How to categorize a bank transfer from another bank account for the same business

Hi Laura!

Yes, you've explained everything in detail, and I appreciate your effort. I'm also glad to know that you like the online banking feature! I personally like it as well because it's a time-saver.

You do a great job of making transfers for the Transfer 1 situation. I have nothing to add to your process.

In the Transfer 2 situation, you can do the same thing, but you'll want to determine how much is for the transaction fee and the reimbursement, so you can do the split. If you really can't, you can deposit the whole amount as commission. Then, do a journal entry to move the sum of the transaction fee and the reimbursement to the Operating account later on, instead of doing transfers. Please have an accountant check your entries.

You can check the Profit and Loss and Balance Sheet reports after.

Let me know if you need more help with your bank transactions. You can comment anytime. We're just around 24/7.

So I have to split the deposit and specify each income account at the same time, ok. What if the gross commission is a transfer from the Operating account which includes these "expenses to the agent" that are income to the brokerage, this is the 2nd transfer I'm trying to figure out.

If I can't split this income at the deposit and instead create a journal entry for each "transfer" to categorize each item, what do I do with the transfers coming from the Commission Account?

Thank you for getting back to us here on the Community page, @LMO88.

If you'll be creating a journal entry to categorize each item accordingly, you can delete the transfer/s recorded from the Commission Account to avoid duplicated records.

1. Locate the transfer transaction from the Search field.
2. Click on Advanced Search.
3. Select Transfer beside Search then hit the search button beside Add Filter.
4. Look for the transaction, then click it to open.
5. Tap Delete from the More button to fully remove it.

For more information about creating transfers or journal entry in QuickBooks Online, check out these articles:

• Create a journal entry in QuickBooks Online
• Transfer funds between accounts

Keep in touch with me if you still need more help with this. I'll be here. Have a good day!

Hi Angelyn, if I delete this transfer from the Commission Account. How will I be able to reconcile this account? 

Thanks for getting back to this thread, @LMO88.

You're can still reconcile this account in a usual process. Since you're creating a journal entry, we need to delete the Transfer that you made. This is to make sure that there aren't any duplicate transaction when you reconcile the account.

Also, deleting it will not affect the entire reconciliation process. The journal entry that was created will replace the Transfer, so the amounts are still correct.

Here are the steps on how to record journal entries in QuickBooks Online:

1. Click + New.
2. Select Journal entry. 
3. Fill out the fields to create your journal entry.
4. Select Save and new or Save and close.

I also recommend reaching to your accountant for further advice on what entries you should use to properly record the payment.

In addition, you can run the Account QuickReport to review your account in QuickBooks. This way, we can make sure that all of your transactions are accurate before reconciling the account. Just go the Accounting menu and select Chart of Accounts. Then, click the account's drop-down arrow under the ACTION column and select Run report.

Don't hesitate to tag my name in the comment section below if you have other concerns or questions. I'm always ready to help.