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What are the uses of Account Type and Account Subtype

Hi everyone, does anyone know what are the uses of Account Type and Account Subtype?

are these (Account Type, Account Subtype) the exact terms? if not (which I think they aren’t) I recommend you update your Topic with the exact terms. I believe that would take away the guess work for anyone potentially responding.

Also the ERPNext Version you are using would be a helpful information

Hi @vrms, below are the screenshots of Account Type and Account Subtype

Account Type:


Account Subtype:


The only use I see is in the Bank Account as shown below

If Account Type and Account Subtype are intended for Bank Account only, then I think they should be renamed to Bank Account Type and Bank Account Subtype to avoid confusion.

I am currently using
ERPNext: v11.1.21 (master)
Frappe Framework: v11.1.22 (master)

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ther IS actually an a field account_type in the General Ledger Accounts (which is not related to the bank account entries whatsoever) but I do not think it is linked with the entries you are mentioning here.

So this would be another reason to rename the Account Type & Account Subtype entries as you have suggested.

Actually I am wondering whether they are needed at all. For now it seems to me there is no real benefit from this and on top it causes confusion and raises questions which end up Topics like this.

Account type is used in some bookings. For example, when creating Payment Entry, the Payment Account From/To dropdown here will only show accounts in “Bank” or “Cash” type.