invoice, Generate customer payment, Generate vendor payment, Generate voucher, Clear reversal statement lines, Clear reversal company transaction.

Reverse reconciliation

A completed reconciliation can be reopened, with a reason code and comment recorded.

Mark as reconciled in batch

Large reconciliations can be completed as a background job.

Preview before posting

From version 10.0.46, matching rule results can be routed to a Pending review tab for approval before journals and vouchers are posted.

:20:

Transaction reference number

Sender's reference for the statement. Informational.

:25:

Account identification

The critical tag. The value before the separator must equal the Routing number on the D365 bank account; the value after it must equal the Bank account number. This is how the import decides which account the statement belongs to.

:28C:

Statement / sequence number

Feeds the statement identifier. Used in the duplicate-import check.

:60F: / :60M:

Opening balance

F = first (true opening balance), M = intermediate. Validated against the closing balance of the previous statement.

:61:

Statement line

One per transaction. Carries value date, entry date, debit/credit mark, amount, transaction type code and the bank reference that becomes the Document number.

:86:

Information to account owner

Free-text narrative for the preceding :61: line. Often carries the counterparty name and the payment reference that matching rules can key on.

:62F: / :62M:

Closing balance

F = final, M = intermediate. Validated against opening balance plus the sum of the lines.

:28C:00165/00001 <- block 1, sequence 1

:60F:C210729INR0,00 <- true opening balance

... statement lines ...

:62M:D210730INR494364,00 <- intermediate closing balance

:28C:00165/00002 <- block 2, sequence 2

:60M:D210730INR494364,00 <- intermediate opening, carried forward

... statement lines ...

:62F:D210730INR1010614,51 <- final closing balance

NTRF

Transfer — an electronic credit transfer, incoming or outgoing

Vendor payment, customer receipt, or bank transfer

NCLR

Cheque / clearing item

Cheque issued to a vendor, presented and cleared

NMSC

Miscellaneous

Bank charges, interest, or anything the bank has not classified

1

Enable Modern bank reconciliation

Workspaces > Feature management

2

Import the ABR MT940 ER configuration

Workspaces > Electronic reporting

3

Number sequences for bank reconciliation

Cash and bank management > Setup > Parameters > Number sequences

4

Bank transaction types

Cash and bank management > Setup > Bank transaction types

5

Cash and bank management parameters

Cash and bank management > Setup > Parameters > Bank reconciliation

6

Bank statement format

Cash and bank management > Setup > Advanced bank reconciliation setup > Bank statement format

7

Transaction code mapping

Cash and bank management > Setup > Transaction code mapping

8

Bank account — enable ABR and set the format

Cash and bank management > Bank accounts > Bank accounts

9

Reconciliation matching rules

Cash and bank management > Setup > Advanced bank reconciliation setup > Reconciliation matching rules

10

Reconciliation matching rule set

Cash and bank management > Setup > Advanced bank reconciliation setup > Reconciliation matching rule sets

11

Default rule set and reconcile after import on the bank account

Cash and bank management > Bank accounts > Bank accounts

Modern bank reconciliation

The core capability this handbook is written against.

Required

Reverse reconciled advanced bank reconciliation

Allows a completed reconciliation to be reopened.

Required

Reverse posted bank statement with new transactions

Allows a posted statement to be reversed.

Recommended

Display vouchers in bank statement

Shows the voucher against the statement line that generated it.

Recommended

Cancel bank statement reconciliation

The classic reversal route; useful as a fallback.

Recommended

Revert to simple bank reconciliation from advanced bank reconciliation

Allows an account to be switched back if required.

Recommended

Payment journal cancellation from bank reconciliation worksheet

Allows an incorrectly posted payment journal to be reversed, unsettling the invoice.

Recommended

Enable default descriptions for advanced bank reconciliation

Gives meaningful descriptions on automatically posted journals and vouchers.

Optional

Automatic importing bank statement from SharePoint folder

Needed only if statements will be collected automatically from SharePoint.

