Bank Code

Each bank where you do business must be identified with a unique two-character bank code. 

When you enter a cash sale, payment, write-off, or clearing transaction in Accounts Receivable, you must specify the bank where the corresponding account is kept.  In AR, the bank code defaults to the bank defined on the Customer Master File. 

When you pay a vendor in Accounts Payable, you must specify the bank where the payment will be made.  In AP, the bank code defaults to the bank defined on the Vendor Master File.  A system-wide default for vendors can be defined on Reference File category 206.  The code on 206 is used as a default when you define a new vendor.

The code for the bank/cash account to be used for payment of an item.  The bank code is used in the payment process to determine the GL account for the cash accounting transaction.  This code defaults to the bank code for this vendor on the Vendor Master File.  The bank code must exist for the paying company/location on the Bank Account Master File.