---
title: "D365 bank statement error for Administrators - Payhawk Help Center"
slug: "failed-to-create-bank-statement-for-expense-payment-in-microsoft-dynamics-365-finance"
description: "Fix the Failed to create bank statement error in Microsoft Dynamics 365 Finance: turn on Advanced bank reconciliation for the bank account and retry the export."
updated: 2026-03-16T14:01:29Z
published: 2026-03-16T14:01:29Z
canonical: "payhawk.com/failed-to-create-bank-statement-for-expense-payment-in-microsoft-dynamics-365-finance"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://payhawk.com/help/llms.txt
> Use this file to discover all available pages before exploring further.

# Failed to create bank statement for expense payment in Microsoft Dynamics 365 Finance

## Error message

```plaintext
Failed to create bank statement for expense payment. Selected bank account in the configuration is missing Advanced bank reconciliation. Please enable it and retry export.
```

## Affected ERP integrations

- Microsoft Dynamics 365 Finance & Operations

## Cause

This error occurs when the **Advanced Bank Reconciliation** feature is not enabled for the bank account specified in the Payhawk integration configuration within Microsoft Dynamics 365 Finance & Operations.

## Solution

To resolve this issue:

1. Log in to your Microsoft Dynamics 365 Finance & Operations account.
2. Navigate to **Cash and bank management** > **Bank accounts**.
3. Select the bank account that is configured in your Payhawk integration, for example, the account used for expense payments.
4. Go to the **Reconciliation** section or settings for that bank account.
5. Enable the **Advanced bank reconciliation** toggle button.
6. Save the changes.

![Settings for advanced bank reconciliation and payment management options displayed on a screen.](https://storage.googleapis.com/payhawk-cdn/Adm%3AIntegrations%3AError%20messages/msfo_failed%20to%20create%20bank%20statement.png)
7. Return to the Payhawk Web Portal and try to export the expense again.