Bank Sub Account
Bank Sub Account Bank Sub-Accounts represent outgoing bank numbers from which payments will be made. Numbers of outgoing account must be registered in the sub accounts so when APP is executed sub accounts will be used for the specific operation configured in the house bank.
A simple example to understand the concept : Let’s say, you have an account with “BANK A” this is your bank account which is your main bank account. Now “BANK A” can have many sub accounts according to your specific requirements. Let’s say: “BANK A” Check Received Accounts, “BANK A” Check Issued Account, “BANK A” Check received account…etc.
The BANK SUB ACCOUNT enables bank reconciliation. A simple example will be when a vendor is payed by cheque, time can pass before it is reflected on our bank statements. So such transaction is managed within a sub account. And when the bank statement is received the system checks for the cheque number and amount (within other details); and if the details match in the statement the transaction is cleared from the sub account and posted into BANK.