Optional

MT940

ABR MT940 format

BAI2

ABR BAI2 format

ISO 20022 CAMT.053

ABR ISO20022/camt053 format

Statement ID

Identifies the imported statement. Required where the file does not carry its own statement identifier.

Yes

Download ID

Identifies each import run.

Yes

Reconcile ID

Identifies the reconciliation worksheet.

Yes

Bank reconciliation

Identifies vouchers created during reconciliation.

Yes

Bank statement reversal

Required for voucher generation under Modern bank reconciliation.

Yes (Modern)

DEP

Deposit / receipt

NTRF (credit)

Incoming customer receipts and transfers.

PAY

Outgoing payment

NTRF (debit)

Vendor payments made by transfer.

CHQ

Cheque cleared

NCLR

Cheques presented and cleared at the bank.

FEE

Bank charges

NMSC

Requires a main account for voucher posting.

INT

Bank interest

NMSC

Requires a main account for voucher posting.

COR

Reconciliation correction

—

Main account used for penny-difference corrections.

Show statement line amount in debit/credit

Shows statement amounts in separate debit and credit columns rather than a single signed amount column.

Yes — far easier to read

Allowed date difference

The maximum number of days between a statement line and a D365 transaction that still permits a match. Cannot be exceeded by a matching rule.

Set to reflect real clearing time; start at 3–5 days

Validate date difference

Enforces the above.

Yes

Validate transaction type mapping

Requires a mapped transaction type before any match, manual or automatic.

Yes, once mapping is complete

Require manual matching when rules find multiple documents matching on amount

Where more than one D365 transaction fits, the rule stops rather than matching the first one it finds.

Yes — prevents silent mis-matching

Allow bank statement edit

Permits an imported statement to be edited, with the change recorded in edit history.

Yes, but restrict by role

Clearing journal name

The journal used when bridged transactions are cleared during reconciliation.

Required if bridging is used

Advanced bank reconciliation

Switches the account from simple to advanced reconciliation and unlocks the rest of the tab.

Yes

Statement format

Determines how statement files for this account are parsed.

MT940

Reverse debit credit mark

Flips the debit/credit sign of imported statement amounts, so that the bank's perspective aligns with the ledger's.

Yes — see section 6.1

Allowed penny difference

Maximum variance that still permits a match. 0.00 means amounts must agree exactly.

Start at 0.00; raise only if rounding differences are demonstrated

Bank name in statements

The identifier the bank uses for this account, used to pick the right account out of a multi-account file.

Set where files contain several accounts

Use bank statements as confirmation of electronic payment

Moves electronic payments from Sent to Received once matched and reconciled.

Only if electronic payment statuses are used

Time zone preference

Time zone applied to statement timestamps.

Auto

Clear bridged transactions during reconciliation

Clears bridging entries automatically when the worksheet is marked as reconciled.

Yes if bridging methods of payment are used

Reconcile after import

Validates the statement, creates the reconciliation and worksheet, and runs the default rule set automatically on import.

Yes once rules are proven

Default matching rule set

The rule set applied automatically. Set after section 3.11.

The standard rule set

Default customer payment journal

Journal used when a customer payment is generated from the worksheet.

Required for cash application

Default vendor payment journal

Journal used when a vendor payment is generated from the worksheet.

Required for cash application

Default report configuration

ER configuration used for the printed reconciliation statement.

Leave default unless a bespoke layout is required

Match with bank document

All versions

Pairs statement lines with D365 bank transactions. The workhorse rule.

Mark new transactions

Classic only

Flags statement lines with no matching document as new, for later posting from the statement page.

Generate voucher

Modern

Posts non-payment lines — bank interest, fees — directly to the general ledger.

Generate customer payment

Modern

Posts a customer payment journal from an incoming statement line, without settling invoices.

Generate vendor payment

Modern

Posts a vendor payment journal from an outgoing statement line.

Settle customer invoice

Modern

Posts a customer payment journal and settles it against the matched open invoice.

Clear reversal statement lines

All (enhanced in Modern)

Clears offsetting statement lines caused by a bank error, without matching to a D365 transaction.

