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How to Start with Bank Account Reconciliation in Microsoft Dynamics 365 Business Central

A company has move to Microsoft Dynamics 365 Business Central (BC) from legacy system, other than migrating the outstanding documents from Accounts Payable and Accounts Receivable to BC, you can also migrate the unreconciled bank transactions such as unpresented cheques and deposit in transit to BC.


For example, I need to perform June’s 2022 Bank Recon in BC, and will need to setup the following in BC before I can proceed with bank reconciliation in BC.

  •  Bank Statement amount for the last performed bank reconciliation from legacy system. It will be May’s 2022 Bank Statement for this case, and the amount printed in the May’22 Bank Statement is $68,000.

  •  All the unpresented cheques for the last performed bank reconciliation in legacy system. Say there is 1 cheque payment with amount of $9,800.

  • All the deposits in transit for the last performed bank reconciliation in legacy system. Say there is 1 payment from the customer with amount of $10,200.


Step 1 – Register the outstanding documents in BC.
    Page: General Journals

1. I’m using Genera Journals to capture all the outstanding documents.

2. The Account Type should be “Bank Account” because we need the documents to be posted in Bank Account Ledgers entry.      



3. The Bank Accounts balance should have increased now after the posting of Opening Balance. (Note that the balance showing in Bank Accounts page is the amount of Bank Account Ledger, not from G/L Account Code. However, one should assure that the Bank Account Ledger should always tally to G/L Control Account code.)

    




Step 2 – Setup the Balance Last Statement
            Page: Bank Account Reconciliation


1. We need to setup the last posted amount from last posted Bank Statement as opening balance for Bank Account Reconciliation. Enter the Statement Date and Statement Ending Balance. Again, this info should reflect to the last May’22 Bank Reconciliation.  



2. Next, to create the posted bank account ledger entries as Bank Statement Lines by using Suggest Lines option.




3. Make sure the Bank Statement Opening Balance that posted earlier is between the Starting Date and Ending Date. The unreconciled items should not be included in this matching.




4. The Bank Statement Opening Balance should be both matched in Bank Statement Lines and Bank Account Ledger Entries.




5. You may print out the Bank Account Reconciliation Report from Test Report.




6. Difference must be always equals to “0.00”, to ensures the records in bank statement and in BC have no differences or variances.




7. Post the following Bank Account Reconciliation to complete the process.




8. When the users are performing for Jun’22 Bank Reconciliation, the Balance Last Statement should be showing the last posted Bank Statement amount.



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