Introduction
“Bank reconciliation is the process of comparing your company’s bank statements to your own records, ensuring all transactions are accounted for”. An effective bank reconciliation process can identify any discrepancies in your company’s records, and help prevent fraud and theft from your bank account.
General Section
The terms are as follows.
Bank Account No: Specifies the number of the bank account that you want to reconcile with the bank’s statement.
Statement No: Specifies the number of the bank account statement.
Statement Date: Specifies the date on the bank account statement.
Balance Last Statement: The previous balance of the Bank reconciliation normally previous period. Specifies the ending balance shown on the last bank statement, which was used in the last posted bank reconciliation for this bank account.
Statement Ending Balance: Specifies the ending balance shown on the bank’s statement that you want to reconcile with the bank account.
Bank Account Ledger Entries
In Microsoft Dynamics 365 Business Central, bank account ledger entries are managed through the “Bank Account Ledger Entries” page. Here’s a concise overview linked with bank reconciliation:
- Accessing Entries: Use the “Bank Account Ledger Entries” page to view all bank transactions.
- Bank Reconciliation: Match ledger entries with bank statements to ensure accuracy. This involves comparing transactions in Business Central with those on the bank statement.
Total of Outstanding Cheque: Specifies the part of the bank account balance that consists of posted check ledger entries. The amount in this field is a subset of the amount in the Balance field under the right pane in the Bank Acc. Reconciliation window.
The sum of all the transactions who Check Ledger Entries are available.
- What is a Check Ledger Entries? One thing is that we can create checks for the Transaction. Business central have a different sub-ledger for the checks.
- Why the check shows the outstanding Balance? The reason is we have posted the checks and send it to concern person, but bank did not adjust that. The only way to adjust that is to manually reconcile by yourself.
Balance to Reconcile: Specifies the balance of the bank account since the last posting, excluding any amount in the Total on Outstanding Checks field.
Also known as Bank Account Amount. This is the total of all the transactions that are coming in the Bank Account Ledger Entries. [If you want to check the bank account ledger entries then go to the bank account ledger entries module or go to bank account and go to the ledger entries from the fast tab.]
Balance: Specifies the balance of the bank account since the last posting, including any amount in the Total on Outstanding Checks field.
This shows the current balance of the Bank Account. You can check that by going to the bank account and then there is an option of balance in the column of the list. That balance will be equal to this balance.
Bank Statement Lines
The Fields of Bank Statement Lines is explained under:
Balance: Specifies a balance, consisting of the Balance Last Statement field, plus the balance that has accumulated in the Statement Amount field.
This is very similar to the Total balance (Balance Last Statement + All Bank Statement Lines) but the major difference between balance and total balance is: For example, there are 5 transactions and if we click on the 3rd transaction. Then the above value used in all the bank statement lines are only going to be 3.
Total Balance: Specifies the accumulated balance of the bank reconciliation, which consists of the Balance Last Statement field, plus the balance in the Statement Amount field.
(Balance Last Statement + All Bank Statement Lines)
Total Difference: Specifies the total amount of the Difference field for all the lines on the bank reconciliation.
The difference in the Total value of Bank Statement Line and Bank Ledger Entries.
Types in Statement Lines
The Type option in the of Bank Statement Lines are off 3 Types.
- Bank Account Ledger Entry: There are lines are already available in a system. If we are reconciling with the available entries present in the system, then we will use the Bank Account ledger Entries option.
- Check Ledger Entries: The entries that are related to Checks (Bank Checks)
- Difference: Sometimes there are transaction are showing in the Bank’s book but after struggling to find that in the Company’s Book but still couldn’t find that transaction and when we post the bank reconciliation then it is not allowing because these are not reconciled. So, we can change the type to Difference and then if we post it then the system will reconcile it and bank reconciliation will be posted. ⚠️{But it is Highly Not Recommended Method to use}.⚠️
Action Bar
In this Article we will discuss the 2 Major Section [Home & Matching] in Action Bar of Bank Accounts Reconciliation.
- Suggest Line: Create bank account ledger entries suggestion and enter them automatically. When bank statement lines are not available, and you can use this to automatically match every point.
- Transfer to General Journal: Transfer the lines from the current window to the general journal. Normally when there are no bank ledger entries are present but the bank statement lines are created.
- Match Manually: You can manually reconcile bank account ledger entries and bank statement lines.
- Match Automatically: You can automatically reconcile bank account ledger entries and bank statement lines.
- Remove Match: Click on this to remove the match of reconciliation.
Hope so you like the article and get to know about few fields that normally scares a Consultant or an Accountant.
Thanks for Reading
Ahmad Subhani
D365 Business Central – Functional Consultant
MB-800 Microsoft Certified