Clear reversal company transaction

Modern

Clears reversed company payment journals that have no counterpart at the bank. Selected transactions must net to zero.

1

Clear bank reversals

Clear reversal statement lines

Reversal = Yes; document number and payment reference match the original line

Remove self-cancelling noise before anything else runs.

2

Match on reference

Match with bank document

Payment reference equals document number; match amount

The most reliable pairing available. Take it first.

3

Match on document number

Match with bank document

Document number; match amount

Catches cheques, where the cheque number is the reliable key.

4

Match on amount and date

Match with bank document

Match amount; match date within the allowed difference; match transaction type

The general fallback. Constrain it with transaction type so a receipt cannot match a payment.

5

Post bank charges

Generate voucher

Transaction code mapped to FEE; offset to the bank charges account

Removes routine bank-initiated debits from the exception queue.

6

Post bank interest

Generate voucher

Transaction code mapped to INT; offset to the interest income account

As above for credits.

Step 1 — define the grouping conditions

Under Modern, how multiple lines are grouped before matching — for example grouping several D365 transactions that share a document number so they can match one statement line.

Step 1 / 2 — define the matching rule

The criteria that decide whether a statement line and a bank document are the same transaction. Basic criteria cover amount, date, document number, transaction type and payment reference; additional criteria allow field-level comparisons between the statement line and the document.

Final step — filter which statement lines the rule runs against

Optional. Restricts the rule to a subset of lines, for example only those with a particular transaction code. Use this to keep a voucher-generating rule away from lines it should not touch.

On demand

Bank reconciliation worksheet > Run matching rules

During testing, and whenever a user wants to re-run rules after posting something new.

As the account default

Bank account > Reconciliation > Default matching rule set

Always set this, so users do not have to choose a rule set each time.

Automatically on import

Bank account > Reconciliation > Reconcile after import = Yes

Once rules are proven. The statement is validated, the worksheet created and the rules run without user action.

1

Import the statement

Bank statements

Statement created with status Open

2

Validate and confirm

Bank statements

Status moves to Validated, then Confirmed

3

Create the reconciliation

Bank reconciliation

A reconciliation record with a cut-off date

4

Open the worksheet

Bank reconciliation worksheet

Statement lines and D365 transactions side by side

5

Run matching rules

Bank reconciliation worksheet

Matched lines move to Matched transactions

6

Handle the exceptions

Bank reconciliation worksheet

Every remaining line dispositioned

7

Mark as reconciled

Bank reconciliation worksheet

GL updated, statement locked

8

Print the reconciliation statement

Bank reconciliation

Audit evidence for the period

The statement matches the selected bank account

The :25: values do not match the account master

Correct the routing number or account number on the bank account — see section 2.4.2

Statement currency matches account currency

An INR statement imported against a USD account

Import against the correct account

Opening balance equals the previous statement's closing balance

A statement has been skipped, or a multi-block file was split

Import the missing statement first, or re-import the file whole

Dates do not overlap another statement for the account

The same period has already been imported

Check whether the earlier statement should be removed — see section 6.2

Line dates fall between the statement from-date and to-date

A malformed file, or a line carrying a value date outside the period

Refer back to the bank

Opening balance plus line amounts equals the closing balance

The file is truncated or has been edited

Re-obtain the file from the bank; do not patch it by hand

IMPORTANT · The cut-off date decides what you are reconciling

The cut-off date determines which statement lines and which D365 bank transactions are pulled onto the worksheet. At month-end, set it to the period end date, not to today — otherwise transactions from the new period will appear on the worksheet and the reconciliation will not agree to the period-end ledger balance.

NOTE · One open reconciliation per account

A bank account can have only one open reconciliation at a time. If New does not behave as expected, check whether an earlier reconciliation is still open and either complete it or remove it.

Bank account overview

Cut-off date, currency and allowed penny difference, with matched, unmatched and ending balance totals for both the statement and the D365 side. These totals are the fastest way to see how much work is left.

