Bank Transfers by check

Hello there, @lpenney18,

A check written in QuickBooks are shown as expenditures in the Profit and Loss report when an Expense Account is used. This is the same when a deposit is using an Income Account on its line item.

There isn't a direct way to clear this information in the P&L report other than deleting or changing the accounts used to something else. If in case you're not confident doing that, checking with an accounting professional for guidance is the best resort.

I also want to understand this better. When you said they aren't income or expense, what are these entries for? How is it recorded in real life or in the bank statement? Was it just a plain transfer of funds between Bank 1 and Bank 2 or is it way more complicated than that? I need to confirm this so I can guide you on how to properly account this in the program.

For now, the proper way of recording a transfer is going to the Banking tab and selecting Transfer Funds. The Transfer Funds From option will help you select the balance sheet account that you want to take money out of. The current balance of this account (before the transfer) appears in Ending Balance. The Transfer Funds To field is where you'd like to put money into.

I'll be waiting for your response on this as I want to ensure you're all set. Message me again in the comments. Have a good one.

Since you wrote a check to effect the transfer, a Transfer type transaction isn't really appropriate.

Instead, record a check as you did, and in the detail area of the check enter the other bank account instead of an expense.  And then delete the unneeded deposit.

Then you'll have one transaction that decreases one bank account and increases the other, without impacting your P&L, and which reflects what you did in the real world.

I have a similar situation. Moving money from Bank A to B and had to write a check to deposit into bank B. 

We would like this to show as a transfer vs hitting an expense account and then finding an account to deposit amount into. Check has been written and we picked an account for that to hit. IS there a way to change this to show as transfer?

Hey there, @35351.

Since you have a similar concern above, I'd recommend following the recommendation that was shared by BigRedConsulting. 

Once you wrote a check, you have to record it by writing a check in QuickBooks. This way, it will be recorded as what you did in the actual world. 

In addition, changing this transaction type from check to transfer is unavailable in the program. 

If you really want to record it as Transfer, we have to delete the check and recreate it as Transfer. Just open the transaction and select the Edit menu, then Delete Bill/Bill Pmt-Check. 

Once done, follow the steps that were shared by my colleague Jen_D record it as Transfer.

You can also seek out your accountant for further guidance in handling this transaction in QuickBooks. 

That should do it! Should you have other questions about managing your bank transactions in QuickBooks, feel free to leave a post below. I'm always here to help.

I have this same question and I don't see a clear answer regarding what do you do with the check as far as booking it.

I'm here to share some insights about what to do with your checks in QuickBooks, planeguy.

If the transaction is recorded directly as a transfer of funds from one bank to another, you can manually add it as a check. But, instead of using an expense, I'd suggest choosing a bank account. Then delete the deposit. After that, the transaction decreases, then the other increases.

In case you'll want to record the check as a transfer, you'll have to delete the transaction and then recreate it. I'll show you how to create a transfer in QuickBooks:

1. Go to the Banking tab and then select Transfer Funds. 
2. On the Transfer From button, select the account you want to take money out of.
3. On the Transfer Funds To field, choose the account you want to put the money in.
4. Enter the other necessary details.
5. Once done, click on Save and close.

However, if the transaction has been reconciled, I'd recommend consulting an accountant to prevent messing up your books. In case you don't have any, visit our Find an Account website to have one.

Additionally, I've included these articles that'll help you learn more about managing your checks in QuickBooks.

• Print Checks
• Memorize a Check
• Print the Check Register

Feel free to comment down below if you have any other concerns or questions about managing checks and other QuickBooks transactions. I'm always glad to help in any way I can. 

I have a similar issue as the rest of the comments above, but actually deposited this check with others that went to bank B.  I can't "delete" the deposit otherwise my other payments would not post.  I can't delete the check out of the deposit because it wouldn't match.  Please help me fix. 

Thanks

Olivia

Let me help you sort this out, olihertz.

To fix this, I'd suggest unlinking the payment to your downloaded transactions. This way, you'll be able to delete the check and post other payments.

You can get more details about matching your transactions in QuickBooks Desktop: Download Bank Feed transactions in QuickBooks Desktop.

Additionally, you can bookmark this link: Resource Hub. This will provide you with resources and videos about managing your QuickBooks Desktop account, income, expenses, inventory, and running reports.

If you have any other questions or need anything else in QuickBooks, let me know in the comment below. I'll be more than happy to help you in anyways I can. Have a lovely day!

I have a similar question.  I wrote a check from one bank to another to do a transfer.  The first bank shows the decrease, and I used the second bank as the payee, but the second bank GL account does show the transaction. How do I show the deposit into the receiving account in QuickBooks online.

Hi there, @Llmiller246. 

Thanks for sharing the details of your concern. Let me answer your bank transfer quarries in QuickBooks Desktop (QBDT). 

Based on the steps that you've shared, you used the second bank as a payee when recording the check. Doing this will only affect the account where the money is taken from. Since a payee (vendor) isn't an actual bank account, therefore it won't reflect on your General Ledger. 

If you want to use a check and affect both banks, you'll have to select the second bank in the Expenses tab. Simply open again the check and edit its details, then save the transaction. 

Moreover, you can use record the transfer by going to the Banking tab and selecting Transfer Funds. Then, choose the correct banks from each drop-down list and the transferred amounts. When you're done select Save and Close. This will transaction will now affect both banks in your Chart of Accounts and reports. 

I've also included these articles for additional reference in managing your checks in QuickBooks. 

• Memorize a Check
• Print Checks
• Print the Check Register

That should do it! Should you have other questions about managing your bank transactions in QuickBooks, feel free to leave a post below. I'm always here to help.

I am kind of having a similar issue.  I wrote two transfer checks in April and they weren't deposited until September.  I set up a Vendor to write the transfer checks.  I put in a bill and use the Bank B as the Expense and paid it with Bank A.  When I do my bank reconciliation for April in order to reconcile to the GL I had to put the amount of the checks in Deposits in Transit and check them off in the reconiciliation.  So in September when they were finally deposited I matched to the Bill and removed them from deposits in transit but for some reason the GL is still off by these checks.  What is causing this issue?  How do I fix it?

Let me chime in and clarify things for you, @deannarobinson.

In QuickBooks Desktop, when creating a bill, automatic bank B will increase even if bank A does not pay it.

We don't need to create a deposit for bank B because it will show as a duplicate. We just have to pay a bill by September using bank A.

To fix this, locate the deposits in transit to delete them. You can generate a report for this. Before doing so, I suggest consulting an accountant for further insights to ensure that your book is accurate.

Additionally, let me share these articles you can utilize to help manage your funds in QuickBooks:

• Transfer funds between accounts
• Record and make bank deposits in QuickBooks Desktop

Keep me posted if you have further concerns with transferring checks. I'll be happy to help you always. Stay safe!

If I don't include them in deposits in transit in my bank balance when I reconcile then the bank balance won't match the GL Balance.  I haven't done an entry in Quickbooks or anything for the deposits in transit it's just included in the balance I use to reconcile.  I just add it to the bank balance when I reconcile and I carried it forward in the bank balance until September so I don't understand why when the checks were deposited and I removed the deposits in transit from the bank balance the GL is off.  It makes no logical sense to me.