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BANKXFER
Transferring Funds Between Bank Accounts
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Transferring funds from one bank to the other requires two separate entries
-- one for the withdrawal and the other for the deposit. This is true
whether you issue a paper check and deposit it or if you do an electronic
transfer.
We suggest you make a new account in your chart of accounts for transfers
- any number in the expense area - how about 999
When you write the check from bank 2 post it to 999 and when you record the
deposit into bank 1 use 999 also. 999 should always have a zero total and
therefore not show on the p&L unless a one sided transfer was done.
+ + +
If the transfer is electronic, you would issue the 'withdrawal' by
recording a Miscellaneous Bank Transaction (option 5,5,5) where you would
specify Yes that the transaction subtracts from the account.
As with the above Check option you would post it to a designated transfers
account such as 999.
For the receiving bank you would issue the 'deposit' by recording a
Miscellaneous Bank Transaction (option 5,5,5) where you would specify No
that the transaction subtracts from the account.
You would post it to the same designated transfers account that you used
when transferring it OUT of the first bank account.