How to Use the Account Reconciliation Agent in D365 Finance & Operations (Setup, Features, and Best Practices)

 

 

Finance teams using Dynamics 365 Finance and Operations (D365 FO) are experiencing a significant shift in how account reconciliations are handled, thanks to the Account Reconciliation Agent.

First introduced in preview with version 10.0.44 and greatly enhanced in 10.0.46 (now production-ready preview), this AI-powered agent helps organizations move away from stressful, reactive month-end reconciliations toward a cleaner, continuous close process.

The agent continuously monitors alignment between subledgers, Accounts Payable, Accounts Receivable, Bank, and Tax and the general ledger, detects discrepancies early and intelligently suggests how to fix them. All of this happens in one place: the Account Reconciliation workspace.

In this blog post, we’ll walk through the feature logically:

• Why the agent matters
• What it does and how it works
• How to enable and configure it (Hands-on)

Why This Agent Matters: The Shift to Continuous Reconciliation

Traditionally, reconciliation in D365 FO relied on end-of-period reports. Finance teams would run reports, identify differences, and scramble to fix issues just before close.

The Account Reconciliation Agent changes this model entirely.

It continuously monitors four critical subledger areas:

• Accounts Payable
• Accounts Receivable
• Bank
• Tax

It flags discrepancies such as:

• Voucher amount differences
• Pending or untransferred subledger accounting
• Entries present in the general ledger but missing from the subledger (new in 10.0.46)
• Entries present in the subledger but missing from the general ledger (new in 10.0.46)

Instead of discovering surprises at period-end, the agent raises exceptions near real-time, evaluates them using AI powered by Copilot, and recommends precise next steps—long before close pressure sets in.

The Account Reconciliation workspace becomes the central hub where all of this activity is visible and manageable.

 

What Is the Account Reconciliation Agent?

The Account Reconciliation Agent is an intelligent feature designed to proactively maintain alignment between subledgers (AP, AR, Bank, Tax) and the general ledger.

Historically, finance teams relied on reactive tools like SSRS reports to identify issues after the fact. This agent flips the script by:

• Continuously scanning for reconciliation exceptions
• Raising issues automatically
• Suggesting corrective actions

At its core, the agent focuses on key exception types, including:

• Voucher amount mismatches between subledger and general ledger
• Pending subledger accounting not yet transferred to the general ledger

All activity takes place in the Account Reconciliation workspace, where the agent:

• Surfaces exceptions
• Evaluates them using AI
• Recommends mitigation actions

For example, the agent might suggest:

• Creating a correcting journal entry
• Reversing an incorrect voucher
• Linking untransferred transactions

This automation dramatically reduces manual reconciliation effort and allows finance professionals to focus on higher-value work.

 

Key Benefits of the Account Reconciliation Agent

Organizations using this agent gain measurable benefits:

Efficiency Gains Accounts stay reconciled with ongoing monitoring, less manual work, and a faster close.

Proactive Error Management Exceptions are spotted within 10–20 minutes, stopping issues before they escalate.

Enhanced Transparency Every action is recorded in a complete audit trail.

Improved Decision-Making Accurate financial data enables better forecasting, analysis, and reporting.

Learning Capabilities Copilot helps the agent learn from user actions and improve recommendations.

In high-volume sectors like manufacturing or automotive, the agent greatly cuts reconciliation errors and time.

 

How to Enable and Set Up the Agent

Getting started is straightforward and typically handled by system administrators. Your environment must be on D365 FO version 10.0.44 or later.

