Business value

Consumers and companies order more and more through webshops. Often, this requires a (partial) payment which is processed by a Payment Service Provider (PSP). The preferred Microsoft PSP is Adyen, but there are many more like WorldPay, PayPal, Square, Klarna, etc. These PSPs periodically provide detailed reports to their customers on the payments they have processed. This report contains references to the orders, payment authorizations, amounts paid and fees taken. And on the bank statement of their customer, there is usually only a single line for the PSP, referring to the details provided in the file.

When the (web)order is processed in Microsoft Dynamics 365 for Finance and Operations it is considered paid (from an end customer perspective), but the money will only come in when our customer receives the money from their PSP, minus their fee.

Our Microsoft Dynamics 365 for Finance and Operations customers want to reconcile these reports against the orders that have been received and are processing, to make sure they get paid for everything.

To keep track of what the PSP still owes them, customers can import the detailed transactions report and use that to reconcile against transactions that were brought in from the webshop. If they use Microsoft Commerce, customer invoices and settled payments are brought into Microsoft Dynamics 365 for Finance and Operations. If they have a custom interface they may also bring in both the invoice and payment data or they may bring in only invoices. In Banking we have a solution for both.

These imported transactions can be journalized. When both the (web)order and the PSP transaction have been journalized, they can be picked up by a reconciliation process that settles the transactions, using the Merchant Identifier (which is usually the (web)order-id), by looking at the description / text field of the journalized transaction.

Periodically, the customer can check which transactions did not yet clear and take action towards the PSP (or reconcile the transactions manually, if applicable).

Through a new set of tables and new GER-file, customers will be able to bring their detailed PSP files into Microsoft Dynamics 365 for Finance and Operations. From there, they will be journalized resulting in financial transactions. These transactions can either be settled against ledger transactions ('Ledger Settlements scenario') or against open invoices ('Customer Invoice Settlements scenario'). In the case of a Customer Invoice Settlements scenario, we're assuming that all web orders & invoices are created against the same (dummy) customer. Please note that this process therefore does not support consolidated customer invoices.

The overall solution looks like this:

Process

In Cash and Bank Management / Payment Service Providers, open the menu 'Payment Service Provider Batches'. To import a new file, click 'Import batch file'. It will create a new batch header and lines.

Batch Header

Batch Lines 

Journalize

After importing, the batch can be journalized by clicking the Journalize button. It will create a new Journal using the Journal Name specified on the PSP. And each line from the batch that has a type which is to be journalized, will create a line in the journal. The status of the PSP batch will change to 'Journalized'.

If the user sets 'Post Journal' to 'Yes', the journal will immediately be posted. If set to 'No', the journal can be reviewed and manually edited before posting.

In the case of the Ledger settlements scenario, only ledger accounts will be used. The offset ledger account will always come from the Journal Name as specified on the PSP. The Net credit amounts will be posted to the 'Account' specified in the PSP line mapping. And the sum of all the fees will be posted to the 'Cost Account' as specified in the PSP line mapping.

In the case of the Customer invoice settlements scenario, the customer specified on the PSP will be used for the credit and the debit transactions are created from the Net credit amount and the sum of the fees.

The created journal can be viewed by clicking the 'Ledger Journal' button at the top. If the Ledger Journal has not been posted yet, it can be deleted. Such deletion will change the status of the PSP batch back to 'Imported'.

Journalize (Paralell)

For high-volume batches containing large numbers of transaction lines, the standard Journalize process may take significant time as it runs as a single sequential task. The Journalize (Parallel) feature addresses this by splitting the journalizing work across multiple parallel batch tasks, dramatically reducing overall processing time.

How it works

When Journalize (Parallel) is triggered, the system:

1. Counts the total number of transaction lines in the batch
2. Calculates the optimal number of parallel tasks and lines per task based on the configured parameters (see Journalize performance parameters)
3. Spawns N worker tasks, each processing an assigned range of lines and creating a temporary blocked journal — these journals are hidden from the General journal form until consolidation completes
4. Once all worker tasks finish, a single consolidation task merges all temporary journals into one master journal, resolves any voucher conflicts, reassigns line numbers sequentially, recalculates journal totals, and marks the batch as Journalized
5. Optionally, if Post Journal is set to Yes, a post task runs after consolidation to post the master journal

An information message is displayed immediately after job submission showing the batch number, total lines, task count and lines per task.