Unmatched transactions tab

Two grids: bank statement lines on the left, D365 bank transactions on the right. Everything still to be dealt with.

Matched transactions tab

The same two grids for items already paired off, with an Unmatch action.

Pending review tab

Present only where the preview feature is enabled. Holds rule results awaiting approval before posting.

Bank statement transaction details

Detail for the selected unmatched statement line, including the narrative from :86:. The first place to look when deciding what an unexplained line is.

Approach

How it works

Assessment

Reverse debit credit mark parameter

A toggle on the bank account inverts imported statement amounts

Recommended. No code, survives updates, set per account.

Amended ER model mapping

A derived configuration inverts the mapping

Must be re-derived and retested on every Microsoft format update. Avoid.

Amended XSLT transformation

The legacy transformation is edited directly

Obsolete along with the XSLT route itself. Do not use.

The same statement has already been imported

No action needed — the existing statement is the one to reconcile.

A multi-block file was split and imported in pieces

Remove the partial statements and re-import the file whole. See section 2.4.3.

The bank has reissued a corrected statement for a period already imported

Reverse the reconciliation, reverse and delete the original statement, then import the corrected file.

Two daily files genuinely cover overlapping periods

Refer back to the bank. This indicates a problem with how the statements are being generated.

Option

Posting date

Recommendation

Generate voucher (Modern)

Accounting date is entered in the dialog

Use this. It is the reason to have Modern enabled.

Mark as new + Distribute amounts

System date only

Avoid where the period matters

Post through a general journal, then match on the next run

Fully controllable

Acceptable fallback where Modern is unavailable

Cheque issued, not yet presented

Leave unmatched. It carries forward and matches when the bank clears it. This is a genuine reconciling item and should appear as such on the reconciliation statement.

Post-dated cheques

Where the journal entry is posted only once the bank has confirmed receipt of funds, no reconciling item arises. Where entries are posted on receipt of the instrument, they will sit unmatched until clearance.

Payment posted in D365 that the bank has rejected

The payment must be reversed in D365. It will never appear on a statement.

Entry held or blocked at the bank for any reason

Leave unmatched and track it. If the bank ultimately does not process it, reverse the D365 entry.

1

Debit/credit orientation inverted on import

Resolved

Set Reverse debit credit mark to Yes on the bank account

2

Overlapping statement dates rejected on validation

By design

Import files whole; do not split multi-block files

3

Multi-date file upload failure (2023)

To re-test

Re-test on the current build; documented as supported

4

Posting date fixed to system date on new transactions

Resolved

Use Generate voucher with an accounting date

5

Subledger not supported as offset on new transactions

Resolved

Use Generate payment journal instead

6

Cannot enable ABR on an account with unreconciled history

Open — cutover

Cut-off date clearance or new bank account master

7

Scenarios where D365 entries precede bank confirmation

Open — ODUS

List awaited from the business

Approach

Agree a cut-off date. Reconcile or clear all transactions up to it using the existing process, then enable advanced reconciliation from the day after.

Create a new bank account master, enable advanced reconciliation on it, and direct new transactions there. The old account is run down and closed.

Advantages

One continuous bank account. History and reporting stay in one place. No change to bank details in masters or payment files.

No dependency on clearing the backlog. Go-live date is not held hostage to historic items.

Disadvantages

Requires the backlog to be cleared, which may be substantial and may itself hold up go-live.

Two accounts to manage during transition. Vendor and customer bank details, payment formats and integrations may reference the old account.

Best when

The backlog is small and can realistically be cleared.

The backlog is large, old, or cannot be cleared without write-offs.

