Introducing reconciliation with Continia Banking

Reconciling book entries with bank statements is an essential task in financial management, but it can also be demanding. The process often involves moving back and forth between bank statements and the general ledger, while making manual adjustments along the way.

Continia Banking adds functionality to Microsoft Dynamics 365 Business Central that makes reconciliation more efficient. You can import bank statements and have transactions automatically matched against your books. Entries that cannot be matched automatically are presented for review, so you can complete reconciliation with only a few manual steps.

Continia Banking builds on the reconciliation features already available in Business Central, extending them with additional rules, matching options, and filtering.

Reconciliation options

Continia Banking supports two reconciliation methods:

  1. Bank Account Reconciliation - this thorough method reconciles imported bank account statement files directly against bank account ledger entries and ensures reconciliation is based on actual bank data. For more information, refer to the Bank Account Reconciliation articles.
  2. Payment Reconciliation Journal - this reconciliation solution grants you more authority. With this option, you can import bank account statement files. Transactions are posted directly on the bank or on a G/L account, depending on specific preferences. In the payment reconciliation journal, users can match transactions according to their needs. You can apply various entries, and the system reconciles bank account ledger entries during the posting process. For more information, refer to the Payment Reconciliation Journal articles.

The matching procedure

Continia Banking replaces Business Central’s standard matching procedure with an extended, rule-based approach. Before starting the matching procedure you must activate Continia Banking and set the necessary permissions.

Ledger entry filtering

Before matching, ledger entries can be limited by:

  • Open entries only
  • Date range
  • Currency compatibility

Matching rules and methods

  1. Bank transaction code rules
    • Matches transactions based on transaction codes provided by the bank.
    • Supports country-specific code standards and templates.
    • Assigns account types automatically with a high level of accuracy.
  2. Search rules
    • Uses user-defined, pattern-based rules.
    • Runs in three phases: always-apply, no-proposals, and proposal refinement.
    • Search field templates allow for more complex configurations.
  3. Related party matching - matches transactions using counterparty information:
    • Configured related party rules.
    • Bank account/IBAN validation.
    • Name and address matching, both fuzzy and exact.
    • Matching against customer/vendor master records.
  4. Direct debit processing
    • Handles direct debit transactions and manages returns, reversals, and reapplications.
    • Supports multiple formats and country-specific requirements.
  5. Reference ID Matching - matches using standardized payment identifiers such as:
    • End-to-end transaction IDs.
    • Payment information IDs.
    • Batch IDs for bulk payments.
  6. Payment reference rules
    • Extracts and validates payment references from transaction text.
    • Supports formats such as KID, FIK, and OCR numbers.
    • Can apply context-sensitive filtering based on transaction codes.
  7. Document number matching
    • Extracts and matches document numbers from transaction descriptions.
    • Supports configurable patterns and external document numbers.
  8. Advanced search rule processing - runs search rules in two rounds:
    • First for transactions without proposals.
    • Second for transactions with proposals, refining or offering alternatives.
  9. Split rules
    • Splits a single bank transaction across multiple accounts or cost centers.
    • Supports percentage- and amount-based splits.
    • Creates additional reconciliation lines for complex transactions.
  10. Account balance matching
    • Matches payments against open account balances.
    • Includes tolerance handling for partial matches.
  11. Date and amount matching
    • Matches transactions based on identical posting dates and amounts.

After the rules have been applied, payment application proposals can be posted automatically.

The basics of matching accounts
Working in the Payment Reconciliation Journal
Document no. matching with and without prefix/suffix
The payment reference rule section