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Level 2

Reclassifying a Transfer to a Expense in QuickBooks Online

Hi 

I am  a newbie at quickbooks and in general accounting for that matter. I understand that you label as transfer if you are transferring between business accounts. But I do not have a business credit card, so I need to put it into my personal Debit or Credit Card. At that time do I do as an Expense, is that right?

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QuickBooks Team

Reclassifying a Transfer to a Expense in QuickBooks Online

Hello there, @newtoaccounting.

 

Thank you for joining this thread and choosing QuickBooks as your accounting partner. I can help you enter your transactions in QuickBooks Online (QBO).

 

Yes, you're correct. You can add them as an expense and choose your personal Debit or Credit Card on the Account field. I'll be happy to guide you through the steps:

  1. Click the Plus icon.
  2. Choose Expense.
  3. Select a payee.
  4. Choose the Bank/Credit account.
  5. Enter the important details.
  6. Click Save.

For your reference, you can also check this article: How to enter, edit, or delete expenses.

 

That's it. Click the "Reply" button if you have follow up questions about expenses. I'm always here to help you out. Have a wonderful day!

Highlighted
Level 2

Reclassifying a Transfer to a Expense in QuickBooks Online

Thank You for quick reply . I will contact if I have more questions, which I am pretty sure will have more 

Highlighted
QuickBooks Team

Reclassifying a Transfer to a Expense in QuickBooks Online

Welcome back to the Online Community, new accounting.

 

I appreciate you letting us know that my colleague @HoneyLynn_G responded to your question. I'll let her know about your comment.

 

For a quick overview on how QBO can help you efficiently manage your business, I’m adding a link to our online tutorials: QuickBooks Tutorials.

 

You can also visit the QuickBooks Blog site to learn the latest news about the product and get some tips on how to run your business seamlessly.

 

Please know that the Community is a one-stop shop for help about QuickBooks, and you can post anytime if you have questions. Wishing you continued success.

 

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Level 2

Reclassifying a Transfer to a Expense in QuickBooks Online

I wanted to know how to enter an NSF transaction. So it was a preauthorized payment and due to insufficient fund the item came returned and charged NSF Fee and  the payment was cleared in couple of days . HOw do I mark all these lines when adding in quickbooks?  I saw articleas when vendors check is not cleaared. here my check/pre auth is not cleared. Should I submit this as new question?

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Level 2

Reclassifying a Transfer to a Expense in QuickBooks Online

 I have a question regarding Transfer between business accounts. What I did (may be wrong) Under bank account 1 under banking I added the transaction as transfer to bank account 2 the amount was sent from 1-2. Same thing I added the transaction as transferred from  acct 1. and reconciled both the account. But I see that there are these transactions are still sitting under banking. 

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QuickBooks Team

Reclassifying a Transfer to a Expense in QuickBooks Online

I got that, newtoaccounting.


You’ll want to leave the check as is then record the bank fee (follow scenario 1).


With regards to the bank transfer, you did it correctly. While for the other transactions still in the Banking page, they are your downloaded transactions to be added, matched or excluded.


Here is an article that would help you manage downloaded bank transactions.

 

Reach out to us if you have further questions. Have a good one!

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Level 2

Reclassifying a Transfer to a Expense in QuickBooks Online

The cheers need to go to lynda  and anyone reading this post should be direct to the fact that he was trying to a 'non-accounting' procedure.  That is having transfers show up on PNL's.   The user should be directed to entering the transactions as expense categorized items, in the credit card account then making a payment this payment will show up as a Balance Sheet Reduction.

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Level 1

Reclassifying a Transfer to a Expense in QuickBooks Online

How do you do this in bulk? If 20 or so items came in on the Bank page from American Express and we’re all labeled as transfer. How can you change them in bulk to add

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QuickBooks Team

Reclassifying a Transfer to a Expense in QuickBooks Online

Hello there, @Shb1.


Thanks for reaching out to the Community. I’m here to share some information about changing the category to expense by batch in QuickBooks Online. 


At this time, the option to modify the transferred transactions in batches is currently unavailable.  You have to edit them one at a time and move the radio button from Transfer to Add in order to see the Select Category box. 


Once done and the Action column shows Add, click the Batch actions drop-down and choose Accept Selected. This should add the transactions to your register in QuickBooks.


