I still remember the first time in 2000 when I saw the bank reconciliation module for Navision, the predecessor of Dynamics NAV. Navision was a Danish product and was relatively new to North America. It was pretty obvious that European companies paid their suppliers differently than those in North America. While most companies in North America still pay their suppliers by check, European companies, even back then, almost exclusively made payments be making deposits directly to the bank accounts of their suppliers. The bank reconciliation module in Navision worked from the assumption that all payments had cleared the bank account instead of the other way around. Electronic payments cleared the bank immediately and made the bank reconciliations relatively simple to calculate.
North America is now catching up to Europe and more companies are wanting the capability to pay their suppliers with electronic funds transfers. There are a significant number of benefits for both parties including no more bad checks, faster payments, negotiated payment discounts for faster payments, mail strikes don’t affect cash flow the same, no need for pre-printed checks, better security as custody of blank cheques is not an issue, checks no longer have to be signed, and more.
Dynamics NAV offers electronic payments for both suppliers and employees. While the base payments module ships with a limited number of bank formats, we have been able to quickly test new formats for banks, credit unions, and other financial institutions. Customers who utilize electronic funds transfers can also sign up for our automatic bank reconciliation, which can shave days each month for larger organizations. One group cut the bank reconciliation process from four days per week to one half day.
By Malcolm Roach of Open Door Technology, Microsoft Dynamics NAV Partner based out of Calgary, Alberta