Bank reconciliation is the process of comparing transactions recorded in Business Central with transactions listed on your bank statement. Microsoft has updated the bank reconciliation and bank account linking functionality, providing an improved experience for users working in Business Central. This process helps ensure that your accounting records are complete, accurate, and aligned with your bank's records.

Importing a bank statement

Before starting a reconciliation, save the bank statement file locally and ensure it is closed. To begin:

1. Search for Bank Account Reconciliations in Business Central.
2. Select New to create a reconciliation.
3. Choose the bank account to reconcile.
4. Select Bank > Import Bank Statement.
5. Browse to and import the statement file.
6. Verify the statement date, statement number, and ending balance.

Once imported, the bank statement transactions are available for matching.

Using automatic matching

Business Central can automatically match imported bank transactions with bank ledger entries. To run automatic matching:

1. Select Matching > Match Automatically.
2. Enter a date tolerance.
3. Confirm the matching process.

The date tolerance determines how many days before or after the ledger entry date Business Central will search for potential matches. Matched transactions are highlighted in green, making them easy to identify.

Managing matches manually

Automatic matching may not always produce perfect results. If a transaction was matched incorrectly:

1. Select the bank statement line and ledger entry.
2. Choose Matching > Remove Match.

If a valid transaction was not matched automatically:

1. Select the appropriate lines.
2. Choose Matching > Match Manually.

This flexibility allows users to quickly correct exceptions during the reconciliation process.

Creating missing transactions

Occasionally, transactions appear on the bank statement but have not yet been recorded in Business Central. These transactions can be created directly from the reconciliation screen:

1. Select the unmatched bank statement line.
2. Choose Home > Transfer to General Journal.
3. Select the appropriate journal batch.
4. Assign the correct expense or revenue account.
5. Post the journal entry.

Once posted, the new transaction can be matched to the bank statement line.

Completing the reconciliation

Before posting the reconciliation, verify the following:

• All bank statement lines are matched.
• All lines display in green.
• The Total Difference equals zero.
• The calculated balance matches the statement ending balance.

When these conditions are met:

1. Select Post > Post and Print.
2. Review or print the reconciliation report.
3. Complete the posting process.

The reconciliation is then saved as a posted bank statement record.

Reviewing posted reconciliations

After posting, reconciliations can be reviewed from the bank account card. To access prior reconciliations:

1. Open the bank account card.
2. Select Bank Account > Statements.
3. Review previously posted statement records.

This provides an audit trail of completed bank reconciliations and historical activity.

Bank account linking and automation

Business Central also supports linking bank accounts directly to online banking services. This allows transaction data to be imported and processed more efficiently. While this session focuses on manual bank statement imports, organizations may benefit from bank account linking and automated reconciliation features where supported by their financial institution.

Key takeaways

• Bank reconciliations verify that Business Central matches your bank's records.
• Bank statements can be imported directly into Business Central.
• The automatic matching feature significantly reduces manual effort.
• Users can manually match or unmatch transactions when necessary.
• Missing transactions can be created directly from the reconciliation screen using General Journals.
• Reconciliations should only be posted when all transactions are matched and the difference is zero.
• Posted reconciliations remain available for future review and auditing.
• Bank account linking can further streamline and automate the reconciliation process.