For more information, take a look at this article: Assign, categorize, edit, and add your downloaded banking transactions.


Please check out the screenshots shared above for visual reference.  


That should do it. Reach out to me if you have any other concerns, I’m always here to assist you. Wishing you and your business continued success!
 

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Level 2

Reclassifying a Transfer to a Expense in QuickBooks Online

--- Deleted Content - answered wrong post
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Level 2

Reclassifying a Transfer to a Expense in QuickBooks Online

 
Highlighted
QuickBooks Team

Reclassifying a Transfer to a Expense in QuickBooks Online

Thanks for joining this thread, @Allen69.


Let’s straightened out your records by classifying the transactions to the correct category.


If the reconciled data are bank transfers, delete and recreate them as expenses in QuickBooks. Before proceeding, keep a copy of the transactions by printing the list or exporting them in Excel.


Just select the Printer icon in the upper right hand or click on the Export icon. If you already have the information handy, let’s go ahead and remove the transfers.
rest4.png


Here’s how:

 

  1. From the left panel, click on the Accounting menu and select Chart of Accounts.
    rest.png
  2. Choose the bank where the transactions are recorded, then hit the View register link to open the list.
    rest1.png
  3. Open each transfer one at a time and hit the Delete menu to remove it.
    rest2.png

Next, go to the Expenses page to record the data. Once done, you can start reconciling the account.

 

However, if these are expenses, go to the Expense Transactions window to re-categorize them.

 

  1. On the left panel, select  Expenses.
  2. Mark the boxes of the expenses you're working and click the Batch Actions drop down list.
  3. Pick Categorize selected.
  4. Choose the category you want, then hit Apply.
  5. Then reconcile the transactions.
    rest5.png rest6.png

Stay in touch if you have questions while working in QBO. I'm here ready to help you. Wishing you the best.

 

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Level 2

Reclassifying a Transfer to a Expense in QuickBooks Online

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Level 1

Reclassifying a Transfer to a Expense in QuickBooks Online

Hi there,

This is about reclassifying an expense as a transfer, but should work on the same principle. I'm not sure how I managed this, but when I went in and hit Undo for the expenses that should have been classified as transfers between my accounts, QBO counted them twice after I reclassified them and reaccepted them.  Now it shows my QBO balances as higher than what is actually in each actual bank account. I don't know now which to delete, the transfer I did as a classification, which in my mind seems to be the correct way to classify a transfer between my operating account and my estimated taxes holding account, or the original bank upload that I originally misclassified. Why did it keep that? Maybe I'm wrong and transferring money between accounts would classify as an expense in the operating account, but it doesn't seem like it should do that? 

Lorie

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Moderator

Reclassifying a Transfer to a Expense in QuickBooks Online

Thanks for joining this conversation, @LGR.

 

After undoing the transaction that was added as an expense, then reclassifying it as transfer, the original bank upload shouldn't be there or counted twice.

 

As an initial troubleshooting step, try logging into your QuickBooks Online (QBO) account using a private browser (incognito). There are times that the browser is full of frequently accessed page resources, causing some unusual responses.

 

Here's how:

 

  • Press Ctrl + Shift + N (Google Chrome).
  • Ctrl + Shift + P (Firefox or Internet Explorer).
  • Control + Option + P (Safari).

 

Once signed in, go back to the Banking page to double-check. I'll be adding this article for future reference: Transfer funds between accounts.

 

If it works, return to your default browser and perform a clear cache. Every so often the cache becomes overwhelmed with older data which can potentially cause viewing and performance issues. Clearing it will refresh the system, and you'll be able to work with a clean slate. However, if the same thing happens, try using other supported browsers.

 

Please let me know in the comments if you have any other issues or concerns. I want to make sure everything is taken care of for you. Have a good one!

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Level 1

Reclassifying a Transfer to a Expense in QuickBooks Online

See if this works: Go to Banking and highlight the appropriate credit card. Then click Reviewed to bring up the transaction erroneously accepted as a transfer. Now you'll need to click For Review since the transfer now needs to be reviewed again. Record Transfer should be pre-selected. Opt out of that by clicking Add. Now your categories should include the expense accounts and you can go about business as usual. Hope this helps.

