How to record a deposit to or a withdrawal from a savings account, or an electronic funds transfer between bank accounts
- A journal entry is used to record a deposit or a withdrawal from savings accounts and also, to record an electronic transfer between bank accounts.
- If the savings account is set up as a bank account, a deposit can be entered using the Deposits screen. Do not use the deposit screen to record electronic funds transfers between bank accounts as only the debit portion of the transaction will be present on a bank reconciliation.
Using the Journal Entries Screen
A withdrawal from the savings account would be a credit to the savings account and a debit to some other account (usually expense).
A deposit to the savings account would be a debit to the savings account and a credit to some other account.
If you are recording an electronic funds transfer that is from one bank account to another bank account, debit the account that the money is going into and credit the account it is coming out of.