Recording the transfer of funds from one Bank Account to another Bank Account in Accounting Seed is accomplished by creating a Journal Entry.
Record a Bank Transfer using Journal Entries
- Navigate to Accounting Home and under General Ledger Entry, click Journal Entries.
- Create a Journal Entry. Name it appropriately e.g. Transfer from Savings to Checking
- Create 2 Journal Entry Lines to record the appropriate Debits and Credits
- Debit the Bank Account receiving the money (Checking)
- Credit the Bank Account sending the money (Savings)
- Both Journal Entry Lines will be available to clear on the individual Bank Reconciliations. The debit will show as a deposit and will have a source of Journal Line, the credit will show as a disbursement also with a source of Journal Line.
- If you need to create a Cash Disbursement as part of this transaction (you want to cut a check out of Accounting Seed) then we recommend you do the following:
- Enter the check number in the comments field of the journal entry header or lines for traceability.
- Create a Cash Disbursement and leave it Unposted as a "Memo" Cash Disbursement. This will allow you to cut a check without creating duplicative entries in the general ledger. The Journal Entry steps above take care of the debits and credits to the correct bank accounts.