Bank and Cash Accounts

July 05, 2026 19 views admin
Bank or Cash Account Receipt Payment Inter-Account Transfer Bank Reconciliation

Bank and Cash Accounts — Complete User Guide — Two Accounts Web

Comprehensive guide covering Bank and Cash Account setup, opening balances, settings configuration, transaction processing, and financial report impact — with sample data and accounting regulation validation.

Table of Contents

  1. System Overview
  2. Bank or Cash Account Setup
  3. Opening Balances
  4. Transaction Types
  5. Balance Calculation
  6. Bank Account Summary Report
  7. Import Bank Statement
  8. Sample Data
  9. Edge Cases
  10. Accounting Regulation Validation

1. System Overview

The Bank and Cash Accounts module manages all cash and bank accounts within the system. It serves as the central hub for recording cash inflows (receipts), outflows (payments), transfers between accounts, and bank reconciliations.

1.1 Key Concepts

Concept Description
Bank or Cash Account A financial account representing money held at a bank or as physical cash. Each account has a currency, optional division, control account, and credit limit.
Opening Balance The initial cash balance of the account at the start of the financial year. Set up through the Opening Balance Entry in Settings.
Receipt Money received into the account (cash inflow). Can be from customers, refunds, or other sources.
Payment Money paid out of the account (cash outflow). Can be to suppliers, employees, or other payees.
Inter-Account Transfer Movement of money between two bank/cash accounts within the same business.
Bank Reconciliation The process of matching the system's cash balance with the bank statement balance.
Cleared vs Pending Transactions marked as Cleared have been confirmed by the bank; Pending transactions are recorded but not yet cleared.
Actual Balance Cleared Balance + Pending Deposits + Pending Withdrawals.

1.2 Enabling via Customize Menu

The Bank and Cash Accounts tab is enabled by default. If it is not visible in your navigation, go to Customize Menu (click the Customize button from navigation bar) and ensure Bank and Cash Accounts is toggled on. It serves as a prerequisite for the following sub-tabs:

Sub-Tab Default Purpose
Bank and Cash Accounts On Lists all accounts with balances
Receipts On Record money received
Payments On Record money paid out
Inter-Account Transfers Off Move money between accounts
Bank Reconciliations On Reconcile with bank statements

2. Bank or Cash Account Setup

2.1 Navigation

Bank and Cash Accounts → New Bank or Cash Account

2.2 All Fields

Field Required? Description
Name ✅ Yes Account name, e.g. "Cash in Bank", "Petty Cash"
Code ❌ No Optional short code, e.g. "CIT-001"
Currency ❌ No Foreign currency if the account is held in a non-base currency. Leave empty for base currency.
Division ❌ No Operational division for reporting
Control Account ❌ No Custom control account for Balance Sheet classification. Defaults to "Cash and Cash Equivalents" if not set.
Has International Bank Account Number ❌ No Check to show the IBAN field for international transfers
IBAN ❌ No International Bank Account Number (shown when checked above)
Can Have Pending Transactions ❌ No Enable if the account can have uncleared transactions (typical for bank accounts with processing delays)
Has Credit Limit ❌ No Enable to set an overdraft or credit limit on the account
Credit Limit ❌ No The maximum overdraft amount allowed (shown when checked above)
Inactive ❌ No Mark as inactive to hide from dropdowns and reports

2.3 GL Accounts Used

Account Type Purpose
Cash and Cash Equivalents (default) Balance Sheet (Asset) Default control account for all bank/cash accounts
Custom Control Account (optional) Balance Sheet (Asset) Alternative control account for specific bank account reporting

2.4 Setting Up the Starting Balance

The Bank or Cash Account form does NOT have a direct "Starting Balance" field. Instead, the subtitle "=== Starting Balance ===" provides guidance:

  • For a positive balance: Create a Receipt for the opening amount
  • For a negative balance (overdraft): Create a Payment for the opening amount
  • For bulk adjustments: Use a Journal Entry

Alternatively, use the Opening Balance Entry in Settings (see Section 3).

