D365 Finance Bridging Payments: Handling Gaps Between Depositing Checks and Clearing the Bank

August 7, 2025

This is a common issue for many businesses due to post dated payments or just the time it takes for deposited checks to clear the customer’s bank account. The gap is that the payment is being financially recorded in your ERP system when it is entered and applied against a customer’s account, even though it hasn’t actually cleared yet.

In Dynamics 365 Finance there is a way to track these situations using Bridge payments. D365 Finance bridging payments use a clearing account to record these transactions so they can be reported in a clearing account upon initial posting and then moved to the actual Cash account when it clears. The steps are outlined below.

Go to Accounts receivable > Payment setup > Methods of payment.
Select an existing method of payment to enable bridging posting for. Alternatively, create a new method of payment.
Select the Bridging posting checkbox.
In the Bridging account field, select the main account that payments should be posted to before they are cleared to the bank account.

Close the page.

To create and process bridging posting, follow these steps.

Go to Accounts receivable > Payments > Customer payment journal.

Select New to create a journal.

In the Name field, select a name.

Add lines to the customer payment journal and select the method of payment that is configured for bridging posting.

Post the journal. The transactions will be posted to the main account that you selected in the Bridging account field in the previous procedure.

Notice that the payment creates a voucher that posts against the Accounts Receivable – Domestic account and the Received PDC account (i.e., Bridged account). The next step in the process will occur once the check has been cleared. Now you will need to transfer the payment from the Bridging account to the Bank account that is specified for the Method of Payment.

Go to General ledger > Journal entries > General journals.
Select New to create a journal.
In the Name field, select a name.
Select Lines to open the journal details.
Select Functions > Select bridged transactions.

Mark each payment that has cleared, and then select Accept.

Post the journal.

Once the journal is posted you will see the transfer/reversal from the Bridged account to the Bank account specified in the Method of Payment used for the original transaction in the journal voucher.