Bank Accounts

Set Up Bank Accounts

You use bank accounts in Business Central to keep track of your banking transactions. Accounts can be denominated in your local currency or in a foreign currency. After you have set up bank accounts, you can also use the check printing option. The bank accounts includes extra functionality for payment reconciliation, bank reconciliation, and the import and export of bank files. The bank accounts can also be included in transactions in the general journals. Each bank account is linked to an account in the chart of accounts through the assigned bank account posting group. Using a bank account in a payment transaction will automatically create an entry in both the bank account and the connected G/L account.

Bank accounts work differently depending on whether a currency code is specified:

• Currency code is blank

All transactions in the bank account will be in the local currency (LCY) for the current company. If a transaction is made to the account in another currency, the amounts are posted to the account in LCY based on the relevant currency exchange rate. Any checks that are issued from this account must be issued in LCY. If the bank account is used in a journal, the journal line will automatically inherit the blank currency code.

• Currency code is specified

All transactions that are made to this account must be in the same currency as is specified on the account. All checks that are issued from this account must also have this currency.

To set up bank accounts

1. Choose the  icon, enter Bank Accounts, and then choose the related link.
2. On the Bank Accounts page, choose the New action.
3. Fill in the fields as necessary. Hover over a field to read a short description.