2.5 List View Columns

Column Description
Code Short code from the account setup
Name Account name
Control Account The Balance Sheet account this account reports under
Division Division assigned to the account
Uncategorized Receipts Count of receipts awaiting category assignment (clickable drill-down)
Uncategorized Payments Count of payments awaiting category assignment (clickable drill-down)
Cleared Balance Sum of all transactions marked as cleared (clickable drill-down)
Pending Deposits Sum of uncleared positive amounts (receipts/transfers in) (clickable drill-down)
Pending Withdrawals Sum of uncleared negative amounts (payments/transfers out) (clickable drill-down)
Actual Balance Cleared + Pending Deposits + Pending Withdrawals (clickable drill-down)
Available Credit Remaining credit limit (if any)
Last Bank Reconciliation Date of most recent reconciliation (clickable drill-down)

3. Opening Balances

3.1 Navigation

Settings → Opening Balances → New Opening Balance Entry

3.2 Overview

Opening Balance Entries are used to set the initial balances of accounts when starting to use the system mid-year or migrating from another system. Per the system documentation:

  • Balance Sheet accounts: Create a Dr/Cr entry to the target account AND a reverse entry to Retained Earnings (balancing)
  • P&L accounts: Create a single entry only (P&L accounts cannot carry forward opening balances per IAS 1)

3.3 Opening Balance Entry Fields

Field Required? Description
Account ✅ Yes The Balance Sheet account to set the opening balance for
Bank Account ❌ No Specific bank/cash account (shown when Account = Cash at Bank)
Customer ❌ No Specific customer for AR opening balance
Supplier ❌ No Specific supplier for AP opening balance
Employee ❌ No Specific employee for clearing accounts
Capital Account ❌ No Specific capital account
Special Account ❌ No Specific special account
Investment ❌ No Specific investment
Intangible Asset ❌ No Specific intangible asset for amortization accounts
Expense Claims Payer ❌ No Specific payer for expense claims
Financial Year Start ✅ Yes Date from which the opening balance applies
Debit or Credit ✅ Yes Whether the opening balance is a debit or credit
Amount ✅ Yes The opening balance amount in base currency
Description ❌ No Free-text description
Entry Date ✅ Yes Date of the opening balance entry
Division ❌ No Division for the entry
Reference ❌ No Optional reference number
Currency ❌ No Foreign currency (if the account is in FC)
Amount in Currency ❌ No Amount in foreign currency
Exchange Rate ❌ No Exchange rate for FC conversion

3.4 GL Impact of Opening Balances

Opening Balance Entries create synthetic GL transactions (with no source document and opening balance entry flag = true). These are included in all balance calculations throughout the system.

For a bank account with a debit balance of BDT 10,000:

Journal Entry created:

Dr Cash and Cash Equivalents (Bank Account Name) 10,000.00
 Cr Retained Earnings 10,000.00

DR = CR ✅

The synthetic GL transaction has:

  • opening balance entry flag = true — identifies it as an opening balance
  • no source document — no source document (not a Receipt, Payment, etc.)
  • General Ledger Account > cash account type = true — correctly classified for reporting
  • BankAccount — linked to the specific bank account

3.5 Viewing Opening Balance Journal

The Opening Balance Entry view includes a collapsible "Transaction Journal" section showing the Dr/Cr entries with FC and base currency columns (if applicable).

4. Transaction Types

4.1 Overview of Sources

The balance of each bank account is built from six transaction sources:

# Source Direction Description
1 Receipts Cash In (+) Money received from customers, refunds, etc.
2 Payments Cash Out (−) Money paid to suppliers, employees, etc.
3 Inter-Account Transfers In/Out (±) Money transferred between own accounts
4 Journal Entries In/Out (±) Manual adjustments affecting cash
5 Export LC Receipts Cash In (+) Funds received from export LC bank payments
6 Opening Balance Entries In/Out (±) Initial balances set at system start

4.2 How Each Transaction Affects Cash

Receipt:

Dr Cash (Bank Account) Amount received
 Cr Accounts Receivable / Other Amount received

Payment:

Dr Accounts Payable / Other Amount paid
 Cr Cash (Bank Account) Amount paid

Inter-Account Transfer (from Account A to Account B):

Dr Cash (Account B) Amount
 Cr Cash (Account A) Amount

Export LC Receipt:

Dr Cash (Bank Account) Amount received (net of fees)
 Cr Export LC Receivable Amount received
 Dr Export LC AR Clearing Full LC Amount
 Cr Accounts Receivable (SI) Full LC Amount

5. Balance Calculation

5.1 Balance Formula

The system calculates bank account balances using the following approach:

