Bank Account Summary — Complete User Guide — Two Accounts Web

Comprehensive guide for generating, analysing, and understanding the Bank Account Summary report — tracking all cash movements through a specific bank or cash account over a period

Table of Contents

1. What Is the Bank Account Summary?
   • Purpose and Structure
   • Report Sections
2. Enabling from the Customize Menu
3. Field-by-Field Guide
   • Report Header Fields
   • Report Columns (Periods)
4. Settings Configuration
   • Bank and Cash Accounts
   • Opening Balances for Bank Accounts
5. Creating a Bank Account Summary Report
6. How the Bank Account Summary Is Calculated
   • Inflows and Outflows
   • Net Increase/Decrease
   • LC (Letter of Credit) Activity
   • Opening Balance
   • Inter-Account Transfers
   • Journal Entries
   • Closing Balance
   • Foreign Currency Handling
7. Drill-Down Capabilities
8. Sample Data and Report Output
   • Sample Setup
   • Bank Account Summary Output
   • Verification of Calculation
9. Common Issues and Solutions
10. Accounting Regulation Compliance

1. What Is the Bank Account Summary?

The Bank Account Summary is a financial report that shows all movements through a specific bank or cash account over a period. It breaks down cash flows by type — inflows from customers, outflows to suppliers, LC payments, inter-account transfers, and journal entries — and reconciles from opening to closing balance.

Unlike the Cash Flow Statement (which covers all cash movements across the entire business), the Bank Account Summary focuses on a single bank or cash account, providing a detailed drill-down of every transaction affecting that account.

1.1 Purpose and Structure

The Bank Account Summary shows:

• Opening balance of the selected bank account at the period start
• Inflows — money received into the account (receipts, credits)
• Outflows — money paid from the account (payments, debits)
• LC activity — import LC payments and export LC receipts
• Inter-account transfers — transfers to/from other bank accounts
• Journal entries — manual adjustments affecting the account
• Closing balance of the selected bank account at the period end

Each section is broken down by the General Ledger account that is the contra-entry to the cash movement. For example, under Inflows you see not just totals, but which specific income or liability accounts were credited when cash was received.

1.2 Report Sections

2. Enabling from the Customize Menu

The Bank Account Summary report is available under:

• Reports → Cash and Cash Equivalents → Bank Account Summary

It requires the Bank and Cash Accounts tab to be enabled in Customize Menu:

1. Open Customize Menu
2. Find Bank and Cash Accounts toggle — ensure it is turned ON (default is ON)
3. Click Save

Without this tab enabled, the Bank Account Summary report will not appear in the Reports menu.

3. Field-by-Field Guide

3.1 Report Header Fields

Location: Reports → Cash and Cash Equivalents → Bank Account Summary → New Report

3.2 Report Columns (Periods)

Each report can contain one or more period columns for comparative analysis — for example, comparing Q1 and Q2 side by side.

The first period is the primary period. Additional periods appear as comparative columns side by side.

4. Settings Configuration

4.1 Bank and Cash Accounts

Location: Settings → Bank and Cash Accounts

Bank and Cash Accounts are the building blocks for the Bank Account Summary. Each account represents a physical bank account, cash drawer, mobile money wallet, or any other cash-equivalent held by the business.

4.2 Opening Balances for Bank Accounts

Location: Settings → Opening Balances → New Opening Balance Entry

To set an initial balance for a bank account (e.g., when migrating from another system):

5. Creating a Bank Account Summary Report

1. Go to Reports → Cash and Cash Equivalents → Bank Account Summary
2. Click New Report
3. Select the Bank Account from the dropdown
4. Optionally check Account Codes and Exclude Zero Balances
5. Add Periods:
   • Click Add to add a period column
   • Enter the From Date (period start)
   • Enter the To Date (period end)
   • Add additional periods for comparative analysis
6. Click Save
7. The report generates with Inflows, Outflows, and all supporting sections

6. How the Bank Account Summary Is Calculated

This section explains the calculation logic behind each part of the Bank Account Summary. Understanding these formulas helps you interpret the numbers and trace discrepancies.

