The settle customer invoice rule as currently designed create inconsistencies .

illustration .

A settle customer invoice rule is configured ( which require default method of payment X and a default Bank transaction type 99

when executing that rule , system create the payment journal using the invoice to settle method of payment ( say Y ,which is tied to bank transaction type 09 ) However the Bank transaction generated carry the rule default bank transaction type ( 99 )

If now one need to cancel that payment ( from the reconciliation worksheet ) . A cancel payment journal get posted with the Y method of payment and the bank transaction inheriting the bank transaction type associated 09 .

RESULT : the payment generate holds bank transaction type 99, the cancel payment holds bank transaction 09 . the 2 transactions produced from the advanced bank reconciliation feature did not got reconciled at time of posting the cancel payment and can never be reconciled later , even manually .

the SUGGESTION . Considering that a settle customer invoice rule is intended for incoming payment made by customer and not recorded in D365. The customer may chose to settle invoices and pay using a method of payment that is not necessarily the one that was set on the invoice recorded in D365 ( do not think the method of payment even show on classic invoice ) .

So the logic would be to rather force the method of payment and associated bank transaction type as defined on the rule when producing the customer payment journal .

Note this was initially reported to MS SUPPORT , but not escalated nor resolved as being by design when obviously this create unrecoverable situation ( inability to reconcile the payment and its cancellation , both produced by Advanced bank reconciliation !