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Small and medium business | Business Central, N...
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Reconciling Balance Sheet Accounts

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Posted on by BS-24012015-0 2
Hi all,
 
I am new to using Business Central.  In prior accounting systems that I've used, I have used "accounting schedules" to reconcile the balances on a company's balance sheet accounts, but can't find an equivalent.  It seems that "account schedules" in Business Central is a tool to create custom reports using multiple accounts rather than an in depth look into what makes up the balance of 1-5 balance sheet accounts.  Here are some examples of what I am trying to accomplish.
 
As an example, we would accrue commissions for employees by posting a credit to the account by the employee number at month end.  Then, when payroll posts at the beginning of the post ahead month, we would post the payroll debits to the same account by employee number to clear the accrued expense.  Following the payroll posting, we would run a schedule for that account which would breakdown the outstanding balance with subtotals by employee number.  In theory, the account should be zero and all employees should have a zero balance as well.  However, that doesn't always happen.  We could have small debits and credits on an employee number or two.  The accounting schedule helps us identify incorrect payments or write offs.
 
Another example is credit card receivables.  When a cashier's credit card terminal is batched out, we post the debit to credit card receivables by batch number.  Then, once the credit card funding comes through the bank, we post the credits to these batch numbers.  At any point during the month, we can run the credit card AR schedule to verify that the balance in the account doesn't include any aged receivables.  Additionally, some credit card merchants net fees and chargebacks with funding.  If we don't use a schedule to monitor the balance, how would you know that you have properly expensed fees and attempted to collect on all chargebacks?  (I know that some private companies post credit card receivables directly to cash in bank, but according to US GAAP this should not be recognized unit the funds credit the bank.)  Attached is an example of the schedule "dirty" before we match the debits with credits for American Express credit card receivables.
 
There are several other examples that I could come up with including customer deposits, prepaid expenses, deferred income, etc.  Please, help me find a solution.
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Dynamics 365 Business Central
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  • BS-24012015-0 Profile Picture
    BS-24012015-0 2 on at
    Reconciling Balance Sheet Accounts
    Thank you for the response, Valentin.  I did consider that option as well.  It should work for smaller balance sheet accounts like accrued real estate tax.
     
    An example of something that I'm concerned this won't work for is deferred income.  I will have about 2,000-5,000 customers per year that will each have balances of $5-50 on prepaid loyalty cards, spending and reloading money on them routinely.  I need to schedule out these cards, so I know how much is on each and how old the activity is.
     
    Could I setup an account to work similarly to an AR account?  Such as posting the deferred income to customers and keeping track of the age for that customer on an AR or AP schedule? 
  • Suggested answer
    Mustafa Omerbegović Profile Picture
    Mustafa Omerbegović 1,188 Super User 2025 Season 1 on at
    Reconciling Balance Sheet Accounts
    Hello,
     
    That will be Finance reporting in BC.
     
    Business value
    In order to make it easier for new users to get started with Business Central, we rename the account schedules capability Financial Reporting. We also separate the definition of a financial report from that of the definition of rows and columns, so that it's clearer that a financial report is a combination of row and column definitions plus additional parameters.
     
    More you can read on the link below 
     
     
    Greetings
  • Suggested answer
    Valentin Castravet Profile Picture
    Valentin Castravet 25,642 Super User 2025 Season 1 on at
    Reconciling Balance Sheet Accounts
    Business Central has the Review General Ledger Accounts functionality, it sounds similar but a little different as well - Review general ledger accounts - Business Central | Microsoft Learn
     
     
     
     
     

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