How to set transfers so they don't show as income / expenses?
I have transfers between accounts (some being owner draws), I don't want to show as income or expenses. I haven't been able to figure this out and I'd rather not just delete them. Would anyone know the best way to set this up?
Re: How to set transfers so they don't show as income / expenses?
Transferring funds between asset (bank) accounts and/or equity accounts (draw/contributions) are just transfers. It is impossible for a transaction that affects only two bank or other asset accounts to have any effect on income or expense - even if you use Expense to create the transfer. Only transactions that have an income or expense account as detail can affect I/E
If your transactions are hitting I/E then something in the transactions is wrong. Can you post a screenshot of a funds transfer that is posting to Income or Expense in your company file?
Number ONE thing to keep in mind> bank feeds can mess you up. Deposits to banking are NOT income. Withdrawals are NOT expenses. The income and expense is in the behind the scenes activity and has to be recorded as sales receipts, invoices with payments, or checks and expenses.