Cleared Balance = Sum of amount in the account's currency where cleared date is set
Pending Deposits = Sum of amount in the account's currency where cleared date is NULL AND amount in the account's currency > 0
Pending Withdrawals = Sum of amount in the account's currency where cleared date is NULL AND amount in the account's currency < 0
Actual Balance = Cleared Balance + Pending Deposits + Pending Withdrawals
Available Credit = Credit Limit + (Actual Balance if negative)

5.2 Transaction Sources for Balance

The balance calculation aggregates transactions from ALL six sources listed in Section 4.1. The system collects GL transactions from:

  1. Receipts — their cash-side GL entries are aggregated
  2. Payments — their cash-side GL entries are aggregated
  3. Inter-Account Transfers — their cash-side GL entries are aggregated
  4. Journal Entries — their cash-side GL entries are aggregated
  5. Export LC Receipts — their cash-side GL entries are aggregated
  6. Synthetic GL entries from OpeningBalanceEntry where Transaction is null

5.3 amount in the account's currency Field

The balance uses amount in the account's currency (not transaction amount or base currency amount). For bank accounts in base currency:

amount in the account's currency = base currency amount = transaction amount

For bank accounts with a foreign currency, amount in the account's currency reflects the account's own currency, while base currency amount is in the base currency.

5.4 Credit Limit

When an account has a credit limit set:

Available Credit = Credit Limit + Actual Balance (if negative)

Example: Account with BDT 50,000 credit limit and BDT −10,000 actual balance:

Available Credit = 50,000 + (−10,000) = 40,000

6. Bank Account Summary Report

6.1 Navigation

Reports → Bank Account Summary → New Report

6.2 Report Input

Field Description
Bank Account Select the specific bank/cash account
Periods One or more date ranges (From Date, To Date) for comparative columns

6.3 Report Structure

Row Description Calculation
Inflows Cash received during the period Sum of negative transaction amount × −1 for Receipts and non-LC Payments (contra accounts, not Cash side)
Outflows Cash paid during the period Sum of positive transaction amount × −1 for Receipts and non-LC Payments (contra accounts)
Net Increase / Decrease Total row Inflows − Outflows
Import LC Payments LC-related payments (shown separately) Sum of amount in the account's currency for LC-linked Payment Cash entries
Export LC Receipts Export LC receipts (shown separately) Sum of amount in the account's currency for ExportLCReceipt Cash entries
Cash at Beginning Opening balance Sum of amount in the account's currency before period (includes opening balance entries)
Journal Entries JE adjustments to cash Sum of amount in the account's currency for JournalEntry Cash entries
Inter-Account Transfers Transfers in/out Sum of amount in the account's currency for InterAccountTransfer Cash entries
Cash at End Total row Beginning + Inflows − Outflows + LC items + Transfers + JEs

6.4 Amount Fields Used

Section Field Why
Inflows / Outflows transaction amount Contra accounts — amount in original transaction currency
Export LC Receipts amount in the account's currency Cash side — uses the account's own currency
Import LC Payments amount in the account's currency Cash side — uses the account's own currency
Cash at Beginning amount in the account's currency Cash side — includes opening balance entries
Journal Entries amount in the account's currency Cash side — direct cash adjustments
Inter-Account Transfers amount in the account's currency Cash side — transfers between accounts

6.5 Drill-Down Navigation

Each cell in the report is clickable, opening the Bank Account Transactions drill-down viewer showing the individual GL transactions that make up that cell's value.

7. Import Bank Statement

7.1 Overview

The Import Bank Statement feature allows you to upload bank transaction files directly into the system. The system reads the file, matches transactions already recorded, and creates Receipts (for deposits) or Payments (for withdrawals) for any new transactions.

This is useful for:

  • Loading historical bank transactions when first starting to use the system
  • Automatically creating Receipts and Payments from bank statement downloads
  • Reducing manual data entry by importing electronic bank files

7.2 Navigation

Bank and Cash Accounts → Click "Import Bank Statement" button (bottom-right corner)

7.3 Supported File Formats

The system supports the following bank statement file formats, listed in order of reliability:

Format Extension Reliability Notes
QIF .qif High Quicken Interchange Format — widely supported by banks
OFX .ofx High Open Financial Exchange — standard banking format
QFX .qfx High Quicken OFX variant
QBO .qbo High QuickBooks Online format
STA .sta High SWIFT MT940 statement format
SWI .swi High SWIFT MT940 variant
940 .940 High SWIFT MT940 format
CAMT.053 .camt053 High ISO 20022 bank statement XML
XML .xml Medium Generic XML — structure varies by bank
CSV .csv Medium Comma-separated values — column names must match expected headers
IIF .iif Low Intuit Interchange Format — older QuickBooks format
Note: PDF format is NOT supported. PDF is designed for human reading, not machine processing. Request electronic file formats (QIF, OFX, CSV, etc.) from your bank instead.