1

Modern bank reconciliation and supporting features enabled

Acxiom

2

ABR MT940 ER configuration imported and validating without error

Acxiom

3

Number sequences assigned for all bank reconciliation references

Acxiom

4

Bank transaction types created, with main accounts where needed

Finance + Acxiom

5

Cash and bank management parameters set, including manual matching on multiple hits

Finance + Acxiom

6

Bank statement format created with Generic electronic import format ticked

Acxiom

7

Transaction code mapping completed per bank account

Finance + Acxiom

8

Routing number and account number verified against the :25: tag for every account

Finance

9

Reverse debit credit mark set and verified on a real statement

Acxiom

10

Matching rules built, activated and tested individually

Acxiom

11

Matching rule set assembled in the agreed sequence

Acxiom

12

Default customer and vendor payment journals set, without approval workflow

Finance + Acxiom

1

Import the supplied two-day multi-block MT940 file

Imports as a single statement; balances validate

2

Import a statement for the wrong account

Rejected at validation with an account mismatch

3

Import the same statement twice

Second import rejected as a duplicate

4

Run each matching rule individually against a real statement

Matches only what it should; no false positives

5

Run the full rule set

Auto-match rate recorded as a baseline

6

Two D365 transactions with the same amount and date

Routed to manual matching, not matched arbitrarily

7

Generate a voucher for a bank charge with a back-dated accounting date

Posts to the intended period

8

Generate and settle a customer payment from a statement line

Journal posts; invoice settles

9

Mark as reconciled with an unmatched cheque outstanding

Completes; the line carries to the next worksheet

10

Reverse a completed reconciliation with a reason code

Reopens; reason recorded in history

11

Print the reconciliation statement

Agrees to the ledger bank balance at the cut-off date

1

MT940 delivery agreed with the bank as a standing arrangement

Finance

2

Cutover approach agreed — Option A or Option B

Finance + Acxiom

3

Historic unreconciled items cleared, or new account masters created

Finance

4

Daily ownership of the unmatched queue assigned by name

Finance manager

5

Users trained on exception handling, not just the happy path

Acxiom

6

Security roles set — who may reverse, who may edit a statement

Finance + Acxiom

7

Period close checklist updated to reference the reconciliation statement

Finance

ODUS-01

Cutover approach — clear to a cut-off date, or create new bank account masters

Finance

Advanced reconciliation cannot be enabled. Blocks go-live.

ODUS-02

List of scenarios where entries are posted in D365 before bank confirmation, excluding post-dated cheques

Finance

Volume of permanently unmatched D365-side items unknown; rules cannot be tuned for them.

ODUS-03

Confirmation of which bank accounts are in scope, and whether all use MT940

Finance

Configuration is per account. An account on a different format needs a different ER configuration.

ODUS-04

Whether the bank can deliver to SharePoint or SFTP rather than e-mail

Finance + bank

Determines whether import can be fully automated or stays manual.

ODUS-05

Chart of accounts mapping for bank charges, interest and reconciliation corrections

Finance

Voucher-generating rules and penny-difference corrections cannot be configured.

ODUS-06

Allowed date difference and allowed penny difference tolerances

Finance

Set too tight, automation underperforms; too loose, mis-matching risk.

ODUS-07

Re-test of multi-date file import on the current build

Acxiom

A historic limitation may or may not still apply.

ODUS-08

Whether electronic payment status confirmation is in scope

Finance

Determines the "Use bank statements as confirmation of electronic payment" setting.

Pilot

One bank account, rules run on demand, manual import. Reconcile in parallel with the existing spreadsheet.

Two consecutive periods reconciled with results agreeing to the manual reconciliation.

Tune

Review every manual match and every false positive. Adjust rules and tolerances.

Auto-match rate stable and understood; exception categories known.

Extend

Roll out to the remaining bank accounts. Retire the parallel spreadsheet.

All in-scope accounts reconciling through D365.

Automate

Enable Reconcile after import, then scheduled import from SharePoint or SFTP.

Statements processing without user intervention up to the exception queue.

:20:

Transaction reference number

Header

Sender's reference for the statement message.

:25:

Account identification

Header

Routing number and bank account number, separated by /. Must match the D365 bank account. May carry a currency suffix which is not part of the account number.

:28C:

Statement number / sequence number

Header

Statement number, optionally followed by / and a sequence number for continued blocks.

:60F:

Opening balance — first

Header

D/C mark, value date (YYMMDD), currency, amount. The true opening balance of a statement.

