Bank accounts and transfers
The bursar moves KES 5,000 from the school bank account to petty cash. The accounting record needs two different ledger destinations: a decrease in bank and an increase in cash. It is neither new income nor an expense.
Register a bank or cash account
- Open Accounting > Banking > Accounts and select Bank account.
- Enter a recognizable name, financial institution and masked account number.
- Choose the currency and its eligible ledger account. Review the mapping before saving.
Record an internal transfer
The transfer records the movement in the books. Complete and verify any external banking action separately; this form is not a banking-network instruction.
- Open Transfers and select New transfer. If prompted, add the destination account first.
- Select different active From and To accounts mapped to different posting ledgers.
- Enter the amount, currency, exchange rate where applicable, posting date and remarks.
- Review the source and destination. Use the offered draft or posting action according to your review process.
Check both sides
- Inspect the transfer status and journal, then match each relevant bank-statement row.
- If posting fails, read the error and inspect the saved record before retrying.
- Do not map both accounts to the same ledger to bypass setup. A transfer must remain explainable and balanced.