7.4 CSV Format Requirements

CSV files must contain specific column headers. The system recognises a wide range of common column names:

Column Required? Recognised Headers Impact When Set Impact When Missing
Date ✅ Strongly Recommended Date, DATE, Transaction Date, TransactionDate, Trade Date, Payment Date Sets the document date. Determines the accounting period the transaction posts to. Rows without a parseable date are silently skipped — the transaction is not imported.
Amount ✅ Strongly Recommended Amount, AMOUNT, Credit, Credits, Credit Amount, Net, Net Amount, Total, Value, Deposited Positive amount → creates a Receipt (Dr Cash / Cr Suspense). Negative amount → creates a Payment (Dr Suspense / Cr Cash). If Amount is missing and no Debit column exists, the transaction is skipped (amount = 0). If Debit column exists, it is used instead.
Debit ❌ Optional Debit, Debits, Debit Amount, Out amount When Amount column is missing, Debit values are treated as negative amounts (outflows). Creates a Payment (Dr Suspense / Cr Cash). If missing, only the Amount column is used. If both exist, Amount takes priority.
Description ❌ Optional Description, DESCRIPTION, Extended Text, Comment, Details, Transaction Description Becomes the document description. Visible in the GL transaction detail. Document is created with a blank description.
Reference ❌ Optional Reference, #, Bank Reference Number Sets the document reference number. Useful for audit trail and matching. Auto-generated reference number is used.
Payee ❌ Optional Payee, Name Stored as the contact name on the document. No contact is linked to the document.
Quantity ❌ Optional units, Quantity Sets the quantity on the line item. Rarely used in bank imports. Quantity defaults to null.

Sample CSV format:

Date,Amount,Description,Reference,Payee
01/01/2026,5000.00,Sales deposit,RCP-001,Customer ABC
05/01/2026,-1200.00,Supplier payment,PMT-001,Supplier XYZ
10/01/2026,3500.00,Client invoice payment,RCP-002,Client DEF
15/01/2026,-800.00,Utility bill,PMT-002,Utility Co

CSV with Debit/Credit columns (separate columns):

Date,Description,Credit,Debit
01/01/2026,Sales deposit,5000.00,
05/01/2026,Supplier payment,,1200.00
10/01/2026,Client invoice,3500.00,
15/01/2026,Utility bill,,800.00
Note: Date format is automatically detected. The system attempts to determine whether dates are in US format (MM/DD/YYYY), UK format (DD/MM/YYYY), or ISO format (YYYY/MM/DD) by analysing all dates in the file.

7.5 User Workflow

Step 1 — Navigate to Import:

Bank and Cash Accounts → Click "Import Bank Statement" button
(bottom-right corner of the bank accounts list)

Step 2 — Select File and Bank Account:

1. Click "Choose File" and select your bank statement file
   (supported: .qif, .ofx, .qfx, .qbo, .sta, .swi, .940, .camt053, .xml, .csv, .iif)

2. Select the bank account to import into from the dropdown

3. Click "Next"

Step 3 — Review Import Summary:

The system displays a summary showing:

  Description                    Value
  ─────────────────────────────────────────────────────
  Bank Account                   Operating Account
  Closing Balance Before Import  521,500.00
  Number of Transactions in File 5
  Number Already Imported        0
  Number to Import               5
  Closing Balance After Import   536,700.00

  [Import] button

The summary above uses the closing balance from the Section 7.8 import scenario (521,500.00). The 5 new transactions total 15,200.00 (15,000 − 4,500 + 8,200 − 3,200 + 6,000), resulting in a closing balance of 536,700.00 after import.

Step 4 — Import:

Click "Import" to create Receipts (positive amounts) and 
Payments (negative amounts) for each bank transaction.

After import, you are returned to the Bank and Cash Accounts 
list showing the updated balance.

