Clear bridging payments using advanced bank reconciliation

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A bridging payment is a payment that is recorded in the general ledger in two stages. Usually, the payment method is Bank, and the transactions are posted to the bank account only after the payment clears. However, it can also be used with a ledger account. In this scenario, the payment amount is transferred from one main account to another when the bridging posting is executed. All bridging payments must be cleared in the general journal. This feature automatically clears them when the advanced bank reconciliation worksheet is marked as reconciled.

Prerequisites

There is a set of prerequisites that need to be completed prior to using the clear bridging payments functionality:

• In Feature management, enable the Automatic clear bridged transactions through advanced bank reconciliation feature.
• On the Methods of payment page, set the Bridging account by bank account parameter.
• On the Bank accounts page, select the General tab and set up the bridging account.
• On the Bank accounts page, select the Reconciliation tab and enable the Clear bridged transactions during reconciliation parameter.
• On the Cash and bank management parameters page, select the Bank reconciliation tab and enable the Clearing journal name parameter.

Create a bridging payment on a payment journal

To create a bridging payment on a payment journal, follow these steps:

1. Go to Accounts receivable > Payments > Customer payment journal to create and process a bridging posting.
2. Select New in the Action Pane.
3. Enter a name in the Name field.
4. On the Customer payments page, add lines to the customer payment journal.
5. Select the method of payment that has been configured for bridging posting.

Clear a bridging payment on the reconciliation worksheet

You must complete the bank statement reconciliation to clear a bridging payment on the reconciliation worksheet. Select Mark as reconciled on the reconciliation worksheet. After you mark as reconciled on the reconciliation worksheet, the clearing journals are automatically posted to the general ledger.

Clear bridging payment by using a batch job

If posting errors happen in clearing journals during bank reconciliation, you can resolve the issues and then rerun the clearing of bridging payments.

1. Go to Cash and bank management > Periodic tasks > Clear bridged transactions to fix posting failures.
2. Select the Reconciliation ID value > OK.