How I use the new GL Account Review functionality in Dynamics 365 Business Central
The purpose of this blog is to discuss how I use the Review Entries feature in Microsoft Dynamics 365 Business Central to reconcile my business credit card. This feature is great for reconciling balance sheet accounts because you can match debits and credits together to track what the remaining account balance is made up of.
Process and Setup
- Invoice is received and already paid via credit card.
- Invoice is received and will be paid via credit card at a later date.
Examples of entering vendor invoices
- Invoice received and paid via AMEX credit card already. Enter invoice into system as a Purchase Invoice and make sure to select AMEX as the Payment Method.
- Invoice received and will be paid via AMEX credit card at a later date. Enter invoice into system as a Purchase Invoice and leave the Payment Method blank.Posting Preview shows the G/L entry as follows and will show the invoice as outstanding in the subledger.Let's now pay this invoice at a later date. When adding the vendor payment to the payment journal update the balance account type to G/L account and use account 20108 as the balance account number. You won't need to add a bank payment type in this example because we are recording this entry as a credit card payment at this time.
AMEX monthly statement is received and entered into Business Central
- Open the Chart of Accounts page and search for account 20108.
- Click on the balance amount to open the general ledger entries window.
- Select Review Entries on the action bar.
- The next step is to review the transactions on the AMEX statement against the entries showing in the Review G/L Entries window. I'm showing two transactions for Ingram for $840 each, which shows on my credit card statement. I highlight them on the statement to show that they've already been entered into the system. Once you complete the review it's time to enter the AMEX statement into the system.
- I enter the statement into the system through a Purchase Invoice. The important thing is that the transactions that have already hit G/L account 20108 you would enter as a G/L Account transaction to that account. That will create the debit we need to offset the payment (credit) we entered earlier with the payment method and payment journal.
If you have other charges on the statement that haven't been entered into the system, yet you can add those to the purchase invoice as well. Example of this is lines 3 and 4 below for office supplies and meals expense.
TIP: export your statement transactions to Excel and then copy/paste them into the system to streamline the process. To learn about copy/paste check this blog out: Copy/Paste A Journal Entry Into Dynamics 365 Business Central (kristenhosman.com)
- The vendor invoice is paid through the payment journal as normal.