import { Callout } from "zudoku/ui/Callout";

# Transit Account for Bank Postings

The **transit account** enables a two-stage bank posting: an initiated payment is first posted against an interim account. Only once the bank has actually executed the transaction and the bank account ledger entry is closed through the payment reconciliation journal is the amount moved to the bank G/L account.

The bank G/L account therefore only shows amounts that have actually moved, while payments that have been initiated but not yet executed remain visible on the transit account.

## Setup

1. Choose **Bank Account Posting Groups** in the search of Microsoft Dynamics 365 Business Central.
2. In the **Transit Account No.** field, enter the G/L account that bank entries of this posting group are posted to instead of the G/L Account No.

{/* TODO Screenshot: /assets/images/365-business-banking/bank-acc-posting-group-transit-account.en-US.png — Bank Account Posting Groups with the Transit Account No. field */}

<Callout type="tip" title="Recommendation">
Use a dedicated G/L account for transit postings. Its balance then always equals the total of the payments that have been initiated but not yet executed.
</Callout>

## Posting logic

### Stage 1: initiating the payment

When a payment is carried out and posted, the only difference from the standard is the G/L account of the balancing entry:

- The **bank account ledger entry** is created as usual and stays **open**.
- The **balancing entry** goes to the **transit account** instead of the bank G/L account.
- The bank account ledger entry records which account was used in the **Transit Account No.** field.

### Stage 2: clearing through payment reconciliation

As soon as the bank transaction has been retrieved and the bank account ledger entry is closed through the **payment reconciliation journal**, 365 business Banking automatically moves the amount from the **transit account** to the **bank G/L account** of the posting group. The bank account ledger entry is then marked accordingly in the **Transit Account Cleared** field.

<Callout type="info" title="Automatic transfer">
The transfer happens automatically when the bank account ledger entry is closed – no manual intervention is required.
</Callout>

<Callout type="note" title="Exception: posting and reconciling in one run">
If the payment reconciliation journal posts the payment and reconciles the bank statement in the same run, the bank account ledger entry is never open. In that case the balancing entry is posted directly to the bank G/L account and the transit account is not used – there would be nothing to clear.
</Callout>

## Review

The two fields **Transit Account No.** and **Transit Account Cleared** are available on the **Bank Account Ledger Entries** page. They are hidden by default and can be shown through personalization. This lets you see, per bank entry, which transit account was used and whether the amount has already been transferred.

<Callout type="tip" title="Good to know">
Transit postings are primarily useful at G/L entry level, because standard Microsoft Dynamics 365 Business Central does not track an entry status (Open/Closed) for G/L entries. In bank entries, transactions that have not been executed can be identified through the **Open** field instead.
</Callout>

## See also

- [Payments](bank-payment.mdx)
- [Bank Account Reconciliation](bank-reconciliation.mdx)
- [Transit Accounts for Payments](features/details/transit-payments.mdx)