Namith Hosmane's Blog

Cash and bank management in general:

A cash and bank management is a method of effectively tracking cash inflows and outflows to meet the payment obligations, plan the future payments, and maintain adequate business stability. Usually treasury or cash application team in companies manage cash and bank. The high level process involves maintaining bank accounts and its financial instruments (Checks, Deposit slips, Promissory notes and Bills of exchange) and reconciling bank statements with transactions recorded in the books of accounts.

Cash and bank management in D365 finance?

Cash and bank management in D365 finance provides all the capabilities from maintaining bank accounts and its financial instruments to automating bank reconciliation process. Please read through blog below for more details

Key configurations

Bank groups and Check layouts:

Bank groups are used when companies maintain several bank accounts from the same bank. When the new bank account is created and bank group is entered, the default information like address and routing number is automatically defaulted.

Check layouts can be configured for each bank account based on the companies banks requirement and policies. The two methods which can be changed if the company changes its policy for layouts ( Details from Microsoft docs).

• Fixed – Use this method when you have pre-printed checks. Before you can use checks for payment, they must be created by selecting Check numbers from the Setup tab on the Action Pane in the Bank accounts page.
• Free – Use this method when you do not have pre-printed checks. Check numbers are automatically proposed when you use checks for payment.

MICR(Magnetic ink character recognition code) can used to print own checks and to verify legitimacy of paper documents.

Please read the blog below for more details:

Configure banks and bank check layout – Learn | Microsoft Docs

Bank transaction type:

Bank transaction types are used to segregate the different types of bank transactions like deposits, payments, fees, Transfer wire etc. The bank transaction types are also used during the reconciliation process to match the bank transaction code from statement to transactions posted in D365 finance.

Please read the blog below for more details:

Understand bank transaction types and groups – Learn | Microsoft Doc

Key functionalities

Advance bank reconciliation:

Advanced Bank Reconciliation feature introduced in AX 2012 facilitates automatic bank reconciliation by importing the bank statements and reconcile them with bank transactions posted in D365. This feature is being used extensive and most popular across all the industries, it reduces lot of human effort and helps the organization to use the resources effectively.

Here some useful links for more details on advance bank reconciliation,

Reconcile bank statements by using advanced bank reconciliation – Finance | Dynamics 365 | Microsoft Docs

Set up bank reconciliation matching rules – Finance | Dynamics 365 | Microsoft Docs

SETUP MATCHING RULES – ADVANCE BANK RECONCILIATION – Namith Hosmane’s Blog

Cash flow forecasting

D365 finance provides the ability with indirect method of cash flow forecasting to analyze the upcoming cash flows which helps in estimating the future cash needs. To key tasks to obtain cash flow forecasting is,

1. To identify all the cash or cash equivalent ledger accounts
2. To configure forecast behavior of transaction that affect company’s liquidity accounts.

Cash flow forecasting can be integrated with General ledger, Accounts payable, Accounts receivable, Budgeting, and Inventory management.  The forecasting process uses transaction information that is entered in Finance, and the calculation process forecasts the expected cash impact of each transaction.

Please refer to the below articles for more information on cash flow forecasting

Understand cash flow forecast and reports – Learn | Microsoft Docs

Configure cash flow forecasting – Learn | Microsoft Docs

Know How To Forecast Cash flow In D365 – Namith Hosmane’s Blog

Key Reporting

Checks

An inquiry form which provides the list of all the checks with status. It also provides the ability to reverse the check.

Print statement

The report provides the reconciliation summary and details of a particular reconciliation journal as of date. It includes the number of reconciled bank transactions, total amounts for transactions, and a summary of all transactions

Payment summary by date report