Bank Clearance

Implementation Updated by Implementation

What is Bank Clearance?

This is equal to Bank Reconciliation. To clear bank entries in books as per bank statement is called Bank Clearance. By following this standard user can easily track from books the real balance of Bank account.


User generally post journal entry for payment in mode of cheque payable & receivable and later clear that entry with bank.

Use case

Suppose there is firm “XYZ Ltd”. They issue and receive lots of cheques in a month. So, they always have to track which one is cleared in bank.

With this option, data entry operator can post journal entries with Cheque Receivable & Payable. And later on clear entry in Bank Clearance by matching with bank statement.

Steps to be performed for GL Clearance.

1.Post the journal entry as per below screen shot.

2.Go to Cash & Bank.

2.1.Click on Bank Clearance.

3->i)Select receivable or payable account ii)Tick document iii)Enter reconciliation date iv)Select bank account v)Enter narration if required. Click on save.

3.1->Simulation will open and will show the entry to be posted.

3.2.Document generated.

4.Ledger-> Check the “Chq Payable” ledger. User can see in below screen shot that bank entry is posted and crossed with journal entry.

4.1.Ledger of Bank-> Here user can see the entry of reconciliation is posted in bank account.

5.If entry is wrongly reconciled then user can revert the reconciliation. Click on revert button marked in below screen shot.

5.1.Select document number and revert it.

How did we do?

Bank Payment