Recording the transfer of funds from one Bank Account to another Bank Account in Accounting Seed is accomplished by creating a Journal Entry.
Summary of Steps:
- From Accounting Home click on the "Journal Entries" Tab
- 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 on that cash disbursement you should debit and credit the same non-bank account. For example, debit and credit the AP control account. You should NOT use a bank account for the debits and credits on the Cash Disbursement because if you do it will throw off the bank reconciliation. The Journal Entry steps above take care of the debits and credits to the correct bank accounts.