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How to Perform Bank Account Reconciliation in Microsoft Dynamics 365 Business Central

To make sure the bank statement’s listed transactions are same with records that registered in Microsoft Dynamics 365 Business Central (BC), you can perform Bank Account Reconciliation to ensure the accuracy.


Page: Bank Account Reconciliation

1.       Enter the Bank Account Statement Date and the Bank Account Statement Balance for the bank account that you need to reconcile. (Take note that the Balance Last Statement will auto reflect the last posted bank reconciliation, do not apply anything into this field.)



2.       To get the system to replicate the posted bank ledger entries in BC into Bank Statement Lines, you can select Suggest Lines options to do so.



3.       In this Suggest Bank Acc. Recon. Lines option, you can filter the bank ledgers entries from the Starting Date and Ending Date options. To make sure all open entries are included, you can leave the Starting Date field blank, while setting the Ending Date as the cut-off date.

4.       Select the Include Checks options to make sure all posted “Manual Cheques” and “Computer Cheques” in BC will be listed in Bank Statement Lines as well.

5.       Select OK to proceed.



6.       Now all the Bank Account Ledger entries in BC will be replicated in Bank Statement Lines action field. You will find all the lines in Bank Statement Lines action are all matched to Bank Account Ledger Entries action. Another way to describe this event is, BC now is assuming the current Bank Statement listing that you printed from the bank is same as per entries posted in BC’s Bank Account Ledger Entries. Your job now is to verify the matched item in Bank Statement Lines is same as per the physical bank account statement that you get from the bank.

7.       If you find some of the transactions are not registered in physical bank statement listing which due to time differences, you will need to unmatched the entries from Bank Statement Lines. These entries are normally classified as

                                                                           i.      Deposits in Transit – the payment your business has received but not recorded in your bank.

                                                                         ii.      Unpresented Cheques – the payment made by your business but not recorded in your bank.

                                                                       iii.      Bank Charges/Interest – any charges or interest from the bank that are not registered in BC’s Bank Account Ledger Entries.

8.       To remove the entries that are not match to the bank account statement, select the lines that need to be removed, then select Delete Line from the line option.



9.       Now entries that are removed in Bank Statement Lines are now become “Not Applied” in Bank Account Ledger Entries action.



10.       If you find any bank charges or bank interest that printed in bank accounts statement are not registered in BC Bank Account Ledger Entries, you can register the entries in this Bank Acc. Reconciliation page directly.

11.       Enter the transaction detail in the new lines of Bank Statement Lines, then select the Transfer to General Journal process.




12.       Select the Gen. Journal Template and Gen. Journal Batch that you need the missing transaction detail to be created in journal. Select OK to transfer to journal page.



13.       The entry is now populated in journals screen, based on the Genera Journal Template option that you select in Step 12. Complete the entries and post the entry to update the Bank Account Ledger entry in BC.




14.       Select the Back button to return to Bank Acc. Reconciliation page.




15.       Now the missing entry is matched and Applied in both Bank Statement Lines and Bank Account Ledger Entries.



16.       The Statement Ending Balance should be tallied with Bank Statement Lines Total Balance if both the bank account statement and BC bank account ledger entries are matched. If both of the amount is not match, it means that the BC bank account ledger entries are still missing entries that are not recorded.



17.       You can print out the Bank Statement report or Bank Account Reconciliation report from Test Report.



18.       Select the Print Outstanding Transactions to allow report to include unpresented cheques and deposits in transit.



19.       The Difference should equal to “0.00” if BC’s bank ledger entries is matched and tallied to bank account statement listing. 



20.       To complete the Bank Account Reconciliation for the following bank statement, you will need to perform posting.



21.       You can review the status of the bank transactions in Bank Account Ledger Entries page. Any entries that are not reconciled, it will be in Open status.



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