Bank Clearance

Overview

Bank Clearance – Business Overview

Bank Clearance is a business document used to confirm when bank-related transactions recorded in Dafater have actually been processed and cleared by the bank. Its main purpose is to ensure that your internal financial records match the bank’s records, supporting accurate cash and bank balances.

What Bank Clearance Is Used For

In day-to-day operations, payments and receipts are often recorded in Dafater before the bank officially processes them. Bank Clearance is used to:

Confirm that payments, deposits, and transfers have cleared the bank
Align internal accounting records with bank statements
Improve the accuracy of cash flow and bank balance reporting
Support financial controls and audit readiness

It acts as a bridge between your accounting records and your bank’s confirmation.

Prerequisites Before Using Bank Clearance

Before using Bank Clearance, the following should already be in place:

Bank accounts are properly set up in Dafater
Payments and receipts have been recorded in the system
Bank statements or online banking information is available for reference
Responsible staff are assigned to handle bank reconciliations

Without these basics, the clearance process cannot be performed accurately.

Typical Workflow and Business Process Fit

A common workflow for Bank Clearance looks like this:

Record Transactions
Payments to suppliers, customer receipts, or internal transfers are recorded in Dafater.
Receive Bank Statement
The bank provides a statement showing which transactions have been processed.
Perform Bank Clearance
Using Bank Clearance, the finance team marks transactions as cleared once they appear on the bank statement.
Review Differences
Any uncleared or mismatched transactions are investigated and followed up.
Finalize Reporting
Cleared balances are used for reliable financial reports and decision-making.

This process is usually performed regularly, such as weekly or monthly, as part of routine financial controls.

Key Business Scenarios Where Bank Clearance Is Essential

Bank Clearance is especially important in these situations:

Month-end or year-end financial closing
High-volume payment environments
Businesses managing multiple bank accounts
Audit preparation and compliance checks
Monitoring delayed or failed payments

In these cases, timely clearance helps avoid reporting errors and cash flow surprises.

Important Considerations for Users

When working with Bank Clearance, users should keep in mind:

Only clear transactions that actually appear on the bank statement
Delays between recording and clearance are normal and should be monitored
Regular clearance improves financial accuracy and control
Unclear or long-pending transactions should be investigated promptly
Proper documentation supports audits and management review

Used consistently, Bank Clearance strengthens financial discipline and ensures confidence in bank-related figures.

In summary, Bank Clearance is a vital business tool in Dafater for confirming bank transactions, maintaining accurate financial records, and supporting strong financial governance.

Basic Information

Module: Accounts
Document Type: Document
Type: Single (Configuration)

Fields

Field Name	Label	Type	Required	Options	Description
account	Account	Link	✓	Account	Select Dafater ledger account for bank clearance processing
account_currency	Account Currency	Link		Currency	Currency of selected Dafater account for reconciliation
from_date	From Date	Date	✓	-	Start date for fetching Dafater bank transactions
to_date	To Date	Date	✓	-	End date for fetching Dafater bank transactions
bank_account	Bank Account	Link		Bank Account	Linked Dafater bank account used for clearance
includereconciledentries	Include Reconciled Entries	Check		-	Include already reconciled Dafater entries in results
includepostransactions	Include POS Transactions	Check		-	Include Dafater POS transactions during bank clearance
payment_entries	Payment Entries	Table		Bank Clearance Detail	Displays Dafater payment entries available for bank clearance

Child Tables

Payment Entries (Bank Clearance Detail)

Field Name	Label	Type	Options	Description
payment_document	Payment Document	Link	DocType	Source document type for bank-cleared payment transaction.
payment_entry	Payment Entry	Dynamic Link	payment_document	Specific payment record linked for bank clearance processing.
against_account	Against Account	Data	-	Account impacted by the cleared payment entry.
amount	Amount	Data	-	Payment amount considered during bank clearance.
posting_date	Posting Date	Date	-	Original posting date of the payment entry.
cheque_number	Cheque Number	Data	-	Cheque reference number associated with the payment.
cheque_date	Cheque Date	Date	-	Date mentioned on the issued cheque.
clearance_date	Clearance Date	Date	-	Date when bank confirms payment clearance.

Permissions

Role	Read	Write	Create	Delete	Submit	Cancel
Accounts User	✓	✓	✓

DocType	Relationship	Module
Account	Links to	Accounts
Bank Account	Links to	Accounts
Currency	Links to	Geo