7.6 Duplicate Detection

Before importing, the system checks for duplicate transactions that were already imported in a previous statement. The matching logic works in two passes:

Pass 1 — Exact match: A transaction is considered already imported if a matching GL transaction exists with the same:

  • Clear date (the bank statement date)
  • Amount
  • Description

Pass 2 — Date + Amount match: If no exact match is found, the system checks if a GL transaction exists with the same:

  • Clear date
  • Amount

If a match is found in either pass, the bank statement line is excluded from the import. Only unmatched lines become new Receipts or Payments.

7.7 What Gets Created

Bank Statement Line Document Created Amount on Document GL Impact (Uncategorised)
Positive amount (deposit) Receipt +Amount (money received) Dr Cash (Bank Account)
Cr Suspense Account
Negative amount (withdrawal) Payment |Amount| (money paid out, stored as positive on Payment) Dr Suspense Account
Cr Cash (Bank Account)

Each created document is marked as Cleared = On The Same Date, meaning the transaction is automatically cleared against the bank statement.

The documents are uncategorised — they are created with a single line and no assigned GL account. The amount posts to a suspense account instead of the correct income or expense account. This means:

  • The bank account balance is updated correctly
  • But the Income Statement (Profit & Loss) does not show the correct income or expense yet
  • The Uncategorised Receipts and Uncategorised Payments columns in the bank accounts list show the count of documents awaiting categorisation

To categorise imported transactions, use either:

  • Bank Rules — Automatically assign GL accounts based on description, amount, or payee. Set up in Settings → Bank Rules. Rules apply to new imports automatically.
  • Manual categorisation — Click the Uncategorised Receipts or Uncategorised Payments count in the bank accounts list. Then assign each transaction to the correct GL account.

7.8 Sample Import Scenario

Bank Statement File (CSV) 
Date,Amount,Description,Reference,Payee
01/06/2026,15000.00,Client payment for INV-001,RCP-001,Customer ABC
05/06/2026,-4500.00,Rent payment,PMT-001,Landlord Ltd
10/06/2026,8200.00,Sales receipts,RCP-002,Client DEF
20/06/2026,-3200.00,Supplier invoice payment,PMT-002,Supplier XYZ
28/06/2026,6000.00,Service fee received,RCP-003,Customer GHI

Before Import: Bank account balance = 500,000.00

After Import — Documents Created and Their Impact:

Date Document Type Amount Description GL Impact (Uncategorised) Reference Payee
01/06 Receipt 15,000.00 Client payment for INV-001 Dr Cash 15,000 / Cr Suspense 15,000 RCP-001 Customer ABC
05/06 Payment 4,500.00 Rent payment Dr Suspense 4,500 / Cr Cash 4,500 PMT-001 Landlord Ltd
10/06 Receipt 8,200.00 Sales receipts Dr Cash 8,200 / Cr Suspense 8,200 RCP-002 Client DEF
20/06 Payment 3,200.00 Supplier invoice payment Dr Suspense 3,200 / Cr Cash 3,200 PMT-002 Supplier XYZ
28/06 Receipt 6,000.00 Service fee received Dr Cash 6,000 / Cr Suspense 6,000 RCP-003 Customer GHI

Balance After Import: 500,000 + 15,000 − 4,500 + 8,200 − 3,200 + 6,000 = 521,500.00

After Categorisation (via Bank Rules or manual):

Date Categorised As Corrected GL Impact
01/06 Accounts Receivable — Customer ABC Dr Cash 15,000 / Cr Accounts Receivable 15,000
05/06 Rent Expense Dr Rent Expense 4,500 / Cr Cash 4,500
10/06 Sales Revenue Dr Cash 8,200 / Cr Sales Revenue 8,200
20/06 Accounts Payable — Supplier XYZ Dr Accounts Payable 3,200 / Cr Cash 3,200
28/06 Service Revenue Dr Cash 6,000 / Cr Service Revenue 6,000

The bank account balance remains 521,500.00 — categorisation does not change cash. It only reassigns the contra entry from Suspense to the correct GL account.

Note: Uncategorised documents appear as clickable counts in the Bank and Cash Accounts list view under the "Uncategorised Receipts" and "Uncategorised Payments" columns. The count decreases as each transaction is categorised.

