Bank Transaction

Real transactions that took place in your bank account are represented by the Bank Transaction form in ERPNext. Instead of being manually entered, these are typically retrieved automatically (using integrations like Plaid or the Bank Reconciliation Tool).

In order to guarantee the accuracy of ERPNext records and the bank's actual records, this helps businesses with book reconciliation from bank statements.

1. Prerequisites

To make use of a bank transaction:

  • Create a Bank

  • Create a Bank Account

2. How Bank Transactions are Created

Usually, a Bank Transaction entry is not made by hand. It is produced automatically in two ways:

  1. Bank Reconciliation Tool: This tool is used when reconciling statements with ERPNext.

  2. Plaid Integration (or other APIs): Directly syncs transactions from your bank into ERPNext.

3. Important Bank Transaction Fields

3.1 Basic Information

  • Date: Date of transaction.

  • Status:

    • Pending (started but not finished)

    • Settled (successfully cleared)

    • Unreconciled (not yet reconciled with ERPNext entries)

    • Reconciled (successfully reconciled)

  • Bank Account: The bank account linked to this transaction.

Bank transaction form

3.2 Currency and Amounts

  • Debit: Take money out of the account.

  • Credit: Amount credited to the account.

  • Currency: The transaction's currency.

  • Description: Details from a bank statement or cheque.

4. Features

  • Automatic Linking: The system automatically connects bank transactions to invoices and payment entries.

  • Partial Allocation: Partial amounts may be matched.

  • Audit Trail: Tracks reconciled, pending, and cleared transactions for reporting purposes.

ERPNext's Bank Transactions feature gives businesses a clear picture of current banking activity. Businesses can minimise manual errors, eliminate mismatches, and guarantee transparent financial records by directly synchronising transactions and matching them with ERPNext entries for reconciliation.

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