6.1 Inflows and Outflows

Inflows and Outflows are calculated from the same transaction pool, split by sign:

Transaction Pool = All General Ledger transactions where:
    • The GL account is NOT a cash/bank account
    • The transaction type is Receipt OR Payment (excluding LC-linked payments)
    • The bank/cash account matches the selected account

Cash/bank GL accounts (like "Cash at Bank") are excluded from this pool because they are handled separately in the opening balance, closing balance, transfers, and LC sections.

Inflows (shown as positive):

Amount = Sum of (transaction amount × −1) for entries where:
    • The transaction amount is negative (credit entries — cash received)
    • Grouped by the contra General Ledger account

When a customer pays, the bank account is debited (positive), but the contra entry is credited (negative transaction amount). The system takes the negative amount and reverses the sign so inflows display as positive.

Outflows (shown as negative with "Less:" prefix):

Amount = Sum of (transaction amount × −1) for entries where:
    • The transaction amount is positive (debit entries — cash paid)
    • Grouped by the contra General Ledger account

When you pay a supplier, the bank account is credited (negative), but the contra entry is debited (positive transaction amount). The system takes the positive amount, reverses the sign, and displays in the Outflows group (which is always subtracted in totals).

6.2 Net Increase/Decrease

Net Increase/(Decrease) = Total Inflows − Total Outflows

This is automatically calculated by the report layout. The Outflows group is marked as "Less" (subtracted), so the total of both groups gives the net change.

6.3 LC (Letter of Credit) Activity

LC transactions are handled separately because they are excluded from the main Inflows/Outflows pool (which filters out LC-linked payments).

Import LC Payments:

Import LC Amount = Sum of account currency amount for Cash at Bank entries where:
    • The transaction is a Payment with at least one LC-linked line
    • The bank account matches
    • The date is within the period

Export LC Receipts:

Export LC Amount = Sum of account currency amount for Cash at Bank entries where:
    • The transaction is an Export LC Receipt
    • The bank account matches
    • The date is within the period

Both sections only appear if their amounts are non-zero.

6.4 Opening Balance

Opening Balance = Sum of account currency amount for Cash at Bank entries where:
    • The bank account matches the selected account
    • The date is BEFORE the period start date
      OR the entry is an Opening Balance Entry (regardless of date)

This captures all historical activity for the account before the report period, plus any opening balance entries that were created when the account was first set up (e.g., during migration).

6.5 Inter-Account Transfers

Transfers between bank accounts are included as a separate section because they involve cash-on-cash movements where both sides of the transaction are cash accounts:

Transfer Amount = Sum of account currency amount for Cash at Bank entries where:
    • The transaction is an Inter Account Transfer
    • The bank account matches
    • The date is within the period

This row only appears if there are any inter-account transfers affecting this account.

6.6 Journal Entries

Manual journal entries that affect the bank account are shown separately:

JE Amount = Sum of account currency amount for Cash at Bank entries where:
    • The transaction is a Journal Entry
    • The bank account matches
    • The date is within the period

This row only appears if there are journal entries affecting this account.

6.7 Closing Balance

The closing balance is automatically calculated as a total row:

Closing Balance = Opening Balance
    + Net Increase/(Decrease)
    + Import LC Payments
    + Export LC Receipts
    + Inter-Account Transfers
    + Journal Entries

The closing balance should equal the balance of the bank account on the Balance Sheet at the period end date.

6.8 Foreign Currency Handling

The report uses the account amount (amount in the bank account's own currency) for all calculations. If the bank account is in a foreign currency:

• All receipts and payments are stored in the bank account's currency after conversion using the exchange rate at the time of the transaction
• The opening and closing balances reflect the account's currency balance
• The summary report shows amounts in the account's currency, not in the base currency of the business

7. Drill-Down Capabilities

Each amount shown in the Inflows/Outflows sections is clickable. Clicking any amount opens a detailed transaction viewer showing the individual General Ledger transactions behind that figure.

