Purpose
This function is used to record a transaction for the transfer of funds from one bank account to another.
This entry is expected to take place after the transaction has been made in the bank accounts and thus does not appear as an entry in the Bank Transfers module.
Once the transaction is entered, when reconciling bank statements, there will be a ‘Payment’ showing the transfer out of the ‘From’ bank and a ‘Deposit’ showing the transfer in to the ‘To’ bank.
A pre-requisite to using this function is the setting of a ‘Bank Clearing’ account in the General Ledger Control pointers which is used to move the funds between the bank balance sheet accounts.
The postings for this transaction are:
Debit Bank Clearing account Credit 'From' Bank account Debit 'To' Bank Balance account Credit Bank Clearing account
Data Input
Step 1 – Code
From Bank
Enter the Bank that the funds were transferred out from.
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Step 2 – Details
To Bank
Enter the destination Bank that funds where transferred to. The ‘To’ bank cannot be the same as ‘From’ bank.
Reference
Enter a reference for the transaction to help identify the transaction on the bank statements. Usually the reference entered into the banks portal/web site or software system would be used to assist with the reconciliation process.
Amount
Enter the amount of funds transferred.
For transfers to/from banks in foreign currency, enter the amount in the currency that was transferred.
Details
Enter a short description of the transfer. e.g. Move excess funds to investment acc.
Date
Enter the date the transfer occurred at the bank – this is the date shown/recorded in the bank reconciliation system.
Transaction Month
Select the transaction month, Current or Next.