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The following instructions are useful in dealing with reconciling bank transfers between different Bank accounts.
1. Setting up a GL account for Funds in Transit or Transit Account (if required)
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| Receiving Bank | |
|---|---|
| Debit | Credit |
Bank 100 EUR | Funds in Transit 100 EUR |
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Transfer of funds with foreign currencies
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- Complete steps 1 and 2 above.
- By default NetSuite will set the exchange rate on the journals created to the daily rate that was applicable on the day the transaction took place, resulting in an imbalance on the Funds in Transit account
- Once both accounts have been reconciled, the exchange rate needs to be manually changed on either of the transactions to balance the amounts on the Funds in Transit account, or the exchange rate difference needs to be posted to a Foreign Exchange expense account manually.
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| Debit | Credit |
|---|---|
Forex Gain/Loss 5 EUR | Funds in Transit 5 EUR |
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Inter-company transfers
- For inter-company transactions you will need to setup a Inter-company clearing account rather than a Funds in Transit GL.
- Otherwise it behaves the same as in the instructions above
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