A complete guide to managing banks, payments, reconciliation, and cheque processing. Learn how to automate vendor payments and reconcile bank statements.
The Banking Module in FastOneBusiness is a SAP-style bank management system that handles everything from managing bank masters to processing automated vendor payments and reconciling bank statements.
Think of it as your company's treasury department — it tracks which banks you use, how payments are made (NEFT, RTGS, UPI, Cheque), processes bulk payment runs, and matches your bank statement entries against ERP vouchers.
The Banking Module has its own dedicated section in the ERP sidebar with 8 views:
| View | Purpose |
|---|---|
| Banking Dashboard | Overview — bank balances, pending payments, recent activity |
| Banks & Accounts | Manage bank masters and house bank accounts |
| Payment Methods | Configure NEFT, RTGS, UPI, Cheque, IMPS payment types |
| Auto Payments | 3-step SAP flow: Proposal → Approve → Execute |
| Cheque Management | Cheque books, issue, clear, bounce cheques |
| Bank Reconciliation | Import bank statements and match with ERP vouchers |
| CSV Formats | Bank plugin integrations (API, SFTP, CSV) |
| Payment Advice | Generate and send payment advice to vendors |
A Bank represents a banking institution (e.g., SBI, HDFC, ICICI). You create one bank master for each bank you work with.
| Field | Description | Example |
|---|---|---|
| Bank Name * | Name of the bank | State Bank of India |
| Bank Key (IFSC) | Unique bank identifier | SBIN0001234 |
| SWIFT Code | International bank code | SBININBB |
| BIC | Bank Identifier Code | SBININBBXXX |
| IFSC | Indian Financial System Code | SBIN0001234 |
| Country | Country code | IN |
| City | City where bank is located | Mumbai |
| Address | Bank branch address | Fort, Mumbai 400001 |
A House Bank Account represents your company's specific account at a bank. Each account has a role and settings.
| Field | Description | Example |
|---|---|---|
| Bank * | Reference to Bank Master | State Bank of India |
| Account ID | Internal identifier for this account | 001 |
| Account Number * | Your bank account number | 30123456789 |
| Account Name | Name on the account | FastOneBusiness Pvt Ltd |
| Account Type | Current or Savings | Current |
| Clearing GL | General Ledger for this account | State Bank - Current A/c |
| Bank Role | Main, Incoming, Outgoing, or Petty | Main |
| Max Daily Amount | Daily payment limit | 50,00,000 |
| Payment Ranking | Priority when auto-selecting accounts | 1 |
Payment Methods define how payments are made. The system uses these to auto-select the best method based on amount.
| Method | Type | Typical Use | Amount Rules |
|---|---|---|---|
| NEFT | Bank Transfer | Regular vendor payments | Up to ₹2,00,000 |
| RTGS | Bank Transfer | Large-value payments | Above ₹2,00,000 |
| IMPS | Bank Transfer | Instant transfers | Any amount |
| UPI | UPI | Quick small payments | Up to ₹1,00,000 |
| Cheque | Cheque | Traditional payments | Any amount |
| Field | Description |
|---|---|
| Method Code | Short code (NEFT, RTGS, UPI, etc.) |
| Method Type | Category: bank_transfer, upi, cheque, dd, cash, online |
| Min Amount | Minimum payment this method supports |
| Max Amount | Maximum payment this method supports |
| Auto-Select | When enabled, system picks this method based on amount rules |
| File Format | CSV format for payment file generation (neft_csv, rtgs_csv, upi_vpa, penny_drop) |
The Automatic Payments feature follows SAP's 3-step payment run process:
Choose date range, payment method filter, and bank account. The system scans all unpaid purchase vouchers within the date range and groups them by vendor.
Review each payment line showing: Vendor name, Bank A/c number, IFSC, payment method, amount, and any block reasons. Vendors without bank details are automatically blocked.
The system generates a bank-specific CSV file with all payment details (Beneficiary Name, Bank A/c, IFSC, Amount, Payment Mode). Download the file and upload to your bank's portal.
You have 15 vendors to pay this month, totalling ₹8,50,000. Instead of creating 15 individual payment vouchers:
Cheque Management handles the full lifecycle of cheque-based payments:
| Stage | Action | Status |
|---|---|---|
| Cheque Book | Create cheque book with series range | Available |
| Issue | Assign cheque to a payment | Issued |
| Clear | Mark cheque as cleared by bank | Cleared |
| Bounce | Mark cheque as bounced | Bounced |
| Register | View complete cheque register | All statuses |
When creating a cheque book, you specify:
The system auto-generates 50 cheque records with sequential numbers.
When issuing a cheque, you select the bank account, enter cheque number, payee name, amount, and date. The cheque is linked to a vendor ledger for tracking.
Bank Reconciliation matches your bank statement entries against ERP vouchers. This ensures your books match your bank balance.
Date Description Reference Debit Credit (or Withdrawal / Deposit) Balance| Left Panel | Right Panel |
|---|---|
| Bank Statement Lines (from CSV) | ERP Vouchers (unmatched) |
| Date, Description, Reference, Debit, Credit | Number, Date, Narration, Amount |
| Checkbox to select for matching | Select checkbox to link |
Your SBI statement shows a debit of ₹45,000 on April 5th with ref "NEFT/0045". In ERP, you have a Payment voucher PAY/2026-27/0012 for ₹45,000 dated April 5th to vendor ABC Corp.