Each drill-down view displays:

• Date — the transaction date
• Transaction — the document type and reference
• Bank Account — the specific bank account
• Description — transaction narrative
• Amount — the transaction amount (sign convention depends on the section clicked)

8. Sample Data and Report Output

8.1 Sample Setup

A business has one main bank account — "Main Business Account — DBBL". The following transactions occurred during January 2026:

Opening Balance (1 January 2026)

Transactions During January 2026

8.2 Bank Account Summary Output

Bank Account Summary — Main Business Account (DBBL)
For the period: 1-Jan-2026 to 31-Jan-2026
                                                         Amount (BDT)
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
INFLOWS
  Accounts Receivable                                    200,000  ¹
  Loan Payable                                           100,000  ²
                                                          300,000

OUTFLOWS
  Accounts Payable                                        80,000  ³
  Salary Expense                                          60,000  ⁴
  Rent Expense                                            15,000  ⁵
                                                          155,000

NET INCREASE/(DECREASE) IN CASH HELD                     145,000

IMPORT LC PAYMENTS                                       (50,000)  ⁶
EXPORT LC RECEIPTS                                             0

CASH AT THE BEGINNING OF THE PERIOD                      100,000  ⁷

INTER-ACCOUNT TRANSFERS                                  (30,000)  ⁸
JOURNAL ENTRIES                                           (2,000)  ⁹

CASH AT THE END OF THE PERIOD                            163,000  ¹⁰
                                                          ═══════

Notes:

1. Accounts Receivable 200,000: 150,000 (receipt 5-Jan) + 50,000 (receipt 30-Jan) = 200,000
2. Loan Payable 100,000: Loan proceeds receipt on 18-Jan
3. Accounts Payable 80,000: Supplier payment on 10-Jan
4. Salary Expense 60,000: Salary payment on 15-Jan
5. Rent Expense 15,000: Rent payment on 20-Jan
6. Import LC Payments (50,000): LC payment on 25-Jan — shown separately because it is LC-linked
7. Opening Balance 100,000: Pre-existing balance before January
8. Inter-Account Transfers (30,000): Transfer to payroll account on 22-Jan
9. Journal Entries (2,000): Bank charge correction on 28-Jan
10. Closing Balance 163,000: 100,000 + 145,000 − 50,000 + 0 − 30,000 − 2,000 = 163,000

8.3 Verification of Calculation

INFLOWS:
  Accounts Receivable:    150,000 + 50,000 = 200,000 (credits to AR = increases in bank)
  Loan Payable:           100,000
  Total Inflows:          300,000 ✓

OUTFLOWS:
  Accounts Payable:        80,000 (debits to AP = decreases in bank)
  Salary Expense:          60,000
  Rent Expense:            15,000
  Total Outflows:         155,000 ✓

NET INCREASE/(DECREASE):  300,000 − 155,000 = 145,000 ✓

OTHER MOVEMENTS:
  Opening Balance:                            100,000
  Net Increase/(Decrease):                    145,000
  Import LC Payments:                         (50,000)
  Export LC Receipts:                               0
  Inter-Account Transfers:                    (30,000)
  Journal Entries:                             (2,000)
  Closing Balance:                            163,000 ✓

BANK RECONCILIATION CHECK:
  Opening Cash:            100,000
  + Receipts:              150,000 + 100,000 + 50,000 = 300,000
  − Payments:               80,000 + 60,000 + 15,000 = 155,000
  − LC Payment:             50,000
  − Transfer Out:           30,000
  − Journal Entry:           2,000
  = Closing Cash:          163,000 ✓

  Balance matches the report ✓

DR = CR VERIFICATION:
  Total credits to bank (inflows):  150,000 + 100,000 + 50,000 = 300,000
  Total debits to bank (outflows):  80,000 + 60,000 + 15,000 + 50,000 + 30,000 + 2,000 = 237,000
  Net change to bank:               300,000 − 237,000 = 63,000 (increase)
  Opening:                          100,000
  Closing:                          163,000 ✓

9. Common Issues and Solutions

9.1 Closing Balance Does Not Match Bank Statement

Cause: Transactions recorded in the system but not yet cleared at the bank, or bank charges/fees not yet entered, or uncleared cheques.

