Introduction

The purpose of this procedure is to transfer funds between checking and investment accounts using the Journal Entry process, updating the Bank Account System correctly. Transfers can only be done using journal entries if both accounts are at the same bank. If one of the accounts is at a different financial institution, different procedures have to be used to transfer funds.

Transfers between accounts at Same Bank

Determine the amount of the transfer. Generally, transfer amounts should be rounded off to the nearest thousand, to reduce data entry errors.

Enter a journal entry in the log book reflecting a transfer from checking to investment (Debit Savings or Investments and Credit Cash) or a transfer from investment to checking (Debit Cash and credit Savings or Investments).

Post the journal entry to the G/L system (menu# 5.2.1). For entries posted to G/L accounts associated with a Clients Bank Account, you will need to identify the BANK ID number for the account you select. Note this number in the log book. Once posted, mark out your entry in RED in the J/E log so it will not be posted again later by someone else.

Print/fax the Transfer Request. The system generates a special transfer request anytime a J/E is posted using G.L. account #4040. Have this form signed, then faxed to the bank.

File the Transfer Back-up. Since the system generates one form for multiple transfers, make a copy of the form for each client a transfer was processed for. Hold these forms until the transfer advices come back from the bank, then verify the amounts and account numbers encoded by the bank, they do make mistakes. When all transfers match, then file the transfer forms in the financial file on the left side.

Transfers from Ck'ng to Non-Bank Investment Acct

Request a check from Accounts Payable. Use the G/L account number for Savings/Investments. Make the check payable to the client.

Post a Bank Account Transaction (menu# 7.2.2), INCREASING the amount of the appropriate investment account by the same amount of the check. Use 5 (GL) as your JRNL source.

Transfers from Non-Bank Investment Acct to Ck'ng

When the check is received, create an A/R (T/R) invoice in Cust# OTHER, using the G/L account number for Savings/Investments. Deposit the check and post the payment to the invoice you created.

Post a Bank Account Transaction (menu# 7.3), DECREASING the amount of the appropriate investment account by the same amount of the check. Use 5 (GL) as your JRNL source.