Performing Cash Transfers Using a Physical Check

Use this procedure to record the transfer of funds from one cash account to another using a physical check. This means that you will write/print a check from one account and then make a deposit to another account. The goal is to record these two transactions and also have the clearing account net to zero.

To make the payment

  1. From the Accounts Payable Menu, click Payments.
  2. Under Payment Type, select Check.
  3. Enter the Amount of the payment.
  4. Under Payee Information, select Standard, and then enter the Vendor Number of the bank you are writing the check from, and then press Tab.
  5. Make sure the Apply to Expenses check box remains selected.
  6. On the Apply to Expenses tab, click in the GL Account grid.
  7. Enter the Transfer Clearing Account Number in the GL Account Number field. Since this is a balance sheet account use NONE as the Job Number.
  8. Enter the Amount.
  9. Click the Print tab.

To print the check

  1. On the Print tab screen, click the Print button to display the Print Checks screen
  2. Select the Cash Account To Credit, and then press Tab. This is the account you are taking the money from.
  3. Press Tab again to default the Check Number field to the next available check number.
  4. Enter the date of transfer in the Check Date field.
  5. Print the check.
  6. Close the Payments screen.

To record the deposit

  1. From the Accounts Receivable Menu, click Payments.
  2. Under Payment Type, select Miscellaneous Deposits, and then press Tab.
  3. Under the Deposit Information, select the Company Number, GL Cash Account Number that you are making the deposit to, and Deposit Date, and then press Tab.
  4. Enter the Payment Amount. Make sure this amount is the same amount as the check you printed.
  5. Type a Miscellaneous Deposit Name. For Example: Transfer from Main Account to Payroll Account.
  6. In the grid, enter the General Ledger Account Number of the Transfer Clearing Account, and then press Tab. This should be the same clearing account number you used when creating the payment. Since this is a balance sheet account use NONE as the Job Number.
  7. Enter the Amount, and then press Tab. This should be the same amount. The Amount Left should reflect $0.00.
  8. Close to save the record.