Solution: Perform a Bank Reconciliation for the account. The Bank Account Summary shows the system balance. The bank statement shows the bank balance. The difference should be explained by items in transit (unpresented cheques, deposits in transit) and unrecorded bank charges.

9.2 Transactions Are Missing from the Report

Cause: The transaction may not be assigned to the correct bank account, or the date falls outside the report period.

Solution: Verify that the transaction has the correct bank account selected. Check the transaction date. If the transaction involves an LC, it appears under "Import LC Payments" rather than in Inflows/Outflows.

9.3 Amounts Do Not Match the General Ledger

Cause: The report groups by contra account. The total inflows/outflows should match the GL. Individual line amounts may differ if multiple transactions affect the same bank account through different GL accounts.

Solution: Use the drill-down on any amount to see the individual transactions. The drill-down shows the exact GL transactions that make up that amount.

9.4 LC Payments Appear as Regular Outflows Instead of Separate Section

Cause: The LC Payment was not properly linked to a Letter of Credit. The report only separates LC payments when the payment line has a Letter of Credit reference.

Solution: Ensure that LC payments are created through the LC module rather than as standalone payments. The LC module ensures the payment lines are correctly linked to the Letter of Credit.

9.5 Inter-Account Transfer Amounts Look Incorrect

Cause: The Inter-Account Transfer may have been recorded as a regular receipt and payment instead of through the Inter Account Transfer module.

Solution: Use the Inter Account Transfer module for all transfers between bank accounts. This ensures the system correctly classifies them as transfers rather than inflows/outflows.

9.6 Opening Balance Does Not Match Prior Period Closing

Cause: New Opening Balance Entries were added after the prior period, or transactions were backdated to before the period start.

Solution: Drill into the opening balance to see the underlying transactions. Check for any Opening Balance Entries or backdated journal entries that may have adjusted the opening balance after the prior period close.

9.7 Report Shows No Data for the Selected Period

Cause: No transactions exist for the selected bank account within the date range, or the bank account has not been assigned to any transactions.

Solution: Verify that the bank account has transactions. Create a receipt or payment assigned to this bank account and regenerate the report. Check that the From and To dates are correct.

10. Accounting Regulation Compliance

10.1 IAS 7 — Statement of Cash Flows

10.2 IAS 1 — Presentation of Financial Statements

10.3 IFRS 9 — Financial Instruments

10.4 IAS 21 — Foreign Exchange

10.5 DR = CR Verification

Sample Data Verification:

  Opening Balance:                    100,000

  Transactions affecting the bank account:
    Receipt (5-Jan):     Dr Bank 150,000 / Cr AR 150,000
    Payment (10-Jan):    Dr AP 80,000 / Cr Bank 80,000
    Payment (15-Jan):    Dr Salary 60,000 / Cr Bank 60,000
    Receipt (18-Jan):    Dr Bank 100,000 / Cr Loan 100,000
    Payment (20-Jan):    Dr Rent 15,000 / Cr Bank 15,000
    Transfer (22-Jan):   Dr Transfer 30,000 / Cr Bank 30,000
    LC Payment (25-Jan): Dr LC Payable 50,000 / Cr Bank 50,000
    JE (28-Jan):         Dr Bank Charge 2,000 / Cr Bank 2,000
    Receipt (30-Jan):    Dr Bank 50,000 / Cr AR 50,000

  All debits to bank:   150,000 + 100,000 + 50,000 = 300,000
  All credits from bank: 80,000 + 60,000 + 15,000 + 30,000 + 50,000 + 2,000 = 237,000
  Net increase:          63,000
  Closing balance:       100,000 + 63,000 = 163,000 ✓

  Report closing balance: 163,000 ✓

  Each transaction DR = CR ✓ (verified individually)
  Bank balance per GL = Bank balance per report = 163,000 ✓

End of Bank Account Summary Guide