Move money from one account to another

roguewarrior · ‎November 14, 2024

I have read many threads, and this question should be straightforward, but I think it will confuse folks - I hope I am wrong.

First, I am using QuickBooks Desktop 2020 on Windows.

Next, I have many accounts in my Chart/List of accounts (Ctrl-A), they are all virtual accounts (outside of two REAL bank accounts).

I volunteer for a Nonprofit and donations come in from people and they are flagged with one of the accounts. I do not use CLASSES (I am not even sure what that is) nor do I use tags. All I do is simply, choose the account for the donation based on the desire of the donor.

Say, the donor wishes the money to be flagged under general donation - so then I choose the "General" Account and save the donation. The donation is then deposited into an ACTUAL bank account and we are all good.

Same for things like donations for the Building Fund account and other such "accounts".

So, my question today is how do I move money from one "account" to another? So, if I want to move money from the building fund Account to the General Account - what mechanism do I use? Normally, when I transfer money from ONE BANK to another Bank I use the transfer function under banking. However, these two accounts are NOT bank accounts, they are virtual accounts.

So, again, how do I move money from one virtual account (accounts in the chart/list of accounts) to another virtual account? Of course, this is done after getting approval from each of the donors. Thanks!

Rainflurry · ‎November 14, 2024

@roguewarrior

When you receive the donation, how do you record it? With a bank deposit? Or do you use an invoice/sales receipt?

If you record it using a bank deposit, then, to move the funds from, say, the General Fund to the Building Fund, create a journal entry (Company > Make General Journal Entries). Debit the account that you want to move the funds from and credit the account you want to move the funds to. So, in this example, let's say the donation was $100 and it's sitting in the General Fund. Make a journal entry and debit the General Fund for $100 and credit the Building Fund for $100. Make sure to select the donor's name in the Name column on the first line of the journal entry. That will allow the journal entry to show under the donor's account.

If you use invoices or sales receipts to record donations, then create a new invoice or sales receipt (doesn't matter which). Enter the item that is associated with the account you want to move the funds to on line 1 as a positive amount. On line 2, enter the item you want to move the funds from as a negative amount. That creates a $0 invoice/sales receipt and moves the funds. IMO, it's best to use a sales receipt or invoice but if you don't track your donations using items, use the journal entry method.

View solution in original post

Rainflurry · ‎November 14, 2024

@roguewarrior

When you receive the donation, how do you record it? With a bank deposit? Or do you use an invoice/sales receipt?

If you record it using a bank deposit, then, to move the funds from, say, the General Fund to the Building Fund, create a journal entry (Company > Make General Journal Entries). Debit the account that you want to move the funds from and credit the account you want to move the funds to. So, in this example, let's say the donation was $100 and it's sitting in the General Fund. Make a journal entry and debit the General Fund for $100 and credit the Building Fund for $100. Make sure to select the donor's name in the Name column on the first line of the journal entry. That will allow the journal entry to show under the donor's account.

If you use invoices or sales receipts to record donations, then create a new invoice or sales receipt (doesn't matter which). Enter the item that is associated with the account you want to move the funds to on line 1 as a positive amount. On line 2, enter the item you want to move the funds from as a negative amount. That creates a $0 invoice/sales receipt and moves the funds. IMO, it's best to use a sales receipt or invoice but if you don't track your donations using items, use the journal entry method.

roguewarrior · ‎November 14, 2024

Thank you so much @Rainflurry! That is exactly what I needed! I really want to thank you for sharing your knowledge. I use invoices and Sales Receipts for everything I enter, it is annoying but very easy to track. So, I entered a zero-sum sales receipt and I am done. GENIUS!!

JessT · ‎November 19, 2024

Hi Rainflurry!

I just wanted to take a moment to give you some well-deserved praise for the assistance you provided to the poster about moving funds in QBDT. Your explanation of the different methods—using journal entries versus invoices and sales receipts—was incredibly insightful. It’s clear that your advice helped them find an effective solution.

Your willingness to share your knowledge and your clear guidance really made a difference. Thank you for being such a valuable resource for the community!

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Move money from one account to another