:60M:

Opening balance — intermediate

Header

Opening balance of a continuation block, carried forward from the preceding :62M:.

:61:

Statement line

Line

Value date, entry date, D/C mark, amount, transaction type code, bank reference, account servicing reference.

:86:

Information to account owner

Line

Free-text narrative for the preceding :61:. Carries counterparty name and payment reference.

:62F:

Closing balance — final

Footer

Final closing balance. Validated against opening balance plus line amounts.

:62M:

Closing balance — intermediate

Footer

Closing balance of a block that continues into the next block.

:64:

Closing available balance

Footer

Optional. Not used by the reconciliation.

:65:

Forward available balance

Footer

Optional. Not used by the reconciliation.

:61:2107300730D5000,00NCLRNONREF//02-0I-00052736

| | || | | |

| | || | | +-- Account servicing reference

| | || | +-------- Reference for the account owner

| | || +--------------- Transaction type code (NCLR)

| | |+----------------------- Amount (5000,00 — comma is the decimal)

| | +------------------------ Debit/Credit mark (D or C)

| +----------------------------- Entry date (MMDD)

+----------------------------------- Value date (YYMMDD)

{1:F01BNPAINBBAXXX0000000000}{2:I940EMAILMT9X40DN}{3:{108:SWIFTCLIENT}}{4:

:20:SWIFTCLIENT

:25:0906/511379300422INR

:28C:00165/00001

:60F:C210729INR0,00

:61:2107300730D5000,00NCLRNONREF//02-0I-00052736

G STAR SERVICES

:86:/TYPE/649/REM CHEQUE

:61:2107300730C61040,00NTRFN211210686344607//46-XX-ZB09OLPA

SERVOTECH POWER LTD

:86:/TYPE/776/RCVD TRF//CODE/IN/000//ORDP/027861900000963/YES BANK/

SERVOTECH POWER LTD//XUTR/N211210686344607/

... further lines ...

:62M:D210730INR494364,00

-}

{1:F01BNPAINBBAXXX0000000000}{2:I940EMAILMT9X40DN}{3:{108:SWIFTCLIENT}}{4:

:20:SWIFTCLIENT

:25:0906/511379300422INR

:28C:00165/00002

:60M:D210730INR494364,00

:61:2107300730C105599,49NTRFN211211582134140//46-XT-ZB09OANA

STT GLOBAL DATA CENTRES INDIA P L

:86:/TYPE/776/RCVD TRF//CODE/IN/000//ORDP/00030310013273/HDFC BANK/

... further lines ...

:62F:D210730INR1010614,51

}

Enable features

Workspaces > Feature management

Import the ER configuration

Workspaces > Electronic reporting > Microsoft > Repositories > Dataverse

Bank statement format

Cash and bank management > Setup > Advanced bank reconciliation setup > Bank statement format

Matching rules

Cash and bank management > Setup > Advanced bank reconciliation setup > Reconciliation matching rules

Matching rule sets

Cash and bank management > Setup > Advanced bank reconciliation setup > Reconciliation matching rule sets

Transaction code mapping

Cash and bank management > Setup > Transaction code mapping

Bank transaction types

Cash and bank management > Setup > Bank transaction types

Number sequences

Cash and bank management > Setup > Cash and bank management parameters > Number sequences

Reconciliation parameters

Cash and bank management > Setup > Cash and bank management parameters > Bank reconciliation

Bank accounts

Cash and bank management > Bank accounts > Bank accounts

Import / validate a statement

Cash and bank management > Bank statement reconciliation > Bank statements

Reconcile

Cash and bank management > Bank statement reconciliation > Bank reconciliation

Clear bridged transactions

Cash and bank management > Periodic tasks > Clear bridged transactions

Investigate a failed import

Workspaces > Data management > Job history > Execution details > View execution log

1

Retrieve yesterday's MT940 file

One file per account. Do not split or edit it.

2

Import statement

Statement created with status Open.

3

Validate

Passes. If not, check :25: against the bank account first.

4

Confirm

Status moves to Confirmed.

