Transfers in Transit- Bank Reconciliation

Katie Lindemann

I am doing a bank reconciliation for one bank account. Journal entries are made at the end of the month to record activity in this bank account being transferred to another. The journal entry is made and posted to the GL. This amount however does not clear the bank until the next month. What adjustments should be made to show that there is a transfer in transit on the bank reconciliation? Are there any settings that need to be changed?

Sharelle Buyer

@Katie Lindemann No adjustment is necessary. You leave the transfer unchecked and it will remain on your bank reconciliation as an “open” item.