Usage of Bridging Account in Payment methods in D365 Finance and Supply Change

 

When there is a time lag between collection of payment and actual deposit it into the bank. In this case bridging account is used at method of payment form mainly for reconciliation purposes. With the bridging account feature business can check the what are the payment has been collected which will be shown in bridging account (control account) and what are the amount that are actually deposited into bank which will be shown in actual account (will be defined in method of payment itself). 

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In case of retail business, all the retail center is considered as customer and all collected cash at center in a day is collected by CMS vehicle at day end and on next day all the collected  cash is deposited into bank. After depositing it may take sometime to reflect into actual bank and finance team take some time to check the bank statement and debit the actual bank.

 In this case when cash is collected by retail center all the collected cash will be put into some cash control account (bridging account). And when it is actually recognised by finance user that collected cash is reflected into bank through bank statement then these amount will be debited to actual bank account ledger from cash control account (bridging account). 

1. Retail Center/ Customer  collects payment from end customer in the form of cash. Once all the collected cash is collected by CMS vehicle from all center and deposited into bank next day following entry is passed into the cash control account:

 

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Navigation - Accounts receivable > payment setup > methods of payment

Create new methods of payment and defined the relevant ledger as per below screenshot

 

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Select Methods of payment for customer payment journal and post the customer payment journal

 

 

Post the voucher and check the voucher transaction

 

 

Navigation - General ledger > Journal Entries > General journal 

 

 

Go to Function > click on select bridged transaction, all the transaction that has been posted to bridged account will be visible 

 

 

Select the bridged transaction and accept to take this line to Journal voucher

 

 

Select the bridged transaction and Post

 

Click on voucher to Check the voucher transaction, balance is transferred to actual bank account from cash control account 

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Happy Learning 🙂