Transferring funds between bank accounts

You use either the 1-1 Cheques/Bank Charges window or the 1-2 Deposits and Interest Charges window to open the Transfer Funds window, where you record funds transfers.

In the Transfer Funds window, you specify the bank accounts involved in the transfer. You must specify the two valid cash accounts that you are transferring funds from and to. Also, you specify a bank clearing account to offset the debit and credit from the two-part transfer.

The transfer is actually posted as two transactions:

• One transaction credits the account the funds you are transferring funds from and debits a cash clearing account.
• The other transaction debits the account receiving the funds and credits the cash clearing account.

Note that the net effect of the transfer on the clearing account is zero.

You reconcile one transaction for each bank account. You reconcile the transaction in the "From" account the same as you would for a cheque. You reconcile the transaction in the "To" account the same as for a deposit.

Note: If you try to void a transaction that is part of a transfer, the program warns you that the other transfer transaction will also be voided. You can choose to proceed or not. However, you cannot void one part of a transfer if the other transaction has been cleared.

To transfer funds:

1. Open the 1-1 Cheques/Bank Charges window or the 1-2 Deposits and Interest Charges window.
2. Click Options > Transfer to Another Account .
3. In the Transfer Funds window:

   1. In the From Bank Account box, select the cash account from which you are transferring funds.

   2. In the To Bank Account box, select the cash account to which you are transferring funds.

   3. In the Clearing Account box, select the account to use to offset the debit and credit from the two-part transfer.

   4. In the Transaction# box, type a reference that you can use to look up this transfer, later.

   5. In the Description box, type a description for the transfer.

   6. For the Date box, accept the date displayed or type a different date for the transfer.

      The date you specify is used to determine the posting period for the transfer. You must have supervisor rights to enter a date that does not fall in the current posting period.

   7. In the Amount box, enter the amount of cash you are transferring.
4. Click [Post].