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Transfer Money between Parent and Sub Checking Accounts

I have an operating checking account.  I have created a sub-account to track specific funds.  I had a deposit hit the parent account and when I use a journal entry to debit parent account and credit sub account, the sub account gets a negative balance.  If I use a journal entry to debit sub account and credit parent account, the sub account has a positive balance, but the parent account is now inflated.  How do I get the funds from the parent account and into the sub account?

1 Comment 1

Transfer Money between Parent and Sub Checking Accounts

Hello elizabethsteffen,


When using sub-accounts, any amount added to the sub-account will also increase the parent account's balance. The second journal entry you've created should be the correct one: debit the sub-account and credit the parent account.


The reason why the parent account inflated is the first journal entry. I'd recommend deleting it to correct the balances.

  1. Locate and open the first journal entry you've created.
  2. Click More at the bottom and select Delete.
  3. Click Yes to confirm the action.

Aside from creating journal entries, you can also use the Transfer feature. This'll allow you to move amounts with ease: Transfer funds between accounts.


Again, the amounts from the sub-account will always reflect on the parent account balance.


Let me know how this goes so we can help you more. Have a great day!

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