Introducing Advanced Matching Rules in Microsoft Dynamics 365 Business Central  

Bank reconciliation no longer has to be a glorified manual matching game. With the brand-new edition of Advanced Matching Rules, you can automatically match bank transactions to accounts payable, accounts receivable, and general ledger entries.  

These new editions are an enhancement to SKsoft’s Bank Reconciliation module. This improvement is embedded directly into Business Central and can handle a variety of business types. By having robust configuration options, businesses can run their processes the way that they like WITHOUT time consuming reconciliation tasks.  

There are lots of things that can disrupt the flow of reconciliation. For example, discrepancies in timing are often unavoidable. You may issue a check, but it could take days for that check to be cashed and appear on the bank statement leaving an un-reconciled amount on the ledger with no indication of when it can be matched to its appropriate amount.  

On top of that, medium to large companies may be reconciling a large volume of transactions per day making the task more time-consuming and complicated. A larger quantity leaves more room for error and fraud to slip through the cracks. In the midst of all this, unidentified transactions such as bank fees, direct debits, or interest need to be investigated and recorded. Being able to avoid these types of issues is not only a time saver but can leave time that is freed up to complete other activities during the workday. 

With matching rules, companies can automatically reconcile these statements from a single bank or across multiple banks the moment they populate. 

At the core of these enhancements is the flexibility to create Customizable Match Rules, a feature that acknowledges the diversity of reconciliation scenarios that different organizations face. Whether your needs involve many-to-one matching, where multiple transactions are matched against a single bank statement entry, or one-to-many matching, which allows a single transaction to reconcile with multiple entries, users can handle these tasks all inside of BC. This tailored approach not only simplifies the reconciliation process but also significantly reduces the potential for errors, ensuring that financial records are accurate and reliable. 

Beyond the capability to match transactions in various configurations, users have access to customization options that extend to defining the parameters and conditions that trigger a match. This means you can set up rules that precisely fit the nature of your transactions and banking activities. Whether it’s matching based on transaction amounts, dates, or even custom identifiers unique to your business, SKsoft provides the flexibility to accommodate your organization’s unique bank reconciliation scenarios. 

Another productive enhancement is the ability to add and apply Dimensions as needed, which sets a cadence for how missing transactions are handled. With this feature, transactions that previously might have gone uncategorized can now be automatically coded based on Business Central (BC) dimensions. This functionality allows for a more granular, detailed, categorization of transactions, facilitating an accurate reflection of financial activities in the sub-ledger. Being able to add dimensions simplifies the application in BC, making the categorization process not just efficient but effortless. Users can now ensure optimal transaction categorization with minimal effort, which can streamline financial reporting and analysis processes. 

Setting up certain dimensions such as having a dimension for each department will allow you to better assign transactions to a certain department. For example, a use case could be setting up a dimension to track activity for a sales/presales department. Having these specific parameters set up enables individuals to match transactions more easily so that bank statements and the general ledger match (or different subledgers that your organization may have).  

Having dimensions in place also makes reporting easier and more detailed.  

When creating a rule, it is critical to use a rule confidence scale. There are three types of match confidence: 

A High match confidence level is the gold standard, signifying that the match is extremely confident in the match’s accuracy. This level is typically applied when the system identifies a transaction that matches all the predetermined criteria, with a 100% accuracy guarantee. Transactions with high match confidence move through the reconciliation process swiftly, requiring no manual intervention  

On the other hand, a Medium match confidence is awarded when the system acknowledges the potential for discrepancies, such as variances in transaction number IDs or limited historical data on similar transactions. This setting indicates that while some transactions nearly meet all the criteria, there’s a slight uncertainty that warrants a closer look. Because the match is not 100% accurate the match still needs human oversight.  

Lastly, the Low match confidence level is an alert to users that the system has detected significant errors or discrepancies, which could impact the accuracy of the match. This setting is crucial for maintaining the integrity of financial records, as it highlights transactions that require manual review and correction. Flagging these issues early ensures that individuals can address potential errors proactively, safeguarding against financial discrepancies.  

High confidence transactions are ideal. Medium confidence is optimal. And Low confidence matches are not ideal for reconciling but can be helpful as they reveal possible fraudulent or unmatched statements.   

Bank Reconciliation should be smooth and predictable. The newest enhancements in the Bank Statement Integration module in Business Central make this goal attainable and reachable by turning it into an automated function. The introduction of Advanced Matching Rules ensures that the reconciliation process is not a manual and repetitive task.  

SKsoft’s latest update revolutionizes financial reconciliation by enabling the customization of dimensions for detailed transaction categorization, ensuring accuracy and reducing fraud risks. Additionally, the rule confidence designation feature systematizes transaction evaluation, optimizing oversight by prioritizing matches based on accuracy, streamlining financial reporting, and making reconciliation efficient and straightforward. 

By automating the reconciliation process with such precision and flexibility, businesses can now focus on their core operations, confident in the knowledge that their financial records are accurate, up-to-date, and reflective of their actual financial health. This advancement not only optimizes efficiency but also transforms bank reconciliation into an entirely manageable task.  

With 25+ years of experience in the Dynamics channel, SKSoft has extensive expertise in creating and implementing solutions that fill the banking, treasury, and financial automation gaps in Microsoft ERP systems. We pride ourselves in having solutions that can scale and work globally across any industry. SKsoft is a certified Microsoft business applications partner and all our solutions are approved by Microsoft. Contact us today at sales@sksoft.com to see why businesses that range from small to global enterprise level use SKsoft.