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“What is the best way to move funds from one of our bank accounts to another asset account?”
I get that question a lot. There are a couple of ways, but perhaps the best way is to use Enter Transactions in Bank Account Management.
The reason is simple. If you make a manual journal entry in General Ledger, the transaction will only show in one account in Bank Reconciliation. But, if you use Enter Transactionsin Bank Account Management, then both accounts will show the entry in the reconciliation screens. Granted, the entry screen may be a bit confusing.
The following steps illustrate moving $1,000.00 from the Operating Account (10110) to the Savings Account (10180).
- Navigate to Bank Account Management
- Hover over Enter and choose Transaction
- Verify that the Financial Settings Bank Account shows the Operating Account code. (Screenshot above shows setting for the operating account)
- Enter the Savings Account’s account code as shown above
- Enter a description
- Enter the transfer amount in the Charge field.
NOTE: This entry will create a Credit transaction in the Operating account, and a Debit transaction in the Saving Account.
- Click Update to save your entry
- Hover over Manage and choose Unposted Transactions
- Select the transaction you just created and click Post Transactions