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Set up bank reconciliation matching rules

This article explains how to set up reconciliation matching rules and reconciliation matching rule sets to help with the bank reconciliation process. Reconciliation matching rules are a set of criteria that filter bank statement lines and bank document (transaction) lines during the reconciliation process.

Use reconciliation matching rules and reconciliation matching rule sets to help with the bank reconciliation process. A reconciliation matching rule is a set of criteria that filter bank statement lines and Dynamics 365 Finance bank transaction lines during the reconciliation process. Use the Reconciliation matching rules page to set up the reconciliation matching rules. You can set up more than one matching rule and then create a reconciliation matching rule set on the Reconciliation matching rule sets page.

Note

Use bank reconciliation matching rules if you reconcile an electronic bank statement by using advance bank reconciliation.

On the Reconciliation matching rules page, select which actions and selection criteria to use when the matching rule runs. In the Actions field group, select the action that the matching rule performs during the reconciliation process.

By default, matching rules match to the first bank document (transaction) that meets the matching rule criteria. If multiple bank documents (transactions) meet the rule criteria, turn on the parameter to require manual matching by going to Cash and bank management > Setup > Cash and bank management parameters > Bank reconciliation > Require manual matching when advanced bank reconciliation matching rules find multiple documents that match on amount.

To create a bank reconciliation matching rule, follow these steps:

  1. Go to Cash and bank management > Setup > Advanced bank reconciliation setup > Reconciliation matching rules.
  2. Select New and enter a name and description.
  3. In the Actions field group, choose the action the rule performs.
  4. In the Matching type field, choose how records are matched.
  5. Define the selection criteria on the step FastTabs that appear for your chosen action.
  6. Select Save.
  7. Select Activate to activate the reconciliation matching rule.

Note

Modern-only actions require the Modern bank reconciliation feature and an imported statement. Payment actions also need default customer or vendor payment journals on the bank account, and Generate voucher needs bank transaction types plus the Bank statement reversal reference number sequence.

All actions

Action Availability What it does Setup steps or key fields
Match with bank document Base Matches bank statement lines to Finance bank transactions. Step 1 – Define the matching rule Which statements match to which transactions. Step 2 (optional) – Filter which statement lines the rule runs against.
Mark new transactions Base (not available when Modern is on) Flags statement lines with no matching bank document as new transactions. Step 1 – Find statement lines. Step 2 – Find finance and operations if none found, the line is marked new.
Generate customer payment Modern Posts a Customer payment journal from a statement line (incoming customer payment). Worksheet Generate payment journal: Payment type = Customer, Customer account, Method of payment, Accounting date, Bank transaction type, Dimensions, Tags. Generate payment (post only) or Settle transactions (also settle invoices).
Generate vendor payment Modern Posts a vendor payment journal from a statement line (outgoing vendor payment). Same Generate payment journal flow with Payment type = Vendor and Vendor account.
Settle customer invoice Modern Generates a customer payment journal and settles the matched open customer or project invoice. Action = Settle customer invoice. Step 1 – Find statement lines to generate customer payment journals. Step 2 – Match open invoices. Step 3 – Customer payment journal parameters: Default method of payment, Default bank transaction type, Accounting date, Financial dimensions, and Apply cash discount.
Generate voucher Modern Posts nonpayment statement lines (bank interest, fees) directly to the general ledger. Action = Generate voucher. Find statement lines to generate voucher – posting criteria. Voucher parameters – Accounting date, Bank transaction type, Offset account, Description, Sales tax group / Item sales tax group (if applicable), Financial dimensions.
Clear reversal statement lines Base (enhanced in Modern) Clears offsetting reversal bank statement lines caused by a bank error, without matching to a company transaction. Step 1 – Find reversal statement lines - the Reversal line = Yes. Step 2 – Find original statement lines - the Document number and Payment reference must match. Step 3 optional – Find bank transactions.
Clear reversal company transaction Modern Clears reversed company payment journals that have no matching record at the bank. Step 1 – Find reversal company transactions. Step 2 – Find original company transactions - The Transaction type, Payment reference, Document type must match. There's an option to require manual matching. The selected transactions must net to zero.

Set up bank reconciliation matching rule sets

A matching rule set is a group of reconciliation matching rules that run in sequence during the bank reconciliation process. Instead of running each rule one at a time, bundle them into a set so the whole sequence executes in one pass.

To create a matching rule set, follow these steps:

  1. Go to Cash and bank management > Setup > Advanced bank reconciliation setup > Reconciliation matching rule sets.
  2. Select New and enter a name and description for the set.
  3. Add the matching rules to the set in the order they should run - the set executes its rules top to bottom.
  4. Select Save.

Put the rule set to work

You can run a set in three ways:

How it runs Where
As the account default On the Bank account → Reconciliation FastTab, set it as the Default matching rule set.
Automatically on import With Reconcile after import = Yes, the account's default matching rule set runs as soon as a statement is imported.
On demand On the Bank reconciliation worksheet, select Run matching rules, and then choose the rule set (or a single rule).

For more information about how matching rules are applied during reconciliation, see:

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