Bank Plugins allow the ERP to connect directly with banks for automated data exchange. Four integration types are supported:
| Type | Description | Use Case |
|---|---|---|
| API (REST) | Direct REST API connection | Modern banks with API portals |
| SFTP | Host-to-Host file transfer | Enterprise banking integrations |
| CSV | Manual CSV file upload/download | Any bank with CSV export |
| Sandbox | Test environment | Development and testing |
| Field | Description |
|---|---|
| Plugin Name | Display name (e.g., "HDFC API") |
| Plugin Type | api, sftp, csv, or sandbox |
| Bank Reference | Link to your Bank Master |
| API Endpoint | REST API URL (for API type) |
| Client ID / Secret | API credentials |
| SFTP Host / Port | SFTP server details |
| Feature Flags | Enable/disable: NEFT, RTGS, IMPS, UPI, Balance Enquiry, Statement Download, Auto Reconciliation |
9 downloadable CSV templates for bank-specific payment file formats:
Test Connection, Sync Balance, and Submit Payment operations. Test Connection validates credentials, Sync Balance fetches current account balance, and Submit Payment sends a payment instruction to the bank.
Payment Advice is a document sent to vendors informing them that a payment has been initiated. It includes payment details like amount, date, reference number, and bank details.
Go to Banking → Banks & Accounts → + Add Bank. Enter bank name, IFSC, SWIFT, city. Save.
Click + Add Account. Select your bank, enter account number, account name, set role to "Main", link a Clearing GL (your bank ledger from Chart of Accounts). Set max daily amount and payment ranking.
Go to Banking → Payment Methods. The system may already have default methods (NEFT, RTGS, etc.). Edit them to set min/max amounts and enable auto-select.
Go to Masters → Vendors. Edit each vendor and add: Beneficiary Name, Bank Name, Bank Account No., Bank IFSC, and Preferred Payment Method.
Go to Banking → Auto Payments → + New Proposal. Select date range and bank account. Click Create. Review the proposed payments.
After approving the proposal, click Execute Payment Run. Download the generated CSV file and upload to your bank's portal.
Download a CSV statement from your bank portal. Go to Banking → Bank Reconciliation → Import Statement. Upload the CSV.
Click Auto-Match to match statement lines with ERP vouchers by date and amount. Manually match any remaining. Click Confirm Selected Matches.
The Banking Module integrates with the accounting system through General Ledger entries and Voucher types:
| Banking Action | Accounting Entry | Voucher Type |
|---|---|---|
| Payment to Vendor | DR Vendor Ledger / CR Bank Ledger | Payment Voucher |
| Receipt from Customer | DR Bank Ledger / CR Customer Ledger | Receipt Voucher |
| Cheque Bounced | Reverse the original entry | Journal Voucher |
| Bank Charges | DR Bank Charges Ledger / CR Bank Ledger | Payment Voucher |
| Contra (Bank-to-Bank) | DR Destination Bank / CR Source Bank | Contra Voucher |
Each vendor can have bank details stored for automated payments. This information is used when generating payment files.
| Field | Description | Example |
|---|---|---|
| Beneficiary Name | Name as registered with bank | ABC Suppliers Pvt Ltd |
| Bank Name | Vendor's bank | HDFC Bank |
| Bank Account No. | Vendor's account number | 50100012345678 |
| Bank IFSC | IFSC code | HDFC0001234 |
| UPI VPA | UPI address (if applicable) | abc@hdfcbank |
| Preferred Payment | Default payment method | NEFT |
The Banking Dashboard provides a real-time overview of your banking operations:
| Card | Description |
|---|---|
| Total Balance | Combined balance across all house bank accounts |
| Pending Payments | Total amount in un-executed payment proposals |
| Unreconciled | Bank statement lines not yet matched with ERP vouchers |
| Cheques Outstanding | Issued cheques not yet cleared |
A: Yes. You can configure only the payment methods you use. If you only use Cheque payments, just set up Cheque as your payment method and skip NEFT/RTGS configuration.
A: The Payment Proposal will block that vendor's payment line with a reason "Missing bank details". You'll need to add the vendor's bank information before including them in a payment run.
A: The current payment methods are designed for INR payments (NEFT, RTGS, UPI). For foreign currency payments, create manual payment vouchers with the appropriate currency and exchange rate.
A: Create a Payment Voucher for the bank charges amount. Debit your "Bank Charges" expense ledger and credit the bank ledger. This is separate from vendor payments.
A: Yes. Bank charges, interest, or rounding differences are common. Import the statement, manually match what you can, and create Journal entries for the differences (e.g., bank charges, interest earned).
A: Payment Runs that haven't been uploaded to the bank can be voided. If the payment has already been processed at the bank, create a reversal entry (Receipt voucher) to offset the payment.
A: The current system supports manual payment proposals and runs. You can create proposals as frequently as needed (daily, weekly, monthly). The "Auto-Match" in reconciliation automates the matching step.
A: Go to Cheque Management, find the cheque, and click "Bounce". The system creates a reverse Journal entry to undo the original payment. You can then re-issue or follow up with the vendor.
A: Yes. Go to Payment Advice, select the payment run, and generate payment advice documents to send to vendors. These include payment details, reference numbers, and invoice breakdowns.
A: 9 bank-specific CSV templates are available for download: SBI, HDFC, ICICI, Axis, Kotak, PNB, Bank of Baroda, Canara Bank, and a Generic format. These templates match the payment file format expected by each bank's portal.
A: Each House Bank Account has a configurable "Max Daily Amount" limit. The system warns you if a payment run exceeds this limit. Individual payment methods also have min/max amounts (e.g., NEFT up to ₹2L, RTGS above ₹2L).
A: Yes. Use the Vendor Balances report under Reports → Payables, or check the vendor's ledger account in Reports → Ledger A/c. All payments appear as Payment vouchers with banking references.