Task and split size calculation

The number of tasks and lines per task are calculated automatically — no manual split size input is required:

Example - with MaxTasks = 8, MinLinesPerTask = 1000 (default parameter settings)

Batch task dependencies

The parallel tasks are wired with the following dependency chain:

mermaid

flowchart LR
W1["Worker Task 1"]
W2["Worker Task 2"]
WN["Worker Task N"]
C["Consolidate Task"]
P["Post Task (optional)"]
W1 --> C
W2 --> C
WN --> C
C --> P

• Each worker task runs independently in parallel
• The consolidation task only starts after all worker tasks have finished successfully
• The post task (if enabled) only starts after the consolidation task has finished successfully

Periodic

Posted transactions can be settled automatically, using a common identifier. For ledger transactions this identifier is looked for in the description field, and for customer payments the identifier is the invoice number.

Ledger Settlements scenario

Go to Cash and Bank Management / Payment Service Providers / Automatic Settlement. In the dialog, select a Data Interval that the settlement process should consider. Use e.g. Current Year - to date or Current and Previous period.

Banking will consider the ledger accounts defined in General Ledger Parameters / Ledger Settlements and group them by their ledger description. For such a group, all debits and credits are summarized and if the total sum is 0.00 all transactions in the group are settled.

Customer Invoice Settlements scenario

Go to Accounts Receivable > Period tasks > Settlement > Automatic Customer Settlement. In the dialog, select the appropriate way to define the date:

Setup

The Payment Service provider functionality is licensed via a separate license key.

Electronic Reporting (GER)

With Adyen being the preferred PSP of Microsoft, our product is based on Adyen and there is an out-of-the-box Adyen GER file available.

A new generic Payment Service Provider model and a specific implementation of Adyen have been added to the HSO Banking product. To validate whether they have already been imported, go to the workspace Electronic Reporting and select the tile Reporting configurations. It will open a tree control showing the available configurations. Find DYS Payment Service Provider model. It has a PSP destination mapping and a Adyen CSV Format associated with it.

Importing HSO GER files

Import can be done in two ways.

1. Import the Banking Solution in the solution tab of Lifecycle Services (LCS). This will put the GER files into the GER Configuration tab. Download them and import them manually.

2. Import via the HSO Electronic reporting repository:

Manual Import of the downloaded GER Files

• Navigate to Electronic Reporting workspace
• Click on Report configurations tile
• Click on Exchange > Load from XML and select the GER file to import. Be aware that you have to import them in the right sequence (Model > Format > Destination mapping) .

Import via the HSO Electronic reporting repository.

Navigate to Electronic Reporting workspace

• If Configuration provider HSONN does not exist, create a new configuration provider, with the name
  • Name: HSONN
  • Internet address: http://hso.com/innovation
• Click on the repositories link of the HSONN configuration provider tile
• Add new Operations resources repository and verify whether the parameters file is filled with Module: 'DYS;Name prefix 'DYS'
• Click Open and select the Layout (e.g. DYS Camt.053 Format)
  • Select in the version tab the version to be imported and click on the Import button.
  • Confirm with Yes
  • The infolog gives information on what has been imported
  • Check the field Exists and when enabled,

The imported version is now available in the Reporting Configurations. To check this, navigate to the Electronic reporting Workspace and click on Reporting Configurations Tile and check whether the Report Layout that you have imported is shown.

Payment service provider formats

PSP formats link the GER format to a format that can be selected on a PSP.

In Cash and bank management > Setup > Payment service providers > Payment service provider formats, link an ER-configuration to a format.

Payment service providers

Customers can have multiple Payment Service Providers and they may be set up differently. The Payment Service Provider setup consists of 2 parts: a header definition and a line definition. On the header the importing format, Journal Name and (optionally) the default customer are defined. On the lines, the ledger accounts for the various transactions are defined.

In Cash and bank management > Setup > Payment service providers > Payment service providers, define the PSPs the customer is working with.

Journal name

Create a Journal name of type 'General Ledger' and give it a fixed offset account of type 'Ledger'

General ledger parameters

General ledger > Ledger setup > General ledger parameters > Ledger settlements

On the Ledger settlements tab, activate the checkbox 'Enable ledger settlements' and add the ledger accounts that need to be auto-settled. This will typically be the ledger account specified as the offset account on the PSP Journal Name.

Journalize performance parameters

The parallel journalizing feature is controlled by three parameters found in Cash and bank management > Setup > Payment service providers > Payment service provider parameters, on the Journalize settings tab.

Recommended settings

FAQ