Improved Feature: Bank Reconciliation in Dynamics Business Central

Microsoft Dynamics 365 Business Central has two major updates per year. The updates are continuous, touchless updates that provide new features and functions – which means you can always expect the latest and best version available to you, and they happen outside of your typical working hours. Eliminating the need to do expensive upgrades every few years and any downtime for you and your teams.

One of the latest updates in Business Central 2022 Release Wave 1 is the improved bank reconciliation, for checks and improved reporting and cancelling or undoing bank reconciliations.

You perform bank reconciliation to make sure that your various business transactions and expenses are reflected correctly in the company books. You do this by comparing and matching entries in your internal bank accounts with bank transactions at your bank, and then posting the balances to your internal bank accounts to make totals available to finance managers. Bank reconciliation is also a practical way to discover and resolve missing payments and bookkeeping errors.

Bank reconciliation is a key task in every company, and performing the task efficiently is important to every finance department. Better matching rules improve the speed with which bank reconciliation is done.

Here’s How Bank Reconciliation in Dynamics 365 Business Central Has Been Improved

Better Dynamics 365 Business Central Bank Reconciliation For Checks and Reporting

FEATURE AVAILABLE OCTOBER 2022

In bank reconciliation, you can now match check entries from the bank based on information from the check ledger. This gives a much higher degree of match confidence than only using information from the bank ledger. The matching rules are also made more clear, and more rules are added to increase matching success rates.

The test report has been changed so the G/L Account Balance field now shows the balance on the real G/L account at the statement ending balance date. This lets you easily detect direct postings to the G/L account. Direct posting to G/L accounts often leads to errors in bank reconciliation.

The G/L Acc. Balance (LCY) field will be calculated if you’re using a bank denominated in currency. In some cases, this can lead to differences in actual bank balances due to rounding, but it still allows you to detect direct postings to the G/L account.

The Sum of Differences field is the same as the total in the Difference column for the reconciled entries. It’s convenient to also have the sum in the header.

The Bank Statement report now includes payments that were outstanding when the bank reconciliation was posted.

Note: The report compares closing dates for bank ledger entries to the statement date to determine which entries were open when the bank reconciliation was posted. If you do bank reconciliation in reverse chronological order and you omit entries from a prior period (for example, and you also manipulate statement ending balances), entries might show as outstanding in the test report but not in the statement report. This is by design. If bank reconciliations are done consistently, both reports will show the correct entries.

The new features are available on the Bank Reconciliation page, where the test report is found, and on Bank Acc. Statement reports.

Tip: When you add a G/L account to a bank posting group on the Bank Account card, you will get a warning if the G/L account allows direct posting. This lets you decide whether to leave direct posting turned on, such as if you need to manage an opening balance. For more information, see Entering an opening balance.

Cancel or Undo Bank Reconciliations in Dynamics 365 Business Central

FEATURE AVAILABLE NOW

From the Bank Acc. Reconciliation page you can cancel a bank reconciliation that was posted with mistakes, and then from the Bank Statements page you can run a new bank reconciliation. You can also change the statement number for the bank reconciliation in case you want to redo an undone bank reconciliation using the same number. The Undo functionality is available on the standard Bank Reconciliation page. The Undo feature is not available for US Bank Rec. Worksheets.

For Bank Acc. Statements, you now have a report that shows the reconciliated entries.