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The advanced bank reconciliation feature in Dynamics 365 F&O makes reconciliation simpler and more efficient. It allows users to quickly and easily import bank statements and have them automatically reconciled within bank transactions. This eliminates the need to manually check off each transaction against the statement, which can be a time-consuming task. Dynamics 365 F&O supports three bank statement formats: ISO20022, MT940, and BAI2. The setup for bank statement import varies, depending on your electronic bank statement format.
In this blog, we will discuss how to set up and import a BAI2 format bank statement. First-hand experience has led us to the conclusion that the previous method is deprecated by Microsoft itself. The import through electronic reporting is very recent and not quite widely discussed on other forums. Therefore, the below-defined method is more detailed and efficient.
Advanced Bank Statement Format – Setup BAI2
First, to set up a BAI2 Bank Statement format, import the latest version of the electronic statement model from the Microsoft repositories. The process to do the following is shown below.
then Go to workspaces > electronic reporting. Click on the Repositories link on the Microsoft provider shown in Figure 1.
In the repositories page select Global and Click on Open as shown in Figure 2.
then, Click the blue link in the dialogue box to create a connection. After a connection is established then click OK.
A configuration repository list is opened once the connection has been created. This is the most important and key step.
From the list, go to Advance bank reconciliation statement model > ABR BAI2 format and click on import as shown below in Figure 4.
Once the import is completed, then the Bank statement format is defined.
To create a new Bank statement format go to modules > cash and bank management > advance bank reconciliation setup > bank statement format. On this page create a new format and define the import format configuration as shown in Figure 5 below.
ABR Setup on a Bank Account
Once you have created the bank statement format, now map it to the bank accounts for which you want to import the statement.To do so open the bank account card from modules > cash and bank management > bank accounts. In the Reconciliation tab, do the necessary setup on the bank account card, as shown in Figure 6 below.
- Select the Advance bank reconciliation option.
- Select the statement format that is created above in Figure 5.
- To automatically match transactions as you import a bank statement, select the reconcile after import option. Otherwise, you will need to run the reconciliation process manually.
- To define which rules will be used to match transactions when importing a bank statement, create a default matching rule set. (We will discuss how to create and define matching rules in another blog post.)
Import Advanced Bank Statement for BAI2
Finally, you have completed all of the above setup, you can now import a bank statement.
- To import a bank statement go to modules > cash and bank management > bank statements.
- Click on import on the top ribbon and select the following options as shown below in Figure 7.
- If you have only set up one bank account (USMF OPER), import a file that contains data only for that bank account. Therefore, do not select the import statement for multiple bank accounts. However, if your file contains data for multiple bank accounts, set up advanced bank reconciliation on those bank accounts and select this option.
- Select the bank account whose statement you are importing.
- The statement format will be selected automatically that has been defined on the bank account.
- To import a bank statement, browse and upload the statement file.
- Automatically match transactions as they are imported, which is the default setting for the bank account.
- Click on OK to successfully import the bank statement.
BAI2 Sample File
Next, reconcile the imported bank statement with the company's financials. This step ensures that the bank statement and the company's financial records match.