Setting up outstanding transactions for Bank Account to complete migration

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Posted on by DW-13012151-0

My company is migrating from Microsoft Dynamics 365 Finance & Operations to Microsoft Dynamics 365 Business Central. We are a small organization (6 accounting staff, 2 IT personnel, 2 finance personnel) but have many companies under our management (mostly real estate holding companies). Each company has at least 4 different bank accounts for various aspects of operations.

We are attempting to setup our bank accounts as of January 1, 2025. Each account has been open during 2024 and has outstanding transaction activity as of 12/31/2024. The third-party seller we are working with for the data migration has not been able to assist with the proper setup steps and procedures for setting up the opening balance of the bank accounts, including how we need to enter the outstanding transactions as of 12/31/2024.

As part of the data migration, we have been advised to import all of our General Ledger activity from 2024 (including the bank transactions from throughout 2024) through a General Journal posting of the historical transactions. At this point, we simply need to know how to get the bank accounts properly setup as of January 1, 2025 so that they have the correct opening balance and outstanding transactions so that we can begin the bank reconciliation process for 2025.

Any assistance would be greatly appreciated.

Dakota

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Dynamics 365 Business Central migration

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Valentin Castravet 31,340 Super User 2025 Season 2 on at

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This is a common request during implementations, so it's concerning that your consultant doesn't know how to handle it.

To load the opening balance and outstanding transactions, typically, in the General Journal, you would create an entry to the Bank Account Card with the following three items:

Bank statement balance as of December 31

List of outstanding checks as of December 31

List of outstanding deposits as of December 31

In the General Journal, the balancing account to each entry above would be the GL account linked to the Bank Account Card. These entries will load your opening balance to the bank card, but leave the GL unchanged.

The sum of these three entries should match both your opening balance to the bank account card and your bank GL account balance that is loaded separately. Once this is posted, you can proceed with a Bank Reconciliation for December 31. In this reconciliation, you simply match the first line you posted—the bank statement balance—so that the outstanding checks and deposits remain for the January reconciliation.

This is the standard approach for loading opening balances without historical transactions. Do you need historical transactions? Most implementations don’t bring them over, but if you do, your historical transactions would essentially be the three entries mentioned above.

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/

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DW-13012151-0 12 on at

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@Valentin Castravet thank you for the response!

As follow up, we do need the historical transactions for the entire General Ledger and have followed their guidance for that process. The entries that make up the outstanding checks and outstanding deposits are included in the data that has been provided to the consultants for importing to the historical general ledger. The transactions were imported through a General Journal import (example screenshot below of template that was used with transactions that were provided).

Should something have been completed differently to differentiate between the historical transactions that had previously cleared the bank and those that are outstanding as of 12/31/2024?

Also, if I follow the steps that you provided in your response, will that result in these entries posting to the General Ledger account balance in addition to the Bank Balance? If so, I imagine that I would need to post an additional entry against the General Ledger account only to offset this impact. Would that be correct?

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Valentin Castravet 31,340 Super User 2025 Season 2 on at

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Should something have been completed differently to differentiate between the historical transactions that had previously cleared the bank and those that are outstanding as of 12/31/2024?

Just to confirm I understood correctly—was the original plan to bring historical transactions into the GL only, while the subledgers (Bank, AP, AR) would contain only opening/outstanding entries and balances?

There are multiple ways to load historical data, but typically, if you want historical transactions in the subledgers, you would start with subledger transactions first. When you post them, the system automatically updates the GL as well. Then, when bringing over GL historical transactions, you only include those not tied to a subledger, since subledger transactions would already exist in the GL. However, since it seems like all GL historical transactions were brought over first, I assume the plan was to load only opening balances for the subledgers.

If you're bringing historical transactions to the GL but only opening balances to the Bank subledger, then nothing needed to be done differently to differentiate between the historical transactions that had previously cleared the bank and those that are outstanding as of 12/31/2024.

However, if you were also bringing these historical transactions into the Bank subledger, you would have had to recreate all posted bank reconciliations to clear out previously cleared transactions. This is why bringing over historical transactions can be complex and time-consuming.

Also, if I follow the steps that you provided in your response, will that result in these entries posting to the General Ledger account balance in addition to the Bank Balance? If so, I imagine that I would need to post an additional entry against the General Ledger account only to offset this impact. Would that be correct?

No, in the General Journal, for each entry you would:

Set the Account Type to Bank Account and select the specific Bank Account Card in the Account No. field.

Set the Bal. Account Type to G/L Account and select the corresponding GL bank account in the Bal. Account No. field. This ensures any balance is only posted to the bank card without affecting the GL balance.

For example, in the screenshot below, I have a debit of $100 going to the Bank Account Card "CHEQUING". This Bank Account Card is linked to GL account 11200, so a debit of $100 would also post to GL account 11200. However, since the Balancing Account is also 11200, a credit of $100 is posted to 11200 as well.

As a result, in the bank card I would have a bank balance or debit of $100. In the GL, there will be two entries—one debit and one credit—that cancel each other out, ensuring no net impact on the GL balance.

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/

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