Cognic Systems

CASE STUDY

AI-Powered Bank Reconciliation Automation

An automated reconciliation platform combining Azure AI Document Intelligence, Make.com orchestration, and Microsoft Dynamics 365 Business Central for daily settlement matching across 22 bank accounts.

CLIENT
Enterprise Client

INDUSTRY
Financial Services

CAPABILITY
Document AI + System Integration

USE CASE
Bank & Credit Card Reconciliation

Cognic BankRec
Overview
Statements
Reconciliation
Exceptions
📄 Audit Trail
Reports
Daily Bank Settlement & GL Reconciliation
22
Active Bank Accounts
1,420
Daily Statement Lines
98.4%
Auto-Match Rate
12
Flagged Exceptions
Date Bank / Account Description Amount Status Confidence
10/24/2023 Chase Primary #4091 Stripe Settlement Batch $148,250.00 Matched to GL 99%
10/24/2023 BofA Operating #8812 Vendor Wire – Apex Media $34,120.00 Matched to PO 96%
10/24/2023 Amex Corporate #1004 AWS Cloud Services $12,450.80 Auto-Categorized 98%
10/23/2023 Wells Fargo #6219 Unidentified Merchant Deposit $8,940.00 Duplicate Warning 84%
10/23/2023 Chase Payroll #4099 ADP Payroll Direct Debit $92,400.00 Matched to GL 100%
Settlement Match Breakdown

Monthly Statement Processing
150Pages

● Chase (45%)
● BofA (35%)
● Other (20%)

22 Bank & Card Accounts
Automated daily ingestion across 7 banking institutions
85% Faster Month-End Close
Reduced close cycle from 5 business days to under 4 hours
100–150 Statement Pages Monthly
PDF and Excel tables extracted with OCR & Document AI
Zero Errors Duplicate Prevention
Proactive detection of double deposits and unmatched fees

What is automated bank reconciliation?

Automated bank reconciliation uses OCR, AI-driven transaction matching, and ERP integrations to extract bank and credit card statement lines, match them against General Ledger records in Microsoft Dynamics 365 Business Central, and flag discrepancies for human-in-the-loop review.

A Smarter Way to Reconcile Financial Accounts
The Challenge
Manual daily comparison of 100–150 pages of statements across 22 accounts with high risk of missed discrepancies.
The Solution
End-to-end automated workflow extracting statement tables, auto-matching ERP transactions, and routing exceptions.
The Outcome
98.4% straight-through auto-match rate, seamless audit trail, and dramatically accelerated accounting closes.

The Challenge

Finance teams managing multi-entity accounts face severe operational friction reconciling disparate bank feeds, corporate credit cards, and ERP ledgers.

22 bank accounts across 7 financial institutions
100–150 pages of monthly PDF and Excel statements
Discrepancies in merchant batch deposits vs. gross sales
Duplicate deposit and payment detection challenges
Manual report preparation in spreadsheets
High risk of unrecorded bank fees and interest charges
Time-consuming exception follow-up across internal departments
Audit log fragmentation across email and shared drives

Traditional Manual Reconciliation vs. Cognic AI Workflow

Workflow Stage Traditional Manual Workflow Cognic AI-Powered Engine
Statement Ingestion Manual download and transcription of 150+ pages of PDFs & CSVs Automated webhook and email intake with Azure AI Document Intelligence table extraction
Transaction Matching Line-by-line Excel lookups and manual VLOOKUP matching Multi-variable rule & fuzzy matching engine pairing 98%+ of records instantly
Duplicate Detection Easily overlooked when deposits arrive under different reference IDs Semantic and amount/date window anomaly detection flagging duplicate deposits
Exception Routing Spreadsheets emailed back and forth between accounting staff Interactive Analyst Workbench with 1-click approvals and comment logs
ERP Posting Manual journal entries keyed into Business Central Direct API posting of reconciled batches and adjustments to Dynamics 365
Audit Compliance Scattered paper files and disconnected Excel versions Immutable audit logs linking original statement PDFs to ledger journals

The Cognic Bank Reconciliation Engine

Three integrated modules transforming raw statements into reconciled ERP entries.