5

Open or create the reconciliation

Cut-off date is correct — period end at month-end, not today.

6

Open the worksheet

Note the unmatched totals on both sides.

7

Run matching rules

Unmatched totals fall. Note anything matched that looks wrong.

8

Work the unmatched queue

Every line: match, post, clear as a reversal, or consciously leave open.

9

Check ageing

Nothing unmatched older than a month without an explanation.

10

Mark as reconciled

Only when every line has been dealt with deliberately.

11

Month-end only — print

Reconciliation statement filed with the close pack.

Import fails with no clear error

The detail is in the Data management log, not on screen

Workspaces > Data management > Job history > Execution details > View execution log

Statement imports against no account

:25: does not match the bank account master

Compare both halves of :25: with Routing number and Bank account number; check leading zeros

Import format configuration field is not available

Generic electronic import format is not ticked on the bank statement format

Tick it and select the ABR MT940 format

Validation fails on opening balance

A statement has been skipped, or a multi-block file was split

Import the missing statement, or re-import the file whole

Validation fails on closing balance

The file is truncated or has been edited

Re-obtain the file from the bank. Do not correct it by hand

Validation fails on overlapping dates

The period has already been imported

Check for an existing statement covering the same dates

Statement lines appear on the wrong side

Reverse debit credit mark is not set

Set it to Yes on the bank account and re-import

Rules match almost nothing

Criteria too tight, or transaction type mapping is enforced but incomplete

Run rules individually to isolate which one fails; check transaction code mapping

Rules match the wrong transaction

Several D365 transactions share amount and date

Enable Require manual matching when rules find multiple documents matching on amount

Generate payment journal is unavailable

No default journal on the bank account, or the journal has an approval workflow

Set a default customer/vendor payment journal without workflow

Generate voucher is unavailable

Modern bank reconciliation is off, or the Bank statement reversal number sequence is missing

Enable the feature and set the number sequence

Cannot enable advanced bank reconciliation

The account carries unreconciled transactions

Clear to a cut-off date or use a new bank account master — section 7.1

Reverse reconciliation is greyed out

The reconciliation is not the most recent for the account

Reverse in reverse chronological order, most recent first

Posting date on a new transaction is wrong

Distribute amounts always uses the system date

Use Generate voucher with an accounting date instead

Advanced bank reconciliation overview

learn.microsoft.com/en-us/dynamics365/finance/cash-bank-management/advanced-bank-reconciliation-overview

Advanced bank reconciliation setup process

learn.microsoft.com/en-us/dynamics365/finance/cash-bank-management/configure-advanced-bank-reconciliation

Set up bank reconciliation matching rules

learn.microsoft.com/en-us/dynamics365/finance/cash-bank-management/set-up-bank-reconciliation-matching-rules

Set up the import using Electronic reporting

learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/import-bai2-er

Reconcile bank statements using advanced bank reconciliation

learn.microsoft.com/en-us/dynamics365/finance/cash-bank-management/reconcile-bank-statements-advanced-bank-reconciliation

Cash application in advanced bank reconciliation

learn.microsoft.com/en-us/dynamics365/finance/cash-bank-management/apply-cash-adv-bank-rec

Generate a voucher in advanced bank reconciliation

learn.microsoft.com/en-us/dynamics365/finance/cash-bank-management/vouchers-adv-bank-rec

Clear reversal bank statement transactions

learn.microsoft.com/en-us/dynamics365/finance/cash-bank-management/clear-reverse-bank-stmt-trx

Clear reversal company transactions

learn.microsoft.com/en-us/dynamics365/finance/cash-bank-management/clear-reverse-comp-trans

Clear bridging payments

learn.microsoft.com/en-us/dynamics365/finance/cash-bank-management/clear-bridging-pyts-adv-bank-rec

Reverse a bank reconciliation

learn.microsoft.com/en-us/dynamics365/finance/cash-bank-management/bank-reco-reversal

Bank journal composite entity upgrade

learn.microsoft.com/en-us/dynamics365/finance/dev-itpro/upgrade-bank-journal-composite-entity