Hello,
I have a question regarding the bank accounts. From my perspective the checkbox “Is Company Bank Account” means it is related to our company?
As I understand the default company account in customers and suppliers is the party bank account?
So I can’t choose the bank account for customers and suppliers if it is not checked as company bank account (there is a default filter in the field).
Or is the approach a different one?
Looking forward to your answers
Kind regards!
“Is Company Bank Account” checkbox indicates that the bank account is associated with the company. If you need to use a bank account for a customer or supplier that is not marked as a company bank account, you may need to adjust the settings or explore alternative configurations based on your requirements.
So I’m right with: The Company bank account is related to the own company.
But then the question what is this field in eg. customer doctype for?
Here, we can define the default company billing currency, default company bank account, and price list so that the default values are automatically filled whenever we create a transaction.
A “Company Bank Account” refers to a bank account that is specifically opened and used by a business or company, rather than an individual. This account is used for handling all the financial transactions related to the business, such as receiving payments, paying suppliers, managing payroll, and handling taxes.
In contrast to a personal bank account, a company bank account is typically tied to the legal entity of the business, and it is subject to the company’s registration and tax ID. It helps separate personal finances from business finances, which is important for legal, tax, and accounting purposes. Additionally, most banks will require documentation like the company’s registration details, tax identification number, and possibly personal identification of the business owners when opening a company bank account.
I’m starting to suspect that more (than I thought) choices of UI elements and their positions might be due to cultural specifics of local (read: Indian) law and business obligations.
It might for instance be easy for someone doing business in India to understand the concept of “company bank account” as it works in the country. On the other hand, in other countries, bank accounts are not necessarily tightly tied to legal registration or tax formalities. In Germany, for instance, you can do business with just your personal bank account, although you have to register your activity and get taxes accountabilities imposed which imply reporting etc., but it’s not tied to having a special bank account type, even if in your reporting forms you need of course separate the business transactions from the private ones, and supply the relevant proofs for all the business transactions on which the taxes are based on, but you don’t have to prove anything you do privately, and in fact the private activity enjoy certain explicit protections deeply anchored in foundational legislation of the country.
Today I searched for a moment the entry field for Items of the tariff code which I knew exists. I found it under the “Purchase” tab, as opposed to the “Selling” tab. Why is this? It makes no sense to me, because for both purchasing and selling internationally the same code applies (IIRC). So why not have it under a more generalized tab header like “accounting” or the basic data? It’s a world wide code, after all, why put it in too specific a category like this?
I don’t know the Indian legislation regarding customs/tariffs, so I say to myself that maybe it does perfectly make sense in India, but not in my country. It’s a small hassle, but that’s not the point.
The point is that the software will best fit into ANY international use case if it really sticks to first principles, and not only local ones, even regarding legal aspects.
My main confusion is if it refers to my own company (for example default bank account from which I will pay) or if it refers to the second party (supplier, customer, etc), bank account to which I will be doing wire transfers, for example.
In the current logic it is the second option. It is your own bank account which is used for this special supplier.
I see the need for having eg. different accounts for different currencies and send the correct one to the regarding supplier/customer etc.
For the first step I also expect to link the customer/supplier bank account is that present in the document but it will be only linked and it visible in the connections tab.
