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How do I notate a bank transfer as profit for goods sold?

I transfer weekly sales profits from one corporate account to the other.  The transfer appears in the account correctly but I would like it to register as income for the P&L.  Everything I've tried makes the funds appear twice in my balance.  I'd like to option to note a bank transfer as income.Thanks in advance!

2 REPLIES
Established Community Backer ***

Re: How do I notate a bank transfer as profit for goods sold?

transfer only works within one QB file


Each company is required to have its own accounting file, if you have two companies in one file that is a problem, especially in the event of an audit, federal, state, sales tax, workers comp, etc etc. That is called commingling, and is a big do not do to the feds (and others)

 

Within QB, a transfer is just that, moving money you have already accounted from one place to another, so no you can not make it income again.

two companies, two QBO subscriptions

Established Community Backer ***

Re: How do I notate a bank transfer as profit for goods sold?

If this is two different Corporations, It seems you are moving Funds; not Profit. You seem to have excess funds in one place and consider the other place needs to have it.

 

Most likely, you have Equity Out, as a draw or distribution or dividend; this depends on the entity sending the funds and the reason the receiving entity has the right to take these funds from the sending entity.

 

And the Receiving entity has a Deposit. That deposit is whatever entitles them to take money from that other entity. This might be Equity or Asset In, because it isn't their Income if it isn't their business activity.

 

You never move Profit. Profit is a Math Figure.

 

If it is just your own Funds, such as between checking and savings, yes, that is Transfer. Not Income or Profit. It's just Money; no business activity just also happened. You didn't buy or sell anything, just to Move these funds.