A question I get frequently is “How should I record a bank transfer?” Even though this is a common accounting task, Sage 50 doesn’t provide a specific function for it. So here are three methods you can use to record a bank transfer in Sage 50. They’re all easy, and they all work. So just pick the one you like best and use it consistently. <\/p>\n\n\n\n
Go to the Tasks<\/em> menu and choose General Journal Entry<\/em>. In the General Journal Entry window, enter the date of the transfer, then enter a reference. The reference can be as simple as “Transfer”, or a confirmation number from the bank. Next, enter the GL Account number for the bank account receiving the transfer. Enter a brief description. Then enter the amount of the transfer in the Debit column. On the next line, enter the GL Account number for the bank account the money is coming out of. The description will be copied automatically but you can edit it if you want to. Then enter the transfer amount in the Credit column. Click Save. Another option is to record the transfer as a deposit into the account receiving the transfer. Go to the Tasks<\/em> menu and choose Receive Money<\/em>. Start by entering a unique Deposit Ticket ID, since this won’t be combined with other deposit items. For the Customer ID, you can either create a customer such as “Transfer Checking to Payroll”, or skip the customer ID field and just type a description in the Name field. (If you set up a customer, use the bank account the money will come out of as the default sales account for that customer.) You will need to enter something in the Check\/Reference No.<\/em> field. A bank confirmation number works, or whatever you want to use. You can skip the Receipt Number<\/em>. Enter the date of the transfer. Make sure the Cash Account<\/em> is set to the account money is being transferred into. Then, on the Apply to Revenues<\/em> tab, enter a brief description, set the GL Account to the bank account money is being transferred out of. And finally, enter the amount. The final option is the record transfer as a payment out of the bank account the money is coming out of. Go to the Tasks<\/em> menu and choose Payments<\/em> (or Bills > Pay Bills<\/em>). You could also use Write Checks<\/em> if you prefer. Make sure the Cash Account<\/em> is set to the bank account the money will be transferred out of. For the Vendor ID, you can either create a vendor such as “Transfer Checking to Payroll”, or skip the vendor ID field and just type a description in the Name field. (If you set up a vendor, use the bank account the money be transferred into as the default expense account for that vendor.) Make up a Check\/Reference No.<\/em> Enter the date of the transfer. Enter a short description on the Apply to Expenses<\/em> tab. Set the GL Account to the account the money will be transferred into. Then enter the amount. A question I get frequently is “How should I record a bank transfer?” Even though this is a common accounting task, Sage 50 doesn’t provide a specific function for it. So here are three methods you can use to record a bank transfer in Sage 50. They’re all easy, and they all work. So just […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[9,3],"tags":[],"_links":{"self":[{"href":"https:\/\/www.iqaccountingsolutions.com\/blog\/wp-json\/wp\/v2\/posts\/2687"}],"collection":[{"href":"https:\/\/www.iqaccountingsolutions.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.iqaccountingsolutions.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.iqaccountingsolutions.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.iqaccountingsolutions.com\/blog\/wp-json\/wp\/v2\/comments?post=2687"}],"version-history":[{"count":1,"href":"https:\/\/www.iqaccountingsolutions.com\/blog\/wp-json\/wp\/v2\/posts\/2687\/revisions"}],"predecessor-version":[{"id":2688,"href":"https:\/\/www.iqaccountingsolutions.com\/blog\/wp-json\/wp\/v2\/posts\/2687\/revisions\/2688"}],"wp:attachment":[{"href":"https:\/\/www.iqaccountingsolutions.com\/blog\/wp-json\/wp\/v2\/media?parent=2687"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.iqaccountingsolutions.com\/blog\/wp-json\/wp\/v2\/categories?post=2687"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.iqaccountingsolutions.com\/blog\/wp-json\/wp\/v2\/tags?post=2687"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
If you have problems remembering which account to debit and which one to credit, you can set up memorized transaction<\/a> so all you have to do is fill in the amounts.
<\/p>\n\n\n\nMethod 2 – Cash Receipt (Receive Money)<\/h4>\n\n\n\n
The benefit of this method is that you don’t have to remember your debits and credits. You can also print a receipt if you want paper documentation of the transaction. However, some people have the option turned on the hide the GL Account field on the Apply to Revenues tab. If that is you, you’ll probably need to use one of the other methods.
<\/p>\n\n\n\nMethod 3 – Payments (Pay Bills)<\/h4>\n\n\n\n
Like the previous method, don’t have to remember your debits and credits when recording transfers as payments. You can also print the payment if you want paper documentation for the transaction. Very few people have the GL account hidden for vendor transactions, so it also avoids that potential problem.
One other benefit of methods 2 and 3 is that, if you set up a customer\/vendor, you could easily get a report showing all your transfers buy running a cash receipts journal filtered to that customer or a check register (or cash disbursements journal) filtered to that vendor.
As you can see, none of these methods are difficult. So pick the one you like best and be consistent so if you ever need to look up a transfer in Sage 50, you’ll know where you recorded it.<\/p>\n","protected":false},"excerpt":{"rendered":"