The New Way to Do Bank Reconciliation in Dynamics 365 Business Central

The upcoming 2023 Wave 1 update to Dynamics 365 Business Central will be changing the behavior of bank reconciliations.

Read the 2023 release wave 1 details here. Stay tuned for an upcoming blog that will feature some other highlights from this list.

With respect to the changes that will impact bank reconciliations, we recommend that you explore this new functionality as soon as possible. You do not have to wait for the Wave 1 release to prepare for this, as the new functionality is currently available and only needs to be turned on in a sandbox for your team to get ready.

Encore strongly recommends preparing for this change to Bank Reconciliation by updating a sandbox environment in advance of scheduling your Wave 1 update.

Please review our blog for instructions on how to get an updated sandbox.

The original Business Central reconciliation functionality compared the bank ledger, cheque/check ledger and general ledger entries. The page displayed the data in a vertical format where the General section displayed balances, and the cheque/check subsection displayed the reconciliation entries.

This style of reconciliation is being retired.

The new reconciliation screen is designed to use functionality that allows auto matching of Statement Line entries to Bank Ledger entries. It also includes an optional ability to import bank statement lines.

To turn on the new Bank Reconciliation in your sandbox environment:

Quick steps:

1. Either post or delete any in-progress bank reconciliations.
2. Search for Feature Management and turn on the “Standardized bank reconciliation and deposits” functionality by changing the “Enabled for” dropdown to All Users.
   • You will need to close out and go back in for it to take effect.

   

3. Start a new reconciliation in the Bank Account Reconciliation page. This reconciliation tool relies on having Bank Statement Lines to match against the Bank Ledger Entries lines. These Statement Lines can be created two ways:
   • You can insert these manually by clicking on Process and Suggest Lines.
   • You can use the wizard to create an Import File Format by clicking on Bank and Import Bank Statement.

Further Resources

• Encore Business Central YouTube – Bank Reconciliation
• Bank Reconciliation Improvements in Dynamics 365 Business Central
• Bank Integration in Dynamics 365 Business Central

For help with your Dynamics solutions, please contact us.