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Bank Reconciliation Opening Balance

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Posted on by Dv Acuma

Hi All,

So I'm currently doing our bank reconciliation for the first time, and I noticed that our bank opening balance is showing as an entry in the bank reconciliation side (right side). Is the system supposed to do this or we did something wrong in the setting up phase of the system?

Thank you in advance for the enlightenment!

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Dv Acuma 34 on at

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RE: Bank Reconciliation Opening Balance

Hi Govinda Kumar,

Short story, opening balance of the bank account is showing on the bank account ledger page (right side). So, I'm trying to find a way to stop the opening balance from showing up on the bank account ledger side, as for obvious reasons, it is not a bank account transaction and won't show in our bank statement.

Thank you and regards,

Lawrence

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Govinda Kumar 2,294 Moderator on at

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RE: Bank Reconciliation Opening Balance

Hi Dv Acuma,

I have done something like this in business central.
Kindly tell me if is this what you're trying to achieve...

When we click the suggested lines for Bank Reconciliation, it only adds the entries of the Bank Ledger Table. When we post directly using bank accounts but the Account type is the Bank Account type it adds the entries in the Bank Ledger table, hence we do get the entries in Bank Reconciliation. So if we do use the bank account to do direct transactions but we won't selct the bank account type in that transaction and use the bank account it won't add the entries in the bank ledger entries table, which means we cannot get those entries during bank reconciliation.

So we did some customization to solve this problem..
If this is your problem kindly tell me so I could help.

Regards
Govinda Kumar

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Dv Acuma 34 on at

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RE: Bank Reconciliation Opening Balance

Hi Gavin,

I appreciate your input regarding this! However, won't my Bank Account Ledger be understated if I did this? Because I tried this in a dummy company, my G/L and Bank ledger are no longer balanced.

I understand that on the G/L side, nothing will change; however, on the Bank ledger side, I doubt it will create the same effect.

This is what happened upon doing the above procedure. I now have a negative ending G/L balance for October, this is the month in where I made the adjustment. Prior to this month, all of the ending balances are correct. However, when extracting the ledger for this specific account, it shows the correct amount and not the one that's showing on the bank reconciliation page. So, I'm a bit confused now. lol

Thanks and regards,

Lawrence

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Gavin 2,494 on at

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RE: Bank Reconciliation Opening Balance

Hi,

For an entry to have been created on the bank ledger entry side the opening balance for the bank account must have been of account type "Bank Account" in the opening balance journal.

If you are happy with the balance on the GL account you can always reverse this by doing a journal as per below. (this assumes the bank account has a debit balance )

This creates the following entries

The GL entries are in and out of the bank account GL account so no effect on the GL.

And one bank account entry

You can match these manually

Hope this helps

Thanks

Gavin

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DAnny3211 11,347 on at

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RE: Bank Reconciliation Opening Balance

hi

look documentation

learn.microsoft.com/.../bank-how-reconcile-bank-accounts-separately

DAniele

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