Dynamics 365 Business Central: Bank Reconciliation (Amex)

Dynamics 365 Business Central: Bank Reconciliation (Amex)

Hey everyone, we're going to get into bank reconciliations a little bit actually, our theme sort of lately has been   automation and how the system can be doing things easier for you or figuring things out, like with artificial intelligence, automatically figuring out if you're running out of stock things like that. 

In Business Central there's been some improvement made in the bank reconciliations and you can for example, automatically collect using services to your credit card or to a back. and I’m going to just go a little bit into that and show you how for example a credit card statement can be imported into the bank account reconciliations so let's take a look. 

Now, looking at bank reconciliations in business central there's a couple of things that you must be aware of. First, if you're trying this out in the Cronus database if you’re connecting to an outside service like American Express, it's not going to work if you are using the evaluation database like Cronus or evaluation company. Here I'm logged in to one of our food demo companies it's called the Yellow Submarine foods and it's going to work here because that's not an evaluation company, let me just go ahead and get into the bank account, I get into bank accounts here and I've created a new back account   called American Express. The idea here is that we are going to bring in transactions from American Express into the bank reconciliation so that we can post them in our system and categorize them. 

We're using a bank account to handle credit card transactions and inside this bank account we have the Amex posting group setup. If I go into that posting   group I can see that we have Amex connected to GL account 20500 which is a payables account and that's where we're going to hit with all our mixed transactions. All Right, let's see how the magic works, I’ve actually linked this account by clicking here to Amex. All I had to do was click on this type in American Express type in the username and password and now they are linked, so you can see here the linking status is linked. This is something you can only do in a non-evaluation company and I've already done that. 

Bank reconciliations
So, if I go into bank account reconciliations and create a new one, just select this account. I can go ahead and import bank statement, now if I click on that, it's going to automatically bring in transactions. I just hit ok and now you can see the transactions come over. These are expense transactions on Amex that are just fueled straight out of the Amex system into business central. Now, the funny part about this is I cannot like to apply this to accounts right here or select the accounts and Post, this hasn't been posted in my system yet. So, normally when you have expense transactions like this, you don’t post them beforehand and then match them out by inputting the statement like you would in a normal bank account. How can you do in the base system easily so that you can post these transactions, you know right off the back rack so import transactions and post the transactions how can you do that? 

The way to do that, is transfer it to the general journal, click on that, pick the general journal here and just the default batch here ok then all these transactions move over to the general journal. And here we have the balancing account being the bank account and the account number which is the expense account over here. I can go ahead and find the expense accounts that match what I'm doing here, I'm using the standard system, so I'm going to just say this is all advertising expense.  

Just go ahead and skip this one for a second, I'm actually just going to delete the payment that came in here, and now I'm going to go ahead and post this, now all the transactions that I downloaded from the statement have been posted in the system. And have now generated basically values in the chart of accounts so I should be able to come back here and now you can see that these transactions are in the system and they're on this side, so I can automatically match this out with tolerance, and no everything is matched except to pay the payment of course I could have posted the payment as well I just would hit a different account and then finally when I get the payment in I can just go ahead and post this back   reconciliation. And the bank is in balance. I hope you got something out of this, this is a way to handle credit card transactions that are coming in from a service like American Express.