7.9 Edge Cases

Scenario What Happens
File format not supported Error message: "File format not supported. Only .qif, .ofx, .qfx, .sta, .xml or .camt053 formats can be accepted."
Empty file (no transactions) Error message: "File you are trying to upload appears to be empty."
Ambiguous date format Error message: "File you are trying to upload has ambiguous date format."
CSV with missing Date column Rows without a parseable date are skipped
Amount is zero Transaction is skipped — no Receipt or Payment created
All transactions already imported Summary shows "Number to Import = 0". Import button still works but no documents are created.
Transaction dates before the lock date Transactions dated on or before the lock date are excluded from import
Foreign currency bank account The system looks up the latest exchange rate for the bank account's currency and applies it to the imported receipts and payments
No exchange rate found for foreign currency Exchange rate defaults to 1.0
Negative amount in CSV (withdrawal) A Payment document is created with the absolute value as the amount
Separate Debit and Credit columns The system looks for "Debit" and "Credit" columns; if found, positive amounts in the Debit column are treated as negative (outflows)

8. Sample Data

8.1 Scenario

Bank Account Operating Account — Cash at Bank
Currency BDT (base currency, no foreign currency set)
Opening Balance BDT 500,000.00 (set via Opening Balance Entry on 1 Jan 2026)
Period 1 Jan 2026 to 31 Mar 2026

8.2 Transactions in the Period

Date Transaction Type Against Amount Effect on Cash
1 Jan Opening Balance Entry — +500,000.00 Opening
15 Jan Receipt Customer ABC — Invoice INV-001 +100,000.00 Inflow (AR collected)
10 Feb Payment Supplier XYZ — Bill BIL-001 −75,000.00 Outflow (AP paid)
1 Mar Export LC Receipt ELC-2026-001 — Global Trade Corp +250,000.00 Export LC Receipt
15 Mar Journal Entry Correction adjustment −5,000.00 JE (outflow)

8.3 GL Entries for the Bank Account

Cash & Cash Equivalents (Operating Account) — amounts in BDT:

1 Jan  Opening Balance Entry              +500,000.00  Dr
15 Jan Receipt (Customer ABC)              +100,000.00  Dr
10 Feb Payment (Supplier XYZ)               −75,000.00  Cr
 1 Mar Export LC Receipt (ELC-2026-001)    +250,000.00  Dr
15 Mar Journal Entry (correction)            −5,000.00  Cr
                                            ──────────
Actual / Cleared Balance =                 770,000.00

8.4 Balance Calculation — List View

Source Amount Running Balance
Opening Balance Entry +500,000.00 500,000.00
Receipt (AR collection — Customer ABC) +100,000.00 600,000.00
Payment (AP payment — Supplier XYZ) −75,000.00 525,000.00
Export LC Receipt (ELC-2026-001) +250,000.00 775,000.00
Journal Entry (correction) −5,000.00 770,000.00

8.5 Bank Account Summary Report Output

Bank Account Summary — Operating Account
Period: 1/1/2026 to 3/31/2026

Cash at the Beginning of the Period            500,000.00

Inflows:
  Accounts Receivable                           100,000.00

Outflows:
  Accounts Payable                              -75,000.00

Net Increase / Decrease in Cash Held             25,000.00

Export LC Receipts                              250,000.00
Journal Entries                                  -5,000.00

Cash at the End of the Period                   770,000.00

8.6 Verification of Closing Balance

List View — Operating Account:
  Actual Balance:                             770,000.00

Report Calculation:
  Cash at Beginning (Opening Entry)            500,000.00
  + Inflows (AR collected)                     100,000.00
  − Outflows (AP paid)                         -75,000.00
  + Export LC Receipts                         250,000.00
  + Journal Entries                             -5,000.00
                                                ──────────
  Cash at End                                 770,000.00

Both match: ✅

Cross-check — all transactions:
  500,000 (opening) + 100,000 (receipt) − 75,000 (payment)
  + 250,000 (export LC) − 5,000 (JE) = 770,000 ✅

How each report row is calculated:

Report Row Amount Source
Cash at Beginning 500,000.00 Opening Balance Entry for this account (flagged as opening entry)
Inflows — Accounts Receivable 100,000.00 Receipt from Customer ABC — money collected against their invoice. The contra side (AR) has a negative transaction amount, multiplied by −1 shows as positive inflow.
Outflows — Accounts Payable (75,000.00) Payment to Supplier XYZ — money paid against their bill. The contra side (AP) has a positive transaction amount, multiplied by −1 shows as negative outflow.
Export LC Receipts 250,000.00 Funds received from the bank for Export LC ELC-2026-001. This is reported separately from main inflows because it is an LC-related cash receipt.
Journal Entries (5,000.00) A correction Journal Entry that reduced cash. All Journal Entries affecting cash on this account are summed in this row.
Cash at End 770,000.00 Matches the balance in the Bank and Cash Accounts list view.

