Bank Reconciliation - Manual Match Challenges

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Posted on by Greg Kujawa

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So in BC 365 SaaS v23 we are trying to perform our first Bank Reconciliation in Production. Over the past year or so Microsoft has moved more toward auto-matching, Copilot assistance, etc. Which sounds good theoretically if most all bank transactions had a one-to-one relationship to our bank ledger. But for a retail company, this isn't always the case. Specifically when it comes to payment card processing, their deposited amounts, the bank's fees charged, how some deposits are split against individual payment card types, how some deposits are even split over multiple days, etc. It's a challenge to even manually match these.

According to Microsoft's online documentation (https://learn.microsoft.com/en-us/dynamics365/business-central/bank-how-reconcile-bank-accounts-separately#match-bank-statement-lines-with-bank-account-ledger-entries-manually) you shouldn't manually match bank transactions against the bank ledger in a many-to-many scenario, and expect the bank reconciliation to post. Instead you should post the differences and then go back into matching. Sounds a bit cumbersome.

I heard that a few years ago BC 365 employed a bank reconciliation feature that was similar to what's provided in Dynamics GP (our previous ERP solution). Where you basically just checked off the bank transactions once you verified they have been manually matched. How do the rest of you handle this many-to-many scenario in current BC 365?

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Gavin 2,339 on at

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Bank Reconciliation - Manual Match Challenges

Hi,

With regards manually matching, in Business Central you can manually match by using the "Suggest Lines" feature. This essentially lets you do a manual bank rec by pulling in all the "Bank Account Ledger Entries" into the left hand pane as well as the right hand pane and matching them off. (rather than importing your bank statement from the bank)

Its not ideal as you arent matching to the bank statement but it enables a manual reconciliation to clear the bank reconciliation.

Thanks

Gavin
Greg Kujawa 620 on at

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Bank Reconciliation - Manual Match Challenges

This is in response to my question about reconciling the bank statement? I'm not sure where vendor invoices and payments being applied come into play. I'm talking about matching up what our bank ledger shows versus what our checking account shows for bank transaction on the statement we pull from our financial institution...
KasparsSemjonovs 3,926 Super User 2024 Season 2 on at

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Bank Reconciliation - Manual Match Challenges

In case of deposits, You could just set up that the Application method on customer card = Apply to Oldest.
It will automatically apply Invoices/Payments to the oldest, therefore only the latest invoices will not be paid (if the deposits are less than total invoice amount).

Bank Reconciliation - Manual Match Challenges

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