Prerequisites

• Dynamics 365 Finance licensing, including access to the Autonomous Agents add-on
• Microsoft Copilot integration enabled
• Standard AI feature requirements met

Activation Steps

1. Enable Required Features

• Go to Feature management
• Enable (Production Ready Preview) Agent management
• 
• If required, enable (Preview) Account reconciliation agent

2. Activate the Agent

• Navigate to Modules > Agents > Agent library
• Select the Account reconciliation agent template
• 
• Activate it and open the Account reconciliation configuration form:
• Enable or disable reconciliation areas (AP, AR, Bank, Tax)
• Select relevant main accounts (e.g. vendor balance accounts like 200100)

3. Background Processing

• A batch job called Automatic account reconciliation process is created
• Located under System administration > Process automations
• Runs every 6 hours by default, but the frequency can be adjusted
• 

Once activated, results start appearing immediately in the Account Reconciliation workspace under the General ledger module.

Navigating the Workspace: Your Daily Starting Point

Open the workspace via Workspaces > Account Reconciliation (or use global search).
Navigating the Account Reconciliation Workspace
The Account Reconciliation workspace is designed to give you an immediate overview of reconciliation health and guide you straight to the actions that matter.
At the top of the workspace, you can see the reconciliation status for the selected fiscal period, legal entities, and areas. From here, you can quickly determine whether everything is aligned or if attention is required.


Open Exceptions
The Open exceptions section shows reconciliation issues that still need to be resolved.

Exceptions are automatically classified, for example:

• Amount differences between subledger and general ledger
• Transactions posted in the general ledger without a corresponding subledger entry

Selecting Mitigate exceptions takes you to the detailed exception view, where you can investigate voucher-level information and choose how to resolve each issue. This is typically the main starting point for daily reconciliation activities.
 
Addressed Exceptions
The Addressed exceptions section contains issues where an action has already been taken.
These exceptions no longer require immediate attention but remain available for review and audit purposes. Using View addressed exceptions, you can inspect the resolution history, see the activity timeline, or undo a previously selected action if needed.
 
Reconciled Transactions
The Reconciled transactions section shows transactions where the subledger and general ledger are fully aligned.
This gives confidence that monitored accounts are continuously reconciled and helps reduce pressure during period-end close.
 
Account Reconciliation Agent
The Account Reconciliation Agent tile highlights the agent’s activity.
It also shows whether the agent has started offering Copilot-driven suggestions. As the agent learns from user actions over time, it will begin proposing recommended resolutions for new exceptions.
 
Area-Level Overview
In the lower part of the workspace, reconciliation status is grouped by area (such as Accounts Payable or Bank).

This allows you to:

• Quickly identify which area requires attention
• Drill down into exceptions for a specific area
• Monitor reconciliation progress across modules

Additional columns provide context such as legal entity, status, and any accounting or reporting currency differences, while the Snapshot option lets you capture a point-in-time view for audit or close documentation.
 
This layout makes the workspace a natural daily starting point: review open exceptions, mitigate what’s needed, and move on — without waiting for month-end.
 

1. Select the Fiscal Period

• The current fiscal period appears at the top
• Click to change periods
• Only one period can be selected at a time
• Selecting a new period automatically clears the previous one, keeping the view focused
•  
• 

2. Review the Status Overview

Each reconciliation area shows a clear status:

• Fully reconciled → No issues detected
• Exception count → Drill down to investigate

3. Investigate Exceptions

When a discrepancy occurs such as posting directly to a vendor control account in GLthe affected area highlights it quickly.

• Click the exception indicator for summary details (company, difference amount)
• Select Mitigate exceptions to open the detailed mitigation view

 
Resolving Exceptions: Step-by-Step Options

For each exception, the agent displays key context (voucher number, amount, main account, difference) and offers four resolution options:

1. Reverse
2. Opens the original voucher with Reverse preselected.
• Optional reason required
• The agent does not auto-post the reversal
• If you exit without posting, the exception is still marked as addressed (Undo is available in Activity)
3. Create journal entry
4. Opens the General journal form to create a correcting entry.
• Not fully auto-populated
• Provides enough context to post accurate adjustments quickly
5. Link transactions
6. Connects pending subledger transactions to general ledger entries.
• If no transactions appear, run Subledger journal entries not yet transferred first
7. Accept without change
8. Clears the exception with a mandatory explanation.
• Best used for intentional GL-only postings (e.g. provisions)
• Best practice: minimize usage and post through subledgers when possible

 
Tracking Your Actions: Addressed Exceptions & Activity

Once resolved, exceptions move to Addressed exceptions.

