Bank Reconciliation
ERPNext Bank Reconciliation helps you match up your company's financial records with your bank statement. This is to make sure that cleared, uncleared, and unmatched transactions are correctly identified. It is especially helpful when payments are made by cheque or when banks take a long time to process deposits and withdrawals.
1. What is a Bank Reconciliation Statement?
The Bank Reconciliation Report shows the difference between the balance in your ERPNext Chart of Accounts and the balance in the bank's statement.
If the balance is the same, it means that all of the transaction's Clearance Dates were updated correctly.
When there is a difference, it is usually because some bank entries are still waiting to be cleared.
2. How to Update Bank Transaction Dates
Go to Accounting > Banking and Payments > Bank Clearance
Pick your Bank Account.
Choose a From Date and a To Date.
(Optional) Choose entries that have been reconciled and POS transactions.
Click "Get Payment Entries."
As a result, change the Clearance Date for each transaction that applies.
To save, click on Update Clearance Date.
3. Reconciliation Methods in ERPNext
ERPNext has two tools:
3.1 Manual Bank Reconciliation Tool
Lets you change the clearance dates for Payment Entries, Sales Invoice Payments, or Journal Entries.
Useful for keeping track of transactions by hand.
3.2 Semi-automatic Bank Reconciliation Tool
This is a more advanced method that works in three steps:
(a) Import Bank Statement
Get your bank statement as a CSV or Excel file.
Go to Accounting > Bank Statement > Bank Statement Import.
Map the columns for Date, Debit, Credit, Currency, and Reference.
Click "Start Import" to make bank transactions automatically.
(b) Synchronising Bank Accounts (via API)
ERPNext works with companies like Plaid to get transactions straight from the bank.
The Bank Transaction doctype automatically shows transactions.
(c) Automatic Party Matching
Go to: Accounts Settings > Banking > Enable Automatic Party Matching.
You can also turn on "Fuzzy Matching," which is helpful when the name of the customer or supplier is a little different from what is in the system.
When you turn on ERPNext, it automatically assigns the Party in the Bank Transaction.
3.3 Reconciling Bank Statements
Click on Accounting > Bank Statement > Bank Reconciliation Tool.
Pick a company, a bank account, and start and end dates.
Compare the opening balance in ERPNext to the opening balance on the bank statement.
Enter the Closing Balance from the bank statement.
The system shows:
Transactions in ERPNext
Transactions on bank statements
Use to match:
Amount
Date
Reference (Cheque No. and Txn ID)
Any transactions that don't match up → either:
Match Against Voucher (link to an entry that already exists)
Make a voucher (new entry, like Payment, Journal, or Expense)
