Bridging Account

Finance and Operations/AX User Forum
1

Hi all

Kindly anyone explain me about Bridging Accounts.How we can set them.

Artata

2

Hi,

Following link may help:

http://blog.ignify.com/tag/dynamics-ax-bridging-accounts/

http://dynamicsuser.net/forums/p/47766/243599.aspx

One suggestions: There are many knowledge based posts already there in the forum. If you search them then certainly you will get some result.

Pranav…

3

Hi Pranav,

Thanks for your reply. It is very helpful but i can’t understand what actually it is?

Artata

4

Let me explain with you an example.

Suppose i am your vendor and for a certain invoice you pay me using a check on say 01/01/2012. So in your system you will post an entry such that vendor account will be debited and the bank account will be credited.

It so happens that i deposit the check on 3/1/2012 and let’s say bank clears the check on 3/1/2012. Now notice here the difference in the bank account as per system entry and bank actual entry. In your system bank transaction reflects that the amount is credited on 01/01/2012 but when bank statement comes, there the check has been cleared on 3/1/2012. So there is a difference between the system transaction and bank statement and this can be important if the check is deposit after a longer period of time.

To address this issue, bridging account is used. It acts as a temporary account. Using bridging account, when you post the transaction, actual bank is not hit, instead bridging account is hit. after sometime when you get the bank statement, you can post the transaction from bridging account to main account.

Example, in the above case, on 01/01/2012, Vendor account will be credited to bridging account. After you get statement on 4/1/2012, another entry will be posted on 3/1/2012 where bridging account will be debited to bank account.

Using these feature, it will be lot easier to reconcile bank statements.

Pranav…

5

Hi Pranav,

Splendid work Pranav. I got it exactly.

Thanks alot

Artata