In this training demo, you will learn how to reconcile payments made to your bank accounts using an automatic application.
Below is a transcription of this video:
“We’re going to look at what’s called the Payment Reconciliation Journal which is where you link Business Central up to your bank. So, there are couple of things here where this thing can come in handy. So they have an example one here: Business Central has the capability to link BC up to your bank through Envestnet Yodlee Investment services and as the bank clears the payments that you make to vendors, wires or checks that you deposit from your customers, you can match them if something is already is posted in BC or you can make the posting for what that is from the journal. So, if I open up this example journal, I have everything matched. Let’s take that this away.
So, if we are looking through the journal, what we are seeing is that here’s the Transaction Text that’s coming in from our bank. Our bank has received- we see payments being made, money being received, and they are giving us some information about what that’s for. So here, if I want to look through what I can potentially match this to, I can do manual application here and apply that to something that I had already posted, may be a check that we posted and sent out. And now we are seeing that check has cleared the bank and I want to clear that. So, it kind of works like a daily bank reconciliation in that way.
The other thing that we can do from here is- and this may be gets to a potential way to handle recurring payments or something that is a direct debit every month to your bank. With the bank feed on, you can also transfer this difference to an account. So, let’s say for an example, this is a loan payment and we want to draw down on a liability that we have on our books. We can take that payment and transfer that to a G/L account, may be transfer to a customer or vendor. We can even transfer between bank accounts from here. This posting has not been made in Business Central, but I can make it from here. So, I can select the account number I want to move that to. It was a transfer between accounts, transfer into savings.
When I choose that as the method for handling this transaction, if I were to decide to process this and post these payments, these payments won’t impact my general ledger, they will just clear, they will just tell the bank in the reconciliation module in Business Central that the bank cleared these. We have identified that as being cleared. But first when we create the posting for, it will credit cash and debit what we have on the other side of the transaction we choose. What BC won’t do is just automatically generate a check or a wire but if the bank is doing that or something is automatically happening on the bank side, the payment reconciliation journal will give you the ability to do the posting from that transaction that the bank has reported.”
Other training videos that might be of interest to you:
• Introduction to Fixed Assets in Microsoft Dynamics 365 Business Central
• Overview of Accounts Payable in Dynamics 365 Business Central
• Cash Receipts Functionality in Microsoft Dynamics 365 Business Central