After you create a Bank Account, you can't convert it to a normal Account (or vice versa). However, you can follow the workaround below depending on your circumstances.
Why
When you create a bank account, it activates specific banking features across the product.
You can edit the ledger class or subclass from the Chart of Accounts, but the bank features associated will remain regardless.
Similarly, if you created a normal account, you can change it to a bank category but it won't activate the banking features and won't show in the banking tab.
Workaround
If there’s no transaction yet
If there’s no transaction yet
If you haven't posted any transaction yet, you can delete the existing ledger account from the Chart of Accounts page.
You can then recreate a new account with the same details (Code/Account Name/Class) but this time as a Bank account or Account as relevant.
If you already posted transactions
If you already posted transactions
If you've posted transactions in the account, you won't be able to delete it.
Instead, you can follow the alternative steps below to clear the balance and deactivate the account.
Step 1 - Change the account's Code and Name
Step 1 - Change the account's Code and Name
You can edit the existing account to change its Code and Name. This is optional, but it will help you manage the deactivated account, most especially a bank account as it will still show in the product.
EXAMPLE:
You can rename a normal account as DEACTIVATED. You can deactivate it later from your dropdowns.
You can rename a bank account as DO NOT USE as you can't deactivate bank accounts.
Step 2 - Clear the existing account's balance
Step 2 - Clear the existing account's balance
You can clear a normal account's balance via a journal entry.
📌TIP: You can use the Journal summary and Account details reports to review the nominal activity and check the exact balance remaining.
To clear a bank account's balance, you need to create a bank statement batch entry and post a payment or receipt. Select the account category of your choice.
📎NOTE: You can't create a journal to clear the bank's balance directly, you have to use the statement batch. However, you can still create journals to correct any ledger activity.
Step 4 - Deactivate the old account - (except bank accounts)
Step 4 - Deactivate the old account - (except bank accounts)
You need to wait after year-end and close the period to be able to deactivate the old account from the Chart of Accounts.
📎NOTE: It isn't possible to deactivate it in the current period if you performed the entry to remove any remaining balance. See below:
To deactivate the account, go to the Chart of Accounts, select the account and toggle the Active switch.
Once deactivated, the ledger account won't be available for selection in the drop-down lists.
📎NOTE: You can't deactivate a bank account, but you can still clear its balance and name it as DO NOT USE.