Performing a bank transfer is a two-step process. This involves using a clearing account to wash the transaction through. In the first step, deposit the money into the receiving bank. In the second step, remove the deposit from the sending bank.

Step 1: Deposit the money into the receiving bank   SEE BELOW
Step 2: Remove the deposit from the sending bank  SEE BELOW 

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Step 1: Deposit the money into the receiving bank

1 On the Accounts Receivable Main menu, click Cash Receipts Entry.

2 In the Cash Receipts Deposit window, select Cash at the Deposit Type field, and enter the Bank Code, Deposit Date, Deposit Number, and Deposit Amount fields.

3 Click OK.

4 In the Cash Receipts Entry window, at the Customer No. field, enter a default "cash" customer in which to post the transfer.

5 At the Check No field, enter a check number for the deposit transfer.

6 On the Header tab, at the Amount Received field, enter the amount of the deposit transfer.

7 On the Lines tab, at the G/L Account field, enter the clearing account established in the general ledger. The amount posted defaults to the amount of the transfer.

8 Click OK. Accept the entry.

9 Print and update the Cash Receipts Journal and Daily Transaction Register. The transfer will debit the bank account and credit the clearing account.

Step 2: Remove the deposit from the sending bank

1 On the Accounts Receivable Main menu, click Cash Receipts Entry.

2 In the Cash Receipts Deposit window, select Cash at the Deposit Type field, enter the Bank Code, Deposit Date, and Deposit Number.

3 At the Deposit Amount field, enter the amount as a negative number, then click OK.

4 In the Cash Receipts Entry window, at the Customer No. field, enter a default customer in which to post the cash receipt.

5 At the Check No field, enter a check number.

6 On the Header tab, at the Amount Received field, enter the amount of the transfer as a negative value.

7 On the Lines tab, at the G/L Account field, enter the clearing account established in the general ledger. The amount posted should default as the negative value.

8 Click OK. Accept the entry.

9 Print and update the Cash Receipts Journal and Daily Transaction Register. The transfer will debit the clearing account and credit the bank account.