8.7 Balance Sheet Impact

Balance Sheet (Extract) — As at 31 Mar 2026:

Assets:
  Cash and Cash Equivalents (Operating Account)    770,000.00

Trial Balance (Extract):
Account                                          Debit        Credit
Cash and Cash Equivalents                      770,000.00

8.8 Bank and Cash Accounts List View

The list view shows all bank accounts with their current balances. The Operating Account's cleared and actual balances match because all transactions are marked as cleared (no pending deposits or withdrawals):

Account Cleared Balance Actual Balance
Operating Account 770,000.00 770,000.00
Petty Cash 35,000.00 35,000.00
Salary Account 150,000.00 150,000.00

The Cleared Balance (770,000.00) matches the Cash at End in the Bank Account Summary report. The Actual Balance equals the Cleared Balance when there are no pending deposits or withdrawals.

9. Edge Cases

Scenario What Happens
No bank account selected in report Report returns empty — no data shown
Bank account not found (deleted) Report returns empty
No transactions in period Inflows and Outflows show zero; only Beginning and Ending balances are shown
Negative opening balance (overdraft) Shown as negative in the Beginning Balance row; created via Payment or Opening Balance with a Credit entry
Foreign currency account Amounts in the account's own currency differ from base currency amounts; the report separately tracks inflows/outflows using transaction amounts while cash balances use account amounts
LC-linked payment Excluded from main Inflows and Outflows; shown separately as an Import LC Payment row
Export LC receipt on a non-LC bank account Shown in the Export LC Receipts row if the bank account matches the receipt's bank account
Opening balance entry exists Included in the Cash at Beginning calculation (identified by the opening balance entry flag)
Inter-account transfer in period Shown as a separate row; both the incoming (Dr) and outgoing (Cr) sides are included
Journal Entry with no cash impact Excluded from the report because it does not affect a cash account
Multiple periods selected Each column shows the calculation for that period independently, enabling period-over-period comparison
Cleared vs pending filter Balances in the list view distinguish cleared and pending transactions; the report shows all transactions regardless of cleared status
Credit limit exceeded Available credit defaults to zero (cannot go below zero)

10. Accounting Regulation Validation

Standard Requirement Compliance
IAS 7 — Statement of Cash Flows Separate disclosure of operating, investing, and financing cash flows ✅ The Cash Flow Statement report classifies by account type; the Bank Account Summary provides detailed cash movement breakdown.
IAS 1 — Presentation of Financial Statements Cash and cash equivalents must be presented as a line item on the Balance Sheet ✅ Cash at Bank is a standard Balance Sheet line item under current assets.
IAS 21 — Foreign Currency Monetary items (cash) must be revalued at period-end exchange rates ✅ Bank accounts with a foreign currency use the account's own currency for direct balance and base currency for reporting.
IFRS 9 — Financial Instruments Financial assets (cash) are derecognised when cash is received or paid ✅ Every receipt and payment creates an immediate GL impact; DR = CR is guaranteed.
IAS 8 — Accounting Policies Consistent treatment of cash transactions across periods ✅ Standard double-entry for all cash movements; all transaction types follow consistent GL patterns.
DR = CR — Double-entry bookkeeping Every transaction must balance ✅ Every receipt, payment, transfer, and Journal Entry affecting cash creates balanced Dr and Cr entries.
Bank Reconciliation — Internal Control Regular reconciliation of book balance to bank statement ✅ Dedicated Bank Reconciliation module with Cleared and Pending status tracking.
Opening Balances — Continuity Opening balance must equal the prior period's closing balance ✅ Opening Balance Entry creates a synthetic GL entry flagged as an opening entry; the Retained Earnings contra ensures balance continuity.

