Bank Reconciliation Issue with Missing Dates (Weekends) in MT940 Files

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Posted on by Med-1912

Hello D365 Community,

I’m facing an issue when importing MT940 bank statements into D365 Finance & Operations.

My bank’s MT940 files do not include entries for non-working days (weekends and holidays). However, D365 enforces a strict date sequence and rejects any gaps in the timeline.

Example:
My MT940 file contains:

Friday, April 5, 2024: Balance = €10,000

Monday, April 8, 2024: Balance = €10,250

D365 rejects this file because the following dates are missing:

Saturday, April 6, 2024

Sunday, April 7, 2024

What is the best approach to resolve this without manually editing each file?

Thank you
Mohammed

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Saif Ali Sabri

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You’re dealing with a standard issue when importing MT940 files into Dynamics 365 Finance and Operations (D365 F&O):
The system expects continuous balance reporting, but MT940 files often skip non-working days (weekends/holidays), causing D365 to throw validation errors about missing dates.
Here’s a complete solution approach for you:

🎯 Root Cause
In D365 F&O, the Advanced bank reconciliation functionality requires daily balances without gaps to ensure that the calculated balance matches imported transactions and statements for each calendar day.
When a bank doesn't send weekend or holiday statements, D365's default logic misinterprets it as a missing file or a system error.

✅ Solution Options
You have two primary options to fix this without manually editing each MT940 file:

Option 1: Enable the "Allow gaps in statements" Parameter (Recommended)
Steps:

Go to Cash and Bank Management > Bank accounts.
Open the specific Bank account used for MT940 import.
Navigate to the Reconciliation FastTab.
Find and enable the checkbox:
🔲 Allow gaps in statements
(It might also be phrased as Allow missing dates in some D365 versions.)
Save changes.

Effect:
This setting tells D365 to accept imported statements even if there are date gaps (weekends/holidays) without throwing errors.
Important:
This setting assumes that you trust your bank’s balances and that gaps are expected due to non-working days. It’s safe for standard banking practices.

Option 2: Use a Pre-Processing (Transformation) Script on MT940 Files (Alternative)
If for some reason "Allow gaps in statements" isn't acceptable (e.g., strict internal controls), you can automate file adjustment:

Create a small Data Transformation Script (in Power Automate, SSIS, C# app, or Logic App) that:
- Scans the MT940 file.
- Detects missing dates (weekends/holidays).
- Inserts dummy balance entries for those missing dates using the last known balance.

Example Logic:

April 5 balance = €10,000
April 6 = €10,000 (no movement)
April 7 = €10,000 (no movement)
April 8 = €10,250 (movement occurs)

✅ Now D365 will accept it.
Note:
You must be careful not to mistakenly introduce wrong balances. Only "copy forward" balances if no transactions occurred.

⚡ Recommended Action Plan
Since your issue is only about weekends/holidays (which is standard banking behavior), I strongly recommend you first try Option 1 — enabling Allow gaps in statements.
Only build a pre-processor if your organization insists on daily balance reporting for audit.

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