In Banking what is the difference between a Transfer and Add under Action? and how to reconcile a Banking transaction and the same transaction under Credit Card account?

@paul-gupta 

“Add” means you have not created the transaction in QuickBooks Online. “Add” is to basically record the new transaction to the register in QuickBooks.

“Transfer” means you make a transfer from one bank account to another bank account (or credit card account). It’s not for entering an income or expense account to the transaction.

In case the bank is downloading, Transfer type transaction to the Add section, you can switch the radio button to Record Transfer, that way you can see bank or credit card account. For example, let us say, you made a $100 credit card payment from your checking account. On your banking tab for your checking account, you record transfer to credit card account. On the Credit Card account (if it's also bank connected), you will see MATCH for that transaction. Just click Match and done. That's all.

For more details, you can refer to this helpful article.

Hope this helps!

Welcome to the Community, @paul-gupta.

Let me provide some information about the Transfer and Add button from the Banking page. And help you reconcile your Credit Card account.

The Transfer button means that you have the option to transfer the transaction to a different bank or credit card account. For example, if you want to record the transactions to a different account, you can select the appropriate bank account from the drop-down, then click Record transfer. I've attached a screenshot below for your visual reference.

While the Add button means adding your bank transactions to QuickBooks and this will go to your bank register. This way, you'll be able to reconcile your bank transactions.

Here's how to reconcile a credit card account:

1. Firstly, review your opening balance.
2. Start your reconciliation by going to the Gear icon, then select Reconcile under Tools.
3. If this is the first time you're reconciling, click Get Started.
4. Select the appropriate account from the Account drop-down.
5. Enter the Ending balance and Ending date of the statement.
6. Click Start reconciling once you're ready.

Here's an article you can read on for more details: Reconcile an Account in QuickBooks Online.

You might also want to check out these articles to learn more about downloaded banking transactions and reconciling:

• Assign, Categorize, Edit, and Add your Downloaded Banking Transactions.
• What is Reconciling?

Just hit the Reply button if you have additional questions about bank feed. The Community team and I are always here to help.

@Mark_R , I'm following this post for the "Transfer" activity. I use QB self-employed for my freelance writing business (just myself). My "Transfer" activity represents me transferring money to my savings (to set aside for taxes) and personal account (to pay myself). Is that the proper function/category/rule I should use for savings and paying myself?

Hi there, KindellCo.

Thank you for giving additional information, this will help me elaborate what you meant in recording transaction by paying yourself. In recording wages, you can choose your Account Type as Business Expense in the transactions page.

Also, about the category of your transaction you can choose Personal Withdrawal. I also suggest to confirm this with your accountant. This transaction is excluded from our calculations for estimated taxes or business expenses.

I added a screenshot for your reference.

Let me know if you need anything else. I'll be around the corner ready to help. Take care.

I'm new to Quickbooks and am trying to figure out how to handle transactions from Zelle or CashApp.  CashApp is being used to make payments and is linked to the bank account that is linked in QB, so is that considered a transfer or just adding the transaction and placing it under the correct category in the Chart of Accounts? CashApp is being used to pay vendors and to make purchases. The purchase is not coming directly from the checking account, however, the checking account is linked to CashApp.  

Hello, @itsmytime2020.

When you integrate your CashApp or Zelle with QuickBooks, it will automatically download your transactions. However, if you connect the bank account you linked in both of these apps with QuickBooks, it may cause duplicate tracking of your transactions.

Instead of using the transfer category, you can match the transactions downloaded from Zelle or Cash App with the downloaded transaction from your connected bank account. You'll be able to match the transactions in the For Review section. You can refer to How to add and match downloaded banking transactions article for the detailed instructions.

Also, since every business structure is unique, I'd suggest consulting with your accountant to determine the correct way to categorize the transactions. By following these steps, your deposits are already matched in your QBO company. To help get started with the online version, I'm including a link to our online tutorials: QuickBooks Online Video Tutorials.

Let me know if you have additional questions about matching your payment transactions. I'm always here to help.

How do I change an item with the action "transfer" to "add" instead?

Thanks for joining the thread, @Meg27,

To share more insights about this topic, what usually displays in the Bank Feeds comes from the command of the source bank. If the transaction is marked as Transfer in the Action column, and you want to add it to the register, it can be done in just a few clicks.

Follow the steps below:

1. Go to the Banking menu and tap the Banking tab.
2. Find the transfer you want to add.
   
3. Simply click the bank entry and choose the Categorize radio button to switch the label to Add. See this:
   
4. From there, click the Add option to add the entry directly to the register.

To give you more ideas and insights on how to work with the banking feature in QuickBooks, see the following resources:

• Banking in QBO
• Video Tutorials for QuickBooks Online

Update me anytime if you have any questions. I'll be right here if you need any help with the tasks in QBO. Have a lovely day!

If something was recorded as a transfer but should have been recorded as "add" income, how can I change that in Quickbooks.  I'm not sure if I should void the transfer and if it will remain in the register for me to then add it, or if the void loses the transaction entirely.  

I have already reconciled this transaction too, I'm not sure if that matters in this situation.

Thank you.

Thanks for becoming part of the Community, NL13.
 

You can delete the invalid transfer in your Chart of Accounts.
 

Here's how:

1. In the left navigation bar, go to Accounting, then Chart of Accounts.
2. Access your appropriate account using the View Register option.
3. Locate your transaction and click its record.
4. Find the checkbox column, then hit it until it's blank.
5. Select Save.
6. Open your transaction again and press Delete.
7. Choose Yes.

After it's deleted, you'll want to re-enter it using your + New button, then selecting either Bank deposit or Receive payment. Once it's entered correctly, make sure you reconcile it.
 

If this transaction's from a bank feed, I'd recommend unmatching, then matching it with its proper record.
 

If there's any additional questions, I'll be here to help. Have a lovely day!

If there is some transaction missing in the banking tab under banking what does that mean. Should I pass a journal entry for those transactions?

Hello there, @Pram. I'm here to provide you with information about missing transactions in the banking tab.

When you connect your online bank and credit card accounts, QuickBooks automatically downloads new transactions. If you’re not getting the latest entries, downloads may seem stuck.

To fix this, we can do a manual update. Let me show you how:

1. Proceed to the Banking menu or Transactions menu.
2. Select the Banking tab.
3. Click Update.
   
   

You'll want to check your bank's website to see if they are having issues or system maintenance. That will result in connections issues and transactions won't download which causes the missing entries on the banking page. Simply log in to their website and look for alerts or notifications. 

Additionally, there's no need to pass a journal entry for those missing transactions. 

May I ask also the name of your bank? I appreciate any extra information you can give, and it will help us further check for any investigation.

I'm also attaching these links to help manage your banking transactions in QuickBooks: 

•  Categorize and match online bank transactions
•  Monthly reconciliations.

Fill me in if you have other questions about handling banking entries in QuickBooks. I'll be happy to help you. Stay safe!