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How to Record an ATM Withdrawal to Make an Opening Deposit at a New Bank

I'm a little unclear as to how to record an ATM withdrawal from our old bank to make an opening deposit at our new bank. I was going to record it as a transfer and make a note in the "Memo" field that it was an ATM transaction. However, the problem I'm running into is that I withdrew $500 from our old checking account and then deposited $100 each into the 5 new accounts that we opened at the new bank. What would be the correct way to record this transfer? Right now the deposits are categorized as "Opening Balance Equity" and the withdrawal as an ATM Withdrawal (expense), but expense is not accurate and is throwing off our books.

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Best answer 09-12-2019

Accepted Solutions
QuickBooks Team

Re: How to Record an ATM Withdrawal to Make an Opening Deposit at a New Bank

Welcome aboard to QuickBooks Community, @ElleP.

 

You can use bank transfer to record the ATM withdrawal in QBO. Since the feature only allows transferring of funds between two accounts, create 5 different transactions to deposit the exact money taken out from the old to the new ones. 

 

Here's how:

  1. From the Plus icon, select Transfer.
  2. Pick the old account on the Transfer Funds From drop-down and choose one of the new accounts on the Transfer Funds to drop-down.
  3. Enter the amount in the Transfer Amount box.
  4. Set the date of the transfer or the actual withdrawal date.
  5. In the Memo field, enter a description.
  6. Hit Save and new to make another transfer. 

Transfer 1.PNG Transfer 2.PNG

 

Follow the same steps to move the rest of the amount to create an opening balance for the other accounts. Check out this article for more information: Transfer Funds.

 

For future reference, I'm adding this article that talks about how opening balance works: Opening Balance in QuickBooks.

 

Should you have any questions or need further assistance, let me know. I'll be glad to help. Wishing you continued success!

4 Comments
QuickBooks Team

Re: How to Record an ATM Withdrawal to Make an Opening Deposit at a New Bank

Welcome aboard to QuickBooks Community, @ElleP.

 

You can use bank transfer to record the ATM withdrawal in QBO. Since the feature only allows transferring of funds between two accounts, create 5 different transactions to deposit the exact money taken out from the old to the new ones. 

 

Here's how:

  1. From the Plus icon, select Transfer.
  2. Pick the old account on the Transfer Funds From drop-down and choose one of the new accounts on the Transfer Funds to drop-down.
  3. Enter the amount in the Transfer Amount box.
  4. Set the date of the transfer or the actual withdrawal date.
  5. In the Memo field, enter a description.
  6. Hit Save and new to make another transfer. 

Transfer 1.PNG Transfer 2.PNG

 

Follow the same steps to move the rest of the amount to create an opening balance for the other accounts. Check out this article for more information: Transfer Funds.

 

For future reference, I'm adding this article that talks about how opening balance works: Opening Balance in QuickBooks.

 

Should you have any questions or need further assistance, let me know. I'll be glad to help. Wishing you continued success!

Not applicable

Re: How to Record an ATM Withdrawal to Make an Opening Deposit at a New Bank

Thanks, @KhimG! So I assume I should delete the $500 ATM withdrawal that was automatically imported into Quickbooks and then create 5 separate $100 transfers? If these are then marked as transfers into the new accounts then how should I account for the opening balance for each account?

Not applicable

Re: How to Record an ATM Withdrawal to Make an Opening Deposit at a New Bank

@KhimG – The issue I'm having now when I try your solution is that my opening balance is thrown off because I no longer have an "Opening Balance Equity" entry. Is there a way to change the opening balance without adding an opening balance entry?

QuickBooks Team

Re: How to Record an ATM Withdrawal to Make an Opening Deposit at a New Bank

Thanks for the prompt response, @ElleP.


Yes, you have to delete the ATM withdrawal that was imported in QuickBooks. Then, create one bank transfer for $500 to Opening Balance Equity using the old account and from there, make 5 different transfers for $100 each going to the new accounts.


Here are the detailed steps:

  1. Go to the Plus icon and select Transfer.
  2. Pick the old account on the Transfer Funds From drop-down and choose Opening Balance Equity on the Transfer Funds to drop-down.
  3. Enter 500 in the Transfer Amount box.
  4. Set the date to the actual withdrawal date.
  5. Enter a description for the transactions in the Memo field.
  6. Hit Save and New.

Transfer 1.PNG Transfer 2.PNG

 

Once done, follow the same steps except choose Opening Balance Equity on the Transfer Funds From drop-down and the individual new accounts on the Transfer Funds to field. The amount of each transfer should be $100.

 

Transfer new account.PNG


Please refer to the same articles I shared above for your reference.


Leave a comment if you need further assistance. I’m here to keep helping. Have a good one!
 

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