Mastering the Month End Close Process with NAV: Bank Reconciliation & Foreign Exchange

As with other ERP solutions, the month end close process in Microsoft Dynamics NAV is unique. This series leverages what is unique to NAV in order to help you draft your own period-end checklists and covers the following areas:

• The General Ledger
• Accounts Payable and Accounts Receivable
• Bank Reconciliation and Re-Evaluating Foreign Exchange Balances (this blog post)
• Fixed Assets and Inventory

As part of our Mastering the Month End Close Process with NAV series, this post covers how to tackle bank reconciliation and re-evaluating foreign exchange balances as part of month end in Microsoft Dynamics NAV.

In this post I’ll outline how to perform how to tackle bank reconciliation and re-evaluating foreign exchange balances as part of month end in Microsoft Dynamics NAV.

While the bank account is typically reconciled throughout the month, when it comes to the month end close process, there are special adjustments and fees that are often posted to the last day of the previous month. With these transactions, you can enter them directly on your bank reconciliation in the ‘adjustment lines’ worksheet area of the bank reconciliation.

To enter your adjustments:

• Scroll to the bottom of your bank rec. and expand the Adjustments tab;
• Enter the Posting Date (typically the statement date) of the line item;
• Select the relevant G/L account (e.g. “Bank Fees”, “Interest Expense”, etc.);
• Select the balancing bank account;
• These will post when you post your bank rec.

Some clients will allow their customers and vendors to invoice / be invoiced in foreign currencies and, therefore, require tracking and posting of realized and unrealized gains and losses on foreign currency exchange.

This multicurrency management functionality inherently exists in NAV and can be accomplished by following the steps below:

• Go to Currencies by either using the search function or navigating to Departments > Administration > Application Setup > Financial Management > Finance > Currencies;
• Select the currency you would like to adjust and click on Exch. Rates in the ribbon;

Change the exchange rate in the window that pops up as necessary and click OK;

Click on the Adjust Exchange Rate button in the ribbon;

Enter the applicable fields and ranges and click OK to run the routine;