Module 5 · Core · 8 min read

Bank entries and transfers between accounts

You will be able to: Choose the right Entry Type for a deposit, withdrawal, contra or bank charge; Post a transfer between two accounts with charges; Explain what hold in clearing means for an in-transit transfer.

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Not every cash movement is a receipt or a payment. Cash taken to the bank, cash drawn out, a bank fee, or a move from one account to another do not involve a customer or supplier. Zeyto has two screens for them, both under Accounting, Banking.

A new bank entry form with the Entry Type choices and the bank account, amount and narration fields.

Accounting, Banking: deposits, withdrawals, transfers and charges.

Accounting, Banking: deposits, withdrawals, transfers and charges.

Bank Entry

Banking, then + New, opens the Bank Entry form. Choose the Entry Type first, because the fields change with it.

A new Inter-Account Transfer form with the from and to accounts, the in-transit and clearing account fields and the posting preview.

Inter-Account Transfer: move money between cash and bank accounts.

Inter-Account Transfer: move money between cash and bank accounts.
Entry TypeEntry posted
Bank DepositDebit the bank ledger of the chosen Bank Account, credit the Source Account (starts on cash)
Bank WithdrawalDebit the Destination Account (starts on cash), credit the bank ledger
Contra TransferDebit the To Account, credit the From Account
Bank ChargeDebit the Expense Account (for example Bank Charges), credit the bank ledger

Each entry posts two balanced lines and the Accounting impact section shows them before you press Post Entry. A draft changes nothing. A posted entry is corrected with Amend and reversed with Cancel; Cancel acts at once, with no confirmation box.

Banking the day's cashAt close you take AED 5,000 from the till to the bank. Bank Entry, Entry Type Bank Deposit, Amount 5,000, Bank Account your current account, Source Account Cash in Hand, Reference the paying-in slip number. Post Entry: debit Bank 5,000, credit Cash in Hand 5,000. Then a bank fee of AED 30 appears: Entry Type Bank Charge, Amount 30, Expense Account Bank Charges. Debit Bank Charges 30, credit Bank 30.
Watch outBank Entry records no VAT. For a bank charge that carries VAT you want to claim, book it through Expense Entry instead. A bank account needs a GL Account on its master before it appears on the form, and the Date must fall in an open fiscal year.

Inter-Account Transfer

Use Inter-Account Transfer for cash to bank, bank to bank or a branch remittance, with optional charges. You choose From Account, To Account and Amount. Received Amount is the Amount less the charges.

  • In-Transit, Immediate: the money reaches the To Account on the same day.
  • In-Transit, Hold in clearing until recon: the debit goes to a clearing account (Cash in Transit unless you pick another) instead of the To Account.
  • Charges and Charges Account: the fee is debited to the expense account you choose, and the From Account is credited the full Amount.
A transfer with a feeYou send AED 10,000 from your current account to a savings account and the bank charges AED 25. Amount 10,000, Charges 25, Received Amount 9,975. Entry: debit To Account 9,975, debit Bank Charges 25, credit From Account 10,000.
Watch outZeyto does not move held money on for you. When the bank confirms an in-transit transfer, post a Contra Transfer on the Bank Entry screen from the clearing account to the To Account. Marking rows cleared in Bank Reconciliation posts nothing. Zeyto also does not check that the From Account holds enough money.
TipMode on the transfer form (Cash deposit, Cheque, Online transfer, Branch remittance) is only a label. It changes nothing that is posted.

Try it in the demo

  1. Open demo.zeyto.app/demo-app/ and sign in with the public demo user (admin, password demoAdmin123).
  2. Open Accounting, Banking and press + New.
  3. Switch Entry Type through the four options and watch the fields change.
  4. Open Accounting, Inter-Account Transfer, press + New and look at In-Transit and Clearing Account.
  5. Read the Posting Preview panel after typing an Amount and a Charge (do not post in a shared demo).
Open the live demo

Public demo company, sign in as admin / demoAdmin123. Data refreshes nightly.

Key takeaways
  • Bank Entry covers deposit, withdrawal, contra and bank charge.
  • Every entry posts two balanced lines and no VAT.
  • Transfers can carry charges; Received Amount is Amount less charges.
  • In-transit money needs a second entry to reach its destination.

Check yourself

4 questions on this lesson. Not timed, not the exam, and you can try again. Score 60% or more, and read the lesson, to complete it.

1. Which are Entry Types on the Bank Entry form?

Select all that apply.

2. You send AED 10,000 between your accounts and the bank charges AED 25. What is the Received Amount?

3. In an Inter-Account Transfer set to Hold in clearing until recon, where does the debit go at posting?

4. A Bank Entry of type Bank Charge records VAT, so the bank's VAT can be claimed from it directly.

Previous: Receipts and paymentsNext: Post-dated cheques: receive, hold and clear

Practice questions for this module · Printable study sheet