• Select View addressed exceptions to review history
• The Activity pane shows a complete timeline:
• Agent detection
• Suggested action
• User decision
• Final outcome

You can even Undo actions if needed (for example, restarting an abandoned reversal).
If your organization uses the immersive home page, recent agent activity and reconciliations also appear on the dashboard for quick oversight.

Hands-On Example: How I Triggered and Resolved Multiple AP Reconciliation Exceptions

To demonstrate how the Account Reconciliation Agent works in practice, I deliberately created reconciliation issues in my environment and followed how the agent detected and guided me through resolving them.
 
Creating the Exception (GL-Only Posting)
In my environment, I posted a transaction directly in the General Ledger using a main account for Accounts Payable (for example 200100).
I did not post this transaction through the Accounts Payable subledger.
Within 10 minutes, the Account Reconciliation workspace showed an exception under Accounts Payable.
📸 Screenshot: Account Reconciliation workspace showing AP exception

Reviewing the Exception in the Workspace

When opening the exception bar, I could immediately see:

• The legal entity
• The difference amount

To get more details, I selected Mitigate exceptions.
📸 Screenshot: Exception summary bar with Mitigate exceptions option

Exception Details Identified by the Agent

In the mitigation form, the agent provided detailed information about the detected exception, including:

• Voucher number
• Posting amount
• Main account
• Confirmation that the posting existed in GL but not in the AP subledger

📸 Screenshot: Exception details form showing voucher, amount, and main account

This form also displays the available options to resolve the exception:

• Reverse
• Create journal entry
• Link transactions
• Accept without change

📸 Screenshot: Mitigation options (all four actions visible)


 
Reverse
For voucherGJN-000000147, I selected Reverse.
This opened a form where I could optionally enter a reason comment (Optional)
📸 Screenshot: Reverse option with reason field

After confirming, the system opened the original ledger transactions. From there, I manually used Reverse transaction to reverse the posting.

Now it is reversed and it is also possible to undo the action if you wish.

Create Journal Entry

For voucher GJN‑000000147, I selected Create journal entry.

Again, entering a reason comment was optional.

📸 Screenshot: Create journal entry option selected

The General Journal form opened, allowing me to manually create a correcting entry.

Important to note:

The original posting details are not automatically shown
The journal is created and posted manually

 

Match Transactions

For voucher GJN‑000000147, I selected Link transactions.

This option allows you to link subledger transactions that exist but are not yet transferred to the General Ledger.

In my case, no such subledger transactions existed, so the list was empty.

📸 Screenshot: Link transactions form showing no results

Best practice:
If you encounter this situation, always run the periodic task
General ledger > Periodic tasks > Subledger journal entries not yet transferred
before assuming no transactions are available to link.

 

Accept Without Change

For voucher GJN‑000000147, I selected Accept without change.

📸 Screenshot: Accept without change option

After accepting, the posting no longer appeared as an exception. The difference was explicitly accepted for this GL-only posting.

This option can be useful for:

Intentional General Ledger corrections
Provisions or adjustments that should not flow through subledgers

That said, my advice is to avoid this option whenever possible.
If a correction belongs in the subledger, it should be resolved in the subledger, not accepted in GL.

 

Addressed Exceptions and Undoing Actions

All actions taken through the workspace are tracked under Addressed exceptions.

By clicking View addressed exceptions, I could see the details of every resolved item.

    Agent Visibility on the Immersive Home Page

When using the Immersive Home Page in D365FO, agent activity is clearly visible.
The Account Reconciliation Agent appears with recent activity and status updates.

Giving agents this prominent place on the home page highlights their importance and reinforces that agents will play an increasingly central role in Finance & Operations going forward.