Bank Reconciliation Page vs Bank Rec. Worksheet in Business Central

By - October 26, 2021

I’ve been hearing that there is some confusion around the bank reconciliation process in Microsoft Dynamics 365 Business Central. It is my hope that this discussion helps clarify the differences in the bank reconciliation process.

First, let me explain that there are two main options for processing the bank reconciliation in Business Central – either performing the reconciliation with automatic matching or not. This is a configuration/setting on the General FastTab on the General Ledger Setup page and actually changes the look of the bank reconciliation depending on which way you set the switch. It should be noted that this option is only available in the North American version of Business Central.

If you choose to not utilize the Bank Reconciliation with Auto. Match, then the bank reconciliation is set as worksheet with sections for checks and deposits. This does not offer the option to import the bank statement files. If you choose to utilize the Bank Reconciliation with Auto. Match, then the bank reconciliation page is split in half with one side reflecting the bank account statement lines and the other half being the bank account ledger entries. You then are tasked with matching the statement lines with the ledger entries. There is automatic matching, manual matching, and the ability to remove a match. This option also allows for import of the bank statement file or feed and you can use the automatic matching suggestions. This can be imported through a connection (link) with the bank or as a separate file that you download from your bank. Of course, the data exchange files must be configured according to your bank’s file requirements. This option also provides you with the capability of manually processing the bank statement through the use of suggest lines.

I personally prefer the later (with automatic matching) so that I can link my bank and import the bank statement into Business Central. I like that the application can assist me with matching the bank statement lines to the bank account ledger entries. The bank account ledger entries are the transactions that are processed against the bank account in Business Central. The match can be one bank statement entry to one or more bank account ledger entries. Once they are matched, they are reflected with a green font so that you know that they are matched. If there is no match, then the Difference field contains a value. You must resolve the difference before you can complete the reconciliation. This could be due to a transaction that occurred in Business Central but did not take place at the bank or perhaps a bank transaction that was not posted in Business Central.

The Bank Acc. Reconciliation and the Bank Rec. Worksheet both contain the Bank Account Number, Statement Number, Statement Date, and the Statement Balance (either the Balance on Statement or Statement Ending Balance). Both options allow you to print a Test Report and have options to print outstanding transactions.

One difference being that the worksheet splits the transactions between the checks and the deposit/transfers. However, the payments made without a bank account type then appear in the deposit/transfers section rather than in the checks section.

The Bank Acc. Reconciliation does contain all the Bank Account Ledger Entries that have not yet been closed. This includes all entries that have been made even those posted after the statement date. You are able to filter the Posting Date to narrow down the amount of data, but these entries will appear as outstanding on your test report. Meaning that if you postpone your bank reconciliation until after you make entries into the next month (or months), then those transactions will also appear in your bank reconciliation in the bank account ledger entries.

The Test Report then shows these entries as outstanding transactions. The Ending Balance on this report shows the current balance in your bank account in Business Central. I have discovered though, that the Outstanding Bank Transactions does not look like it calculates correctly. Thus, causing some confusion. It is because of how the Deposits are displayed and it makes it look like they are not being included in the Total Outstanding Bank Transactions. But, in fact they are. The Deposit is listed and then the transactions that made up the deposit are listed right below it. The report indents the posting date for the entries.

In both options, the Difference on the Test Report must be zero before the reconciliation can be posted.

I hope that helps clarify some of the differences between the two options in performing bank reconciliations in Business Central.

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