Introduction
In any organization the bank reconciliation is a critical process in financial operations, ensuring that your internal records match your bank's statements. In the latest version Microsoft Dynamics 365 Finance and Operations (D365FO), the Advanced Bank Reconciliation can be done via Elecroic reporting (ER), this feature allows you to automate this process using formats like MT940, BAI2, and ISO20022. This post I will walk you through setting up MT940 reconciliation using Electronic Reporting (ER).
Before we begin, please make sure you have System Administrator or Electronic Reporting Developer Role.
Let’s start configuration now,
Import MT940 ER Configuration
1. Navigate to Workspaces > Electronic Reporting.
2. Click on Configuration Providers and select Microsoft.
3. Open the Global repository (or Dataverse if configured).
4. Search for and import the following configurations (Always import the latest version of each configuration)
- Advanced bank reconciliation model
- MT940 format mapping
- MT940 format (TXT)
Set Up Bank Statement Format
1. Go to Cash and Bank Management > Setup > Advanced bank reconciliation setup > Bank statement format.
2. Click New and fill in:
- Statement format: MT940
- Name: MT940 Format
- Generic electronic import format: Checked
- Import format configuration: Select the imported MT940 ER format
Configure Bank Account for Reconciliation
1. Navigate to Cash and Bank Management > Bank accounts.
2. Select the bank account you want to configure.
3. Under the Reconciliation tab:
- Set Advanced bank reconciliation to Yes (You cannot undo this step, so choose the right record)
- Choose the Statement format as MT940
Test the Import Process
1. Go to Cash and Bank Management > Bank statement reconciliation > Bank statements.
2. Click Import statement.
3. In the dialog:
- Select the Bank account
- Choose Statement format: MT940
- Upload your MT940 sample file
- Click OK
If configured correctly, the transactions will be imported and ready for reconciliation.
Troubleshooting Tips
- Transformation Errors: Ensure the MT940 file matches the expected structure. You can validate using the ER designer.
- No Transactions Imported: Check if the bank account number in the file matches the one in D365FO.
- Post-DB Refresh: Re-import ER configurations and re-link them in the import project.
