Account type: Bank

Account type Bank marks a GL account as the balance of a real bank account, which changes how the desk treats it: it appears in the Paid To and Paid From lists on Payment Entries, it is the only kind of account the Bank Reconciliation Tool, Bank Clearance and the Bank Reconciliation Statement will work on, and Mode of Payment rows can map to it. Its balance is the book figure that bank reconciliation compares with the statement. The demo keeps its bank accounts under the group Bank Accounts - YFF, which together with Cash - YFF holds Rs 25,68,160. A bank account created without this type will still take Journal Entries but will never reconcile.

Book balance = Opening + Receipts posted - Payments posted; reconciled balance adds only entries with a clearance date

1. 01Go to Accounts Setup > Chart of Accounts and expand Current Assets > Cash and cash equivalents > Bank Accounts.
2. 02Open the company bank account, rename it after the real account, and confirm Account Type is Bank.
3. 03Go to Banking > Bank Account and link the record to this GL account.
4. 04Submit a Receive Payment Entry paid to this account; the entry below posts.
5. 05Open the account, click View Ledger to read the book balance, then reconcile it against the statement.

Set on each bank GL account; it then appears as Paid To or Paid From.

The company bank account under Bank Accounts - YFF is type Bank, so ACC-PAY-2026-00001 can deposit Rs 36,160 there.