01
Document AI & Statement Ingestion
Ingests multi-bank statements, parsing complex tabular layouts and currency formats.
• Azure Document Intelligence OCR
• Multi-bank format normalization
• Credit card transaction parsing

02
Intelligent Matching & Anomaly Detection
Matches statement lines to Business Central ledger entries and detects exceptions.
• 1-to-many & many-to-1 matching
• Fee & interest auto-classification
• Duplicate deposit screening

03
ERP Integration & Exception Workbench
Enables reviewer validation and writes verified settlement journals directly to ERP.
• Dynamics 365 Business Central API
• Human-in-the-loop exception UI
• Automated reconciliation reports

Analyst Review
Confidence-based exception resolution

ERP Posting
Auto-creates reconciled general journals

Audit Trail
Exportable compliance working papers

Platform Architecture & Processing Pipeline

An enterprise-grade, resilient financial data pipeline built for high volume.
1 Statement Intake
› PDF Statements
› Bank CSV Feeds
› Credit Card Feeds
› Email Webhooks
› Secure Storage
2 AI Extraction
› Azure Document AI
› Table Extraction
› Field Normalization
› Currency Conversion
› Confidence Scoring
3 Matching & Rules
› Exact Match Rules
› Fuzzy Description Engine
› Tolerance Thresholds
› Duplicate Flagging
› Exception Routing
4 ERP Sync
› Business Central API
› Journal Generation
› Bank Account Ledger
› Reconciliation Reports
› Audit Trail Export

From Bank Statement Line to Reconciled Ledger Entry

A complete traceable audit trail connecting raw statement items to verified accounting entries.
Bank Statement
AI Extraction
ERP Ledger Data
Rule Matching
Analyst Check
Reconciled GL

AI & Automation Layer

Advanced capabilities powering the reconciliation engine.
Document AI Table Extraction
Precision OCR on multi-column PDF bank statements
Fuzzy Merchant Normalization
Matches abbreviated statement descriptions to ERP vendor names
Duplicate Transaction Detection
Anomaly scoring across sliding temporal windows
Confidence Scoring Engine
Routes high-confidence matches straight to GL posting
Automated Exception Routing
Notifies responsible managers of unmapped transactions

Analyst Exception Workbench

Review interface for financial controllers and accountants.
Date Account Description Amount Flag Confidence Action
10/24/2023 Chase #4091 Stripe Settlement #9021 $148,250.00 Matched to GL 99%
10/24/2023 BofA #8812 Vendor Wire Apex $34,120.00 Matched to PO 96%
10/24/2023 Amex #1004 AWS Hosting Debit $12,450.80 Auto-Classified 98%
10/23/2023 Wells Fargo #6219 Unmapped Branch Deposit $8,940.00 Manual Review 84%

Enterprise Financial Security
Compliant data architecture safeguarding sensitive banking records.
Private VPC
Role-Based Access
AES-256 Encryption
Immutable Logs
SOC 2 Ready
Zero Retention

Technology Stack
Key technologies powering the production deployment.
Azure Document AI
Dynamics 365 BC
Make.com
PostgreSQL
Power BI
Python Engine
REST Webhooks
Docker
Azure Key Vault
React Workbench

What Changed
Key operational and efficiency improvements.
Automated daily reconciliation across 22 bank accounts
Straight-through auto-matching rate improved to 98.4%
Eliminated manual Excel lookups and transcription errors
Month-end close time reduced from 5 days to 4 hours
Complete audit-ready documentation and reconciliation reports

Built for Finance Leaders
Engineered for corporate accounting and finance departments.
Chief Financial Officers
Real-time visibility into cash positions and daily reconciliation.
Controllers & Accounting Directors
Accelerate monthly close cycles while ensuring GAAP/IFRS compliance.
Senior Staff Accountants
Eliminate repetitive manual matching and focus on exception resolution.

Ready to Automate Your Multi-Bank Reconciliation Workflow?

Cognic designs and deploys custom, secure AI reconciliation platforms connecting your banking feeds, credit cards, and ERP.

Discuss your bank statement formats, volume, matching rules, and ERP integration requirements with our architecture team.