User Guide - Recording a Bank Transfer

Below are the recommended best practices and corresponding journal entries for recording bank-to-bank transfers, including checks issued from one account and deposited into another.

Best Practice When recording a check issued from one bank account to another, I recommend creating an adjustment journal entry rather than processing the transaction through Accounts Payable.

How to Create a Journal Entry

1. Navigate to Accounting > GL > Journal Entries
2. Select + Add Journal Entry
3. Choose Add Journal Entry (or Import JE From File)
4. Enter the Date and Memo
5. (Optional) Upload supporting documentation
6. Enter the journal entry details in each field
7. Select Save

Journal Entry: Check Issued From One Bank Account to Another Using a Clearing Account (recommended):

• Debit – Receiving Bank Account GL (Asset)
• Credit – Clearing Account GL (Asset)
• Credit – Issuing Bank Account GL (Asset)
• Debit – Clearing Account GL (Asset)

Journal Entry: Reserve Transfers from Operating to Reserve

• Debit – Reserve Bank Account GL (Asset)
• Credit – Operating Bank Account GL (Asset)
• Debit – Reserve Transfer/Allocation GL (Expense)
• Credit – Reserve Contribution GL (Revenue/Income)