Bank Transactions
One document lists the bank movements of a day or a statement. A line either clears a cheque or transfer that a Payment or a Collection already recorded, or it is a movement typed by hand, such as bank charges or a transfer from one account to another. Saving posts each line that needs a journal entry and marks each cleared payment line as cleared on that date.
What it is for
A company that pays and collects by cheque often does not want the bank account to move the day the cheque is written. It posts the Payment or the Collection to a clearing account first, and moves the money into the real bank account only when the bank clears it. This screen is that second step.
On the Payment Method of Payables or Receivables, a line can be ticked Bridging Posting and given an Offset Account. A payment or collection made through it posts to the clearing account. When you pick that payment or collection on a line here, the line comes with the clearing account on one side and the Offset Account on the other. Save posts the line and marks the payment line as cleared.
The rule people get wrong: Reverse undoes the journal entries, not the clearing. The payment line keeps its Cleared tick and date after a Reverse. It is offered again on a new Bank Transaction, and that is how you clear it again.
Every field in plain words
Header
| Field | What it means | What to put |
|---|---|---|
| Transaction | The document number | Given on Create |
| Posting Date | The date the journal entries are posted on, and the date the cleared lines are marked cleared | The bank statement date. Required |
| Transaction Journal | The journal the entries are posted in | Required. Pick it before Create: it is locked once the document is created. Only journals released for this screen and valid on the Posting Date are offered |
| Journal | The kind of journal | Comes with the Transaction Journal |
| Journal Indicator | The journal's indicator | Comes with the Transaction Journal |
| Posting Status | Park or Posted | Fills from the default posting status of the Transaction Journal. The journal entries carry the same status. A Posted document can no longer be edited or deleted; only a Posted one can be reversed |
| Currency | The currency of every line | Starts as the company's local currency. Required |
| Exchange Rate | Rate to the local currency | 1 for the local currency. For another currency it is looked up from the currency rates on the Posting Date when you change the currency |
| Deposite Slip Number | The bank's slip number | Optional, for reference. Printed on the Bank Transaction form |
| Reference no | Your reference | Copied to the journal entry as its reference |
| Notes | Free text | Copied to the journal entry as its header text |
| Debit Account (Offset Account) | A bank account to use in place of the payment method's own, for money coming in | Optional. Fill it before Create. When you pick a collection or other incoming payment on a line, the line's Debit Account becomes this account |
| Credit Account (Offset Account) | The same for money going out | Optional. Fill it before Create. A payment picked on a line takes this as its Credit Account |
| Reverse Date, Reverse Reason, Remarks | Filled when the document is reversed | Shown after a Reverse |
The Dimension tab holds the document's financial dimensions. They travel to the journal entries.
Lines
| Field | What it means | What to put |
|---|---|---|
| Line # | Line number | Automatic |
| Posting Date | The line's date | Takes the header Posting Date when the line is added |
| Bank Transaction Type | What kind of movement this is | Pick from Bank Transaction Type. Required on every line when Cash Bank Setting says so |
| Origin Number | The payment or collection this line clears | Optional. The lookup offers payment and collection lines that are Posted and not reversed, made through a payment method with Bridging Posting on that account, and not already on another Bank Transaction that is not reversed. With Allow Non-Bridge Bank Transaction ticked on Account Payable Setting or Account Receivable Setting, lines without Bridging Posting are offered too. Picking a line fills the accounts, amount, instrument and line text |
| Origin Process | Payment or Collection | Fills from the origin. The Origin Number opens that document |
| Status | A status for the line | Recorded on the line |
| Voucher No | The journal entry this line posted | Filled on Save |
| Debit Account | The account debited | For a collection: the Offset Account (the real bank), and you may change it. For a payment: the clearing account, locked. For a hand-typed line: any account |
| Name | Account name | Automatic |
| Transaction Amount | The amount | From the origin, and locked when the line has one. Typed for a hand-typed line. Totalled at the foot |
| Credit Account | The account credited | For a payment: the Offset Account, and you may change it. For a collection: the clearing account, locked. For a hand-typed line: any account |
| Name | Account name | Automatic |
| Payment Fee | A sub-grid for fees | Recorded only. Save posts nothing from it |
| Instrument No, Instrument Date | The cheque or transfer number and date | From the origin, or typed |
| Line Text | The line's narration | Goes to both journal lines |
How to configure it
- Make the transaction type compulsory. Tick Transaction Type mandatory in Bank Transaction on Cash Bank Setting. Save then refuses any line without a Bank Transaction Type, here and on Bank Reconciliation.
- Default values per company. The Default Parameters tab of Cash Bank Setting can give any field of this screen a starting value, or make it mandatory, greyed or hidden, for one company.
- Clear lines without a bridging account. Tick Allow Non-Bridge Bank Transaction on Account Payable Setting (for payments) or Account Receivable Setting (for collections). Such a line only marks the payment cleared: it posts nothing.
- The screen allows Create, Edit, Delete, Reverse and import.
Scenarios
- A distributor collects by post-dated cheque. The Collection posts to a cheques-in-hand account through a payment method with Bridging Posting. When the statement shows the cheque cleared, pick it on a line here. Save debits the bank, credits cheques in hand and marks the cheque cleared.
- A manufacturer pays suppliers by cheque. The Payment credits an issued-cheques account. On clearing, the line here debits issued cheques and credits the bank.
- Bank charges and profit. Add a line with no Origin Number, a Bank Transaction Type such as Bank charges, Debit the charges expense account and Credit the bank account.
- Moving money between two of your own accounts. One line with no origin: Debit the receiving bank, Credit the paying bank.
What it is connected to
- Payment Method of Payables and Receivables - Bridging Posting and Offset Account decide which payments are offered and which accounts they bring.
- Payment and Collection - the documents whose lines are cleared.
- Transaction Journal - the journal, its default posting status and its date range.
- Bank Transaction Type and Cash Bank Setting.
- Bank Reconciliation - the same kind of document for adjustment entries; it posts every line and marks nothing cleared.
- Lists and reports - the Bank Transaction list, the Bank Transaction form and the Cash & Bank board.
- What posts.
- Month-end close - bank movements are posted before the ledger period is closed.
If something looks wrong
- "Lines cannot be empty". The document has no line. Add at least one.
- "Line ID: ... - Debit Account cannot be empty" or "Credit Account cannot be empty". A line that posts has no account on one side. Lines without an origin, and lines cleared through a bridging account, need both.
- "Bank Transaction - Line ID: ... - Bank Transaction Type cannot be empty". Cash Bank Setting makes the type compulsory. Pick one on the line.
- "Line ID: ... is duplicated with Line ID: ...". The same payment or collection line is on two lines. Remove one.
- "... Posting Date ... cannot be less than Posting Date ... of ...". The payment or collection is dated after this document's Posting Date. A cheque cannot clear before it was recorded: move the Posting Date forward.
- "Reverse Date: ... cannot be less than Posting Date: ...". Give a reverse date on or after the Posting Date.
- A payment I expect is not in the Origin Number lookup. It is not Posted, it is reversed, it is already on another Bank Transaction, or its payment method line has no Bridging Posting and the setting does not allow non-bridge lines.
- The cheque still shows Cleared after I reversed the Bank Transaction. Reverse does not remove the Cleared tick. Clear it again on a new Bank Transaction; the payment is offered again.
- Edit and Delete are greyed. The document is Posted. Use Reverse.