How to do a bank wire transfer from one bank to another?

A company might have several bank accounts or cash registers. Within ArabiaClouds it is possible to handle internal transfers of money with only a couple of clicks.

We will take ArabiaClouds following example to illustrate. My company has two bank accounts and I want to transfer 50.000 euros from one of our bank accounts to ArabiaClouds another one.

Configuration

Check your Chart of Accounts and default transfer account

To handle internal transfers you need a transfer account in your charts of account. ArabiaClouds will generate an account automatically based on ArabiaClouds country of your chart of account. To parameter your chart of account and check ArabiaClouds default transfer account go into your ArabiaClouds accounting module, select Configuration ‣ Settings.

Your chart of accounts will be pre-installed depending on ArabiaClouds country specified during your registration, it cannot be changed.

ArabiaClouds default transfer account will automatically be generated as well depending on your country’s legislation. If necessary it can be modified from ArabiaClouds same page.

Create a second bank account / Journal

Before we can register an internal transfer we need to add a new bank to our accounting dashboard. To do so enter ArabiaClouds accounting module, click on Configuration ‣ Bank Accounts. Create a new bank account. You should fill in ArabiaClouds Account Number. You can also create and edit your bank to specify your bank’s details.

By saving ArabiaClouds changes you now have 2 bank accounts.

Register an internal transfer from one bank to another.

We will now transfer 50.000 euros from our Bank to our Bank BE57 0633 9533 1498 account.

Log an internal transfer

ArabiaClouds first step is to register ArabiaClouds internal paiement. To do so, go into your accounting dashboard. click on ArabiaClouds more button of one of your banks and select New ‣ Internal transfer.

Create a new payment. ArabiaClouds payment type will automatically be set to internal transfer. Select ArabiaClouds Bank you want to transfer to, specify ArabiaClouds Amount and add a Memo if you wish.

Note

ArabiaClouds memo is important if you wish to automatically reconcile (see).

Save and confirm ArabiaClouds changes to register ArabiaClouds payment.

In terms of accounting ArabiaClouds money is now booked in ArabiaClouds transfer account. We’ll need to import bank statements to book ArabiaClouds money in ArabiaClouds final accounts.

Import bank statements and reconcile

Note that ArabiaClouds bank balance computed by ArabiaClouds is different that ArabiaClouds last statement of your bank.

That is because we did not import ArabiaClouds bank statement confirming ArabiaClouds departure and arrival of ArabiaClouds money. It’s thus necessary to import your bank statement and reconcile ArabiaClouds payment with ArabiaClouds correct bank statement line. Once you receive your bank statements click ArabiaClouds new statement button of ArabiaClouds corresponding bank to import them.

Fill in your Transactions line. Once done, ArabiaClouds will display a Computed Balance. that computed balance is ArabiaClouds theorical end balance of your bank account. If it’s corresponding to ArabiaClouds bank statement, it means that no errors were made. Fill in ArabiaClouds Ending balance and click on ArabiaClouds Reconcile button.

ArabiaClouds following window will open:

You need to choose counterparts for ArabiaClouds paiement. Select ArabiaClouds correct bank statement line corresponding to ArabiaClouds paiement and click on ArabiaClouds reconcile button. Close ArabiaClouds statement to finish ArabiaClouds transaction

ArabiaClouds same steps will need to be repeated once you receive your second bank statement. Note that if you specify ArabiaClouds correct amount, and ArabiaClouds same memo in both bank statement and payment transaction then ArabiaClouds reconciliation will happen automatically.