This blog will help you gain a better understanding of how to reconcile sub ledgers to the General Ledger in Microsoft Dynamics NAV.
The reconciliation checks for each period sub ledger so that the balances of the General Ledger Accounts in general ledger match the balances of the assigned sub ledger accounts. For example, compare the balances of the Trade Debtors accounts in General Ledger against the balances of the assigned Customer in Receivable.
This process helps you find differences between sub-module (i.e. Receivable, Payable, Bank) and General Ledger. The General Ledger balance for the Receivable should agree with the total on the report generated from sub-module (i.e. Aged Accounts Receivable).
Normally, if you are posting everything through from the sub ledgers to the General Ledger, the balances should match without any issue.
What can cause the difference?
There are a few factors that can cause discrepancies between sub ledgers and the General Ledger Balances:
- Entries posted in the sub-ledger is adjusted/corrected at the General Ledger level
- Manual posting to the sub-ledger control account in General Ledger
Therefore, we suggest that you regularly review the General Ledger accounts to ensure the control account (account assigned in Posting Group such as Customer, Vendor, Bank, Fixed Asset and Inventory) does not allow Direct Posting to the G/L account.
What accounts should be reconciled?
The General Ledger account setup in Posting Group (i.e. Customer Posting Group, Vendor Posting Group, Bank Posting Group, Fixed Assets Posting Group and Inventory Posting) determines which general ledger account system posts the transaction. Therefore, the total value generated from the sub-module needs to match with the control account in General Ledger.
What reports should be used for reconciliation?
As part of the reconciliation process, we recommend that you run the following report for the reconciliation:
Katrine Ng is a Senior Solution Specialist at EBS and has a successful track record in project managing, implementing and delivering high-quality solutions. She likes to help customers translate their needs into business and user requirements. She has worked with Microsoft Dynamics 365 Business Central and Dynamics NAV in Australia and Malaysia since 2003.