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Erica B
Level 1

Transfers

Hi, we have two checking accounts in QBO. I made a transfer from checking account A to checking account B. I can match up the transfer ok, but I need to categorize the transfer to an other liability account. When I try to do this, it shows a duplicate transaction in account B (one shows the transfer and the other shows a deposit, even though I put in the correct liability account). How do I account for the transfer from one account to the other and still have the funds recorded in the liability account?

7 Comments 7
IamjuViel
QuickBooks Team

Transfers

I thank you for the complete details that you've shared, @Erica B.

 

Let me share some information to ensure that your transfer transactions are accurately tracked.

 

Since you've added both checking accounts in QuickBooks, you'll see two registers. In Checking account A, you're correct in tagging it as Transfer

 

Once the transaction is recorded, you can categorize it directly as a deposit in the receiving account (Checking Account B) and assign it to a liability account.

 

By doing this, you'll avoid getting duplicate records in your checking register.

 

Swing by here if you have other questions about managing your downloaded bank transactions. I'm always here to help.

Erica B
Level 1

Transfers

Hi, thank you for your response! Unfortunately that is not working when I do it on my end. When I record the transfer from A to B, that works fine. But when I go to B, it wants me to match the transaction. If I match it, it shows up as a transfer in B but it doesn't give me an option to categorize and assign it to a liability account. If I change it from match to add and categorize it there, that is when it shows up in my B register twice (once as a deposit and once as a positive transfer). 

As an alternative, I did the transfer and match, then tried to do a journal entry to credit the liability account and debit checking account B, but it's showing as a deposit in checking account B instead of a payment, so the money is recorded twice as a credit.

Hope this makes sense and there is something I'm missing that can be easily done to make this work.

Thanks!

 

MaryJoyD
QuickBooks Team

Transfers

It's our pleasure to help, @Erica B.

 

QuickBooks Online (QBO) is double-entry bookkeeping. This means that a transaction that you've entered in QBO can't affect 3 accounts. 

 

To have that bank transfer affect your liability account, make sure to create a corresponding and opposite entry to a different account. 

 

I also suggest reaching an accountant to get advised what account to use when categorizing the transactions.

 

Check these articles for more information:

I'm always here to provide help and answer any questions that you may have. Have a great rest of the day!

Erica B
Level 1

Transfers

Hi MaryJoyD,

 

I believe that is what I'm confused about - creating a corresponding and opposite entry to a different account. I have recorded the transfer from checking account A to checking account B. But now in account B, I need to apply that transfer to sales. Let me explain my example:

A deposit for rent was submitted to the wrong checking account (A). So we transferred the money from A to checking account B which is where the money should have been deposited to. Now that the transfer is showing in checking account B, I need to categorize that money to one of the rental units so when I am running reports I can see that money was applied as sales for that unit. What transaction type should I do here? I tried to do a journal entry debiting checking account B and applying credit to the appropriate unit, which does show the funds applied to the correct unit, but then it shows that money as a deposit in checking account B instead of a payment so my Quickbooks balance is incorrect. 

Erica B
Level 1

Transfers

Hi again,

Any other suggestions on how to handle this issue?

AmyB71
Level 1

Transfers

I have a similar issue.  Did you find a resolution by chance?

Ethel_A
QuickBooks Team

Transfers

Welcome to the Community, AmyB71.

 

I appreciate you reaching out to us about your concern with transferring a transaction from one account to another. Let me share some insights about it.

 

You can check the information provided by my peers above. If it doesn't work, allow me to share another way of doing it.

 

Here's how:

 

  1. You can undo what you have matched, added, or transferred from the banking page.
  2. Create a bank deposit affecting the bank Band income account. Or pay the invoice deposit to Undeposited funds. Create a bank deposit associating with the invoice payment.
  3. Create a check or expense affecting bank A and equity account. Add a note or description transfer to a different account.
  4. Match the transactions that fit the amounts on the Banking page.

Here is where you can check on how to transfer funds between accounts

 

You may also check on how to transfer funds from a bank to a credit card account.

 

Please let me know how it goes or if I can be of more help with transferring funds from one account to another. I’m always here to help. Take care and enjoy the rest of your day!

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