10.1 Pre-Save Checklist

[ ] Bank account name is set
[ ] Currency matches the actual bank account (leave empty for base currency)
[ ] Division is set if required for reporting
[ ] Control account is correct (defaults to Cash and Cash Equivalents)
[ ] IBAN is set if international transfers are expected
[ ] Opening balance is set via Opening Balance Entry or an initial Receipt or Payment
[ ] Credit limit is set if the account has an overdraft facility
[ ] Inactive accounts are properly marked as inactive
[ ] All transactions affecting this account use the correct bank account selection

10.2 Complete User Workflow — Opening Balance to Period-End Balance

Step-by-step process for setting up a bank account and viewing the Bank Account Summary:

Step 1 — Create the Bank Account:

Navigation: Bank and Cash Accounts → New Bank or Cash Account
- Name: Operating Account
- Code: OP-001
- Currency: (leave empty — base currency BDT)
- Control Account: (leave empty — defaults to Cash & Cash Equivalents)

After saving, the account appears in the list with zero balance.

Step 2 — Set the Opening Balance:

Navigation: Settings → Opening Balances → New Opening Balance Entry
- Account: Cash and Cash Equivalents
- Bank Account: Operating Account
- Debit or Credit: Debit
- Amount: 500,000.00
- Entry Date: 1 Jan 2026
- Financial Year Start: 1 Jan 2026

GL entries created:
  Dr  Cash and Cash Equivalents (Operating Account)    500,000.00
    Cr  Retained Earnings                                           500,000.00
  DR = CR ✅

Step 3 — Record a Receipt (AR Collection):

Navigation: Receipts → New Receipt
- Received In: Operating Account
- Amount: 100,000.00
- Customer: Customer ABC
- Invoice: INV-001

GL entries created:
  Dr  Cash (Operating Account)                          100,000.00
    Cr  Accounts Receivable (Customer ABC)                           100,000.00
  DR = CR ✅

Effect: Cash increases by 100,000.00. The contra account (AR) inflow 
appears in the Bank Account Summary under "Inflows — Accounts Receivable".

Step 4 — Record a Payment (AP Payment):

Navigation: Payments → New Payment
- Paid From: Operating Account
- Amount: 75,000.00
- Supplier: Supplier XYZ
- Bill: BIL-001

GL entries created:
  Dr  Accounts Payable (Supplier XYZ)                    75,000.00
    Cr  Cash (Operating Account)                                       75,000.00
  DR = CR ✅

Effect: Cash decreases by 75,000.00. The contra account (AP) outflow 
appears in the Bank Account Summary under "Outflows — Accounts Payable".

Step 5 — Receive an Export LC Payment:

Navigation: From the Export LC View → Click "Receive Payment"
- Bank Account: Operating Account
- Amount: 250,000.00 (pre-filled from the LC)

GL entries created (4 entries):
  Cr  Export LC Receivable                              250,000.00
  Dr  Export LC AR Clearing                             250,000.00
  Cr  Accounts Receivable (SI)                           250,000.00
  Dr  Cash (Operating Account)                           250,000.00

Effect: Cash increases by 250,000.00. This appears in the Bank Account 
Summary under "Export LC Receipts".

Step 6 — Record a Correction Journal Entry:

Navigation: Journal Entries → New Journal Entry
- Is Export LC Adjustment (if LC-related) or leave unchecked for general adjustment
- Line 1: Dr  Expense Account              5,000.00
- Line 2: Cr  Cash (Operating Account)      5,000.00

GL entries created:
  Dr  Expense Account                                     5,000.00
    Cr  Cash (Operating Account)                                         5,000.00
  DR = CR ✅

Effect: Cash decreases by 5,000.00. This appears in the Bank Account 
Summary under "Journal Entries".

Step 7 — Run the Bank Account Summary Report:

Navigation: Reports → Bank Account Summary → New Report
- Bank Account: Operating Account
- Period: 1 Jan 2026 to 31 Mar 2026

Report Output:
  Cash at Beginning (Opening Entry)            500,000.00
  Inflows:
    Accounts Receivable                         100,000.00
  Outflows:
    Accounts Payable                            -75,000.00
  Net Increase / Decrease                        25,000.00
  Export LC Receipts                            250,000.00
  Journal Entries                                -5,000.00
                                                  ──────────
  Cash at End                                  770,000.00

Verification:
  500,000 (opening) + 100,000 (inflow) − 75,000 (outflow)
  + 250,000 (export LC) − 5,000 (JE) = 770,000 ✅

End of Bank and Cash Accounts User Guide

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