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Bank Reconciliation in Microsoft Dynamics 365 Business Central

Bank reconciliation is the process of matching your bank account transactions in Business Central with the actual transactions on your bank statement to ensure accuracy and identify any discrepancies.

Overview

The bank reconciliation process in Business Central helps you:

• Verify that your bank account balance matches your bank statement
• Identify outstanding checks and deposits
• Detect bank errors or unauthorized transactions
• Maintain accurate financial records

Prerequisites

Before starting bank reconciliation, ensure that:

• Your bank account is properly set up in Business Central
• Bank account posting groups are configured
• You have imported or manually entered bank transactions
• All relevant payments and receipts have been posted

Step-by-Step Bank Reconciliation Process

1. Access Bank Account Reconciliation

1. Choose the icon
2. Enter Bank Account Reconciliations and choose the related link
3. Select New to create a new reconciliation

2. Import Bank Statement

1. On the Bank Acc. Reconciliation page, choose Import Bank Statement
2. Select your bank statement file (if using electronic import)
3. Alternatively, manually enter bank statement lines

3. Match Transactions

Business Central provides several matching options:

Automatic Matching

1. Choose Match Automatically to let the system find matches
2. The system will match based on:
   • Transaction amounts
   • Transaction dates (within tolerance)
   • Document numbers
   • External document numbers

Manual Matching

1. Select unmatched bank statement lines
2. Choose Match Manually
3. Select the corresponding bank account ledger entries
4. Choose OK to confirm the match

Text-to-Account Mapping

1. Set up automatic posting for recurring transactions
2. Choose Text-to-Account Mapping
3. Define rules for automatic posting of bank fees, interest, etc.

4. Handle Unmatched Transactions

For unmatched bank statement lines, you can:

• Create new entries: For transactions not yet recorded in Business Central
• Transfer to General Journal: For complex transactions requiring manual posting
• Write off differences: For small rounding differences

5. Post the Reconciliation

1. Ensure all lines are matched or accounted for
2. Verify the Statement Ending Balance matches your bank statement
3. Choose Post to finalize the reconciliation

Payment Reconciliation Journal

For processing customer and vendor payments, use the Payment Reconciliation Journal:

1. Choose Payment Reconciliation Journals
2. Import bank statement or payment files
3. Use automatic matching rules
4. Apply payments to open customer/vendor ledger entries
5. Post the journal

Best Practices

Regular Reconciliation

• Perform bank reconciliation monthly at minimum
• Reconcile more frequently for high-volume accounts
• Don’t let unreconciled items accumulate

Bank Statement Import

• Set up electronic bank feeds when possible
• Use standard bank file formats (ISO 20022, BAI, etc.)
• Maintain consistent import procedures

Matching Rules

• Configure automatic matching rules for recurring transactions
• Set appropriate date and amount tolerances
• Review and update matching rules regularly

Outstanding Items

• Investigate old outstanding checks and deposits
• Follow up on unreconciled items promptly
• Maintain documentation for adjustments

Troubleshooting Common Issues

Duplicate Transactions

• Check for duplicate imports
• Verify posting dates and amounts
• Use filters to identify duplicates

Missing Transactions

• Ensure all payments and receipts are posted
• Check for transactions in other periods
• Verify bank account selection

Balance Differences

• Verify statement ending balance entry
• Check for unposted transactions
• Review bank charges and interest

Integration with Aritma Pay

When using Aritma Pay with Business Central:

• Bank transactions are automatically imported
• Payment status updates are synchronized
• Reconciliation is streamlined through automation
• Matching rules can be customized for your banking setup

Additional Resources

For more detailed information on bank reconciliation in Business Central, see the following Microsoft Learn documentation:

• Reconcile bank accounts
• Set up bank account reconciliation
• Apply payments automatically and reconcile bank accounts
• Set up rules for automatic application of payments
• Reconcile payments using automatic application

Support

If you encounter issues with bank reconciliation while using Aritma Pay, contact support@aritma.com for assistance.