Bank Accounts and Modes of Payment
ERPNext separates the financial institution, the company’s bank account, the General Ledger account, and the payment method. This keeps bank details reusable while accounting remains company-specific.
Understand the records
| Record | Purpose |
|---|---|
| Bank | Identifies the financial institution |
| Bank Account | Stores an account held by a company, Customer, or Supplier |
| Account | The Bank-type ledger in the Chart of Accounts |
| Mode of Payment | Describes how money is paid or received, such as Cash, Check, Card, or Wire Transfer |
Create a Bank
Go to Home > Accounting > Bank Statement > Bank and add the institution.
Add integration details only when you use a supported bank integration.
Create the company bank account
- Create a ledger account under Bank Accounts in the company’s Chart of Accounts. Set Account Type to Bank.
- Open Bank Account and click Add Bank Account.
- Select the Bank and enter the account name or number.
- Select Company as the party type when it is the company’s own account.
- Link the corresponding ledger account.
- Mark it as the company default only when appropriate.
Store only the information required for operations and reconciliation. Restrict access to sensitive bank details.
Configure Modes of Payment
Open Mode of Payment, select the type, and add a default account for each company.
For example, Cash should normally use a Cash-type ledger. A wire transfer or card settlement should use the relevant Bank or clearing account.
How ERPNext selects the payment account
ERPNext first uses a transaction-specific value when supplied. It can otherwise fetch a company default or the account mapped to the selected Mode of Payment. Always verify the paid-from and paid-to accounts before submitting a Payment Entry.
Bank statements and reconciliation
Use Bank Transaction records to import or synchronize statement lines. Then use Bank Reconciliation to match them with Payment Entries and Journal Entries.
Troubleshooting
A bank ledger is not selectable
Confirm it belongs to the same company, is not a group, is enabled, and has Account Type Bank.
A Mode of Payment selects the wrong account
Review its company-wise default accounts and the transaction’s company.