How to manually process a Bank Reconciliation in Dynamics 365 Business Central?

The following guide will walk you through on how to manually process a bank reconciliation in Business Central.

Microsoft Dynamics 365 Business Central | Bank Reconciliation

By: Lupe Haro – Microsoft Dynamics ERP Consultant

The following guide will walk you through on how to manually process a bank reconciliation in Business Central using the Bank Account Reconciliation window.

Bank reconciliation is a critical financial process in Business Central that ensures your recorded transactions match your bank statements. If you’re new to Business Central or planning to implement it, our comprehensive guide for Dynamics 365 Business Central implementation covers everything from initial setup to go-live, including essential financial management configurations.

1. In the Global Search , enter “Bank Account Reconciliation” and select the option in red.
2. In the Bank Account Reconciliations window, select New > New.
3. Select the bank account you want to reconcile and click OK.
4. Enter the Statement Date you are reconciling and the Balance on the Statement in the corresponding fields. Accurate bank reconciliation is essential for maintaining financial integrity across all industries. For example, a US cannabis company enhanced their financial accuracy with Dynamics 365 Business Central, streamlining their reconciliation processes and improving compliance in a highly regulated environment.
5. Under Process > Select “Suggest Lines” to populate the bank reconciliation with all posted bank transactions.
6. Under Record type to process, select “Both” and you can also add a posting date filter, so the system only pulls transactios for the given period. Click “Ok” to pull the transactions.
7. The system will pull the transactions and add them to the corresponding sections. At this point, you will need to mark all the transactions that cleared in the given period.
8. Once you have completed the marking of cleared transactions, the “Difference” should be zero. If there is a difference or a transaction is missing it can be added within the Adjustments section of the reconciliation window. (NOTE: The reconciliation cannot be posted until the difference is zero)

NOTE: If the balance is not zero, here are a couple things to watch out for:

1. Transactions posted directly to the general leder cash account and not to the bank ledger.
2. Missing transactions in the bank reconciliation (These can be recorded in the Adjustments section.
3. Transactions mistakenly marked as cleared or not cleared in the grid.

If you continue experiencing reconciliation discrepancies or need assistance troubleshooting complex issues, our Business Central support services provide expert help with financial processes, system configurations, and day-to-day technical challenges.

9. Once all transactions are marked and the reconciliation difference is zero, you can post the reconciliation under Posting > Post.

Once posted you can reference posted reconciliations within the bank account card under Navigate > Bank Acc. > Posted Reconciliations.

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