---
title: "Bank Account | ERPNext Documentation"
description: "Create ERPNext Company and party Bank Accounts and connect them to the correct bank ledger."
space: "ERPNext"
url: "https://docs.frappe.io/erpnext/bank-account"
updated: "2026-07-31"
---

A **Bank Account** represents a real bank or card account held by a Company, Customer, or Supplier. For a Company account, it connects the Bank master to a Bank-type General Ledger account used by payments, statement imports, and reconciliation.

## Before you begin

Create the [Bank](/erpnext/bank) and, for a Company account, a ledger under Bank Accounts in the [Chart of Accounts](/erpnext/chart-of-accounts). Set the ledger's **Account Type** to **Bank** and use the correct Company and currency.

Do not confuse these records:

- the **Bank** is the financial institution;
- the **Bank Account** stores the real account identity and ownership;
- the **Account** is the General Ledger where the Company balance is posted.

## Create a Bank Account

1. Go to **Accounting > Banking > Bank Account**.
2. Select **Add Bank Account**.

![Bank Account list with Add Bank Account highlighted](https://novacompanies.m.frappe.cloud/files/banking-04-bank-account-list.png)

3. Enter an **Account Name** that users can identify, such as `Operating Account` or `Payroll Account`.
4. Select the **Bank**.
5. Select **Is Company Account** when the account belongs to one of your Companies.

![Bank Account ownership and Bank fields](https://novacompanies.m.frappe.cloud/files/banking-05-bank-account-ownership.png)

6. For a Company account, select the **Company** and **Company Account** ledger.
7. Select **Is Default Account** only when this should be the default Bank Account for the Company.

![Company ledger and default Bank Account setting](https://novacompanies.m.frappe.cloud/files/banking-06-bank-account-ledger.png)

8. Enter the account number, routing or branch code, IBAN when applicable, and other non-secret identifiers.
9. Save the Bank Account.

## Create a Customer or Supplier Bank Account

Leave **Is Company Account** clear, then select the **Party Type** and **Party**. Use this for payment instructions, refunds, or other workflows that need the counterparty's banking details.

A party Bank Account does not become a Company ledger and should not be selected as the account that posts Company cash movement.

## Important fields and what they mean


| Field                | What it controls                                                                                                     |
| -------------------- | -------------------------------------------------------------------------------------------------------------------- |
| Account Name         | Human-readable identifier for the real account.                                                                      |
| Bank                 | Financial institution that holds the account.                                                                        |
| Is Company Account   | Shows Company and ledger fields and marks the account as belonging to your organization.                             |
| Company              | Company that owns the account. It must match the linked General Ledger account.                                      |
| Company Account      | Bank-type General Ledger account used for accounting entries.                                                        |
| Is Default Account   | Makes the Bank Account the default where that workflow uses a Company default. Maintain only one intended default.   |
| Is Credit Card       | Identifies a credit-card account where supported by the workflow.                                                    |
| Party Type and Party | Owner of a Customer, Supplier, Employee, or other party Bank Account.                                                |
| IBAN                 | International account identifier used in participating countries. Leave it empty when the country does not use IBAN. |
| Branch Code          | Routing, sort, transit, or other branch identifier used in your banking system.                                      |
| Bank Account No      | Account number supplied by the institution. Avoid exposing it in public screenshots or broad exports.                |
| Integration ID       | Identifier used by a supported bank integration.                                                                     |
| Disabled             | Prevents the account from being selected for new activity while preserving history.                                  |


## Use the Bank Account

The Company Bank Account is used by:

- [Payment Entry](/erpnext/payment-entry) and payment requests;
- statement synchronization or import;
- [Bank Transaction](/erpnext/bank-transaction) records;
- [Bank Reconciliation](/erpnext/bank-reconciliation);
- [Bank Guarantee](/erpnext/bank-guarantee);
- other banking integrations and reports.

Configure [Mode of Payment](/erpnext/mode-of-payment) Company defaults so cash, check, card, and wire payments use the intended ledger.

## Data protection

Limit access to full bank account numbers and integration identifiers. Documentation and support screenshots should use fictional or masked numbers. Do not store online-banking passwords in the account number, Statement PDF Password, comments, or attachments.

Use **Statement PDF Password** only for the supported encrypted-statement workflow and restrict who can read or modify it.

## Troubleshooting

### The Company Account cannot be selected

Confirm that it belongs to the selected Company, is not a group, is enabled, uses the correct currency, and has **Account Type: Bank**.

### Payments use a different ledger

Check the Mode of Payment Company default, the selected Bank Account, the Company's default Bank Account, and any account filled directly on the transaction.

### Bank Transactions are assigned to the wrong Company

Review the Bank Account ownership and linked ledger. Correct the master before importing more statement lines.

### The IBAN is rejected

Enter an officially valid IBAN without inventing a country prefix. Leave the field empty for accounts in countries that do not use IBAN.

### The account should no longer be used

Disable it instead of deleting it. Historical payments, Bank Transactions, and reconciliation records may still reference it.

## Frequently asked questions

### Can one Bank Account link to several ledgers?

It cannot. Create a separate Bank Account for each real account and Company ledger relationship.

### Can two Companies use accounts at the same Bank?

They can. Use one Bank master and separate Company Bank Accounts and ledgers for each Company.

### Is a credit card a bank or liability account?

The accounting ledger classification depends on your Chart of Accounts and local accounting policy. Mark the Bank Account as a credit card where appropriate and confirm the linked ledger treatment with finance.

## Related topics

- [Bank](/erpnext/bank)
- [Chart of Accounts](/erpnext/chart-of-accounts)
- [Mode of Payment](/erpnext/mode-of-payment)
- [Payment Entry](/erpnext/payment-entry)
- [Bank Transaction](/erpnext/bank-transaction)
- [Bank Reconciliation](/erpnext/bank-reconciliation)