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Level 1

Reclassifying a Transfer to a Expense in QuickBooks Online

Hello. So I'm reading through all these and while helpful, I am not sure if these solutions will work for me. I recently took over the books, and I have the same transfer/expense problem which is really messing up the books. While I would like to try the delete transaction and re-creating it solution, the books have never been reconciled.... ever. So it then starts me off with an incorrect balance, and lists the transactions all the way up to 2014!! is there a way I can run a reconciliation without having to start from the very beginning? 

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QuickBooks Team

Reclassifying a Transfer to a Expense in QuickBooks Online

Hello, Kenharb.

 

Thanks for joining the Community.

 

There's no way to reconciling without having start from the oldest bank statement, you'll need to start from the beginning of the old bank statement, and reconcile month-by-month up to the most recent statement. With this, the further back you start, the more likely you are uncovering incorrect balances and discrepancies. 

 

If you're reconciling since 2014, you can start digging the month in which you have challenges. You can refer to this article on fixing balances in QuickBooks Online:

 

You can always get back to us here in the Community if you have other questions. I'm just a few clicks away.

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Level 1

Reclassifying a Transfer to a Expense in QuickBooks Online

My problem is the opposite of the previous post.  I classified payments made to my credit card from my checking account as "expenses".  I want to change them to transfers.  The problem is they've been reviewed already and there does not seem to be an easy way to undo the mistake.

Do I need to delete the transaction and start over?  I cannot reconcile the statements because of this.  Please advise.  Thank you.

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QuickBooks Team

Reclassifying a Transfer to a Expense in QuickBooks Online

Thank you for posting, @Tncklas

 

At this time, the feature to update the transaction type of the downloaded transaction is still unavailable. What you can do is to delete the bank transaction and enter or clear the check in QuickBooks manually.

 

Once added, you can now clear the check from the register. Let me show you how to do that:

  1. Click the Gear icon and go to your Chart of Accounts.
  2. Find the account you want to review.
  3. From the Action column, click Account history.
  4. From the reconcile status column (indicated by a checkmark), click the box multiple times to update the codes on the transaction:
    • C - Cleared
    • - Reconciled
    • Blank - Not cleared or reconciled
  5. Click Save.

Also, QuickBooks uses the Transfer category for transactions where you're making a credit card payment. They're considered "transfers," to exclude them from your calculations for estimated taxes or business expenses.

 

To know more about recording credit card transactions in QBO, please refer to this article: How to record credit card payments.

 

I'm always here if you need further assistance or have any more questions with QuickBooks. Have a good one!

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Level 1

Reclassifying a Transfer to a Expense in QuickBooks Online

This has been VERY helpful, thanks.  I have the additional problem of, RE-Reconciling.  After changing the Reconciled transfer to a payment to vendor it altered my reconciliation.  I ADDED the transaction and DELETED the original transfer with the same monetary value so I know the reconciliation is correct by QBO sees a missing entry.  How do I rectify that?

 

Thanks

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QuickBooks Team

Reclassifying a Transfer to a Expense in QuickBooks Online

Hi, @mcasey318. Thank you for joining the Community.

 

I'm glad you were able to un-reconcile, but now lets correct the missing entry.

 

When you go to input your end of year balance you should be able to see an error message pop up stating what transactions are missing.

 

You can recreate the entry to bring the balance back out. Before you do, I recommend speaking with your accountant to make sure you're not reentering the wrong transactions.

 

Just follow the step-by-step instructions given in Correcting Reconciliation Errors.

 

Checked the Audit Log history as well to check the deleted transaction.

 

Please don't hesitate to reach back out if you have any more questions or concerns. Cheers to a safe and productive work week ahead.

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Level 1

Reclassifying a Transfer to a Expense in QuickBooks Online

I saw the instructions for how to reclassify a transfer to an expense BEFORE it hits the register, but once it goes into the register how do you reclassify it?  The screen there does not have a radio button to un-click.  Thanks for any help.

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Moderator

Reclassifying a Transfer to a Expense in QuickBooks Online

Good day, peajai.

 

You can open the expense transactions from the register and reclassify it from there.

 

Below are the steps to complete the process:

 

  1. View the account's register in the Chart of Accounts.
  2. Click the Expense transaction and hit Edit.
  3. You can reclassify it from there. Hit Save and close.

 

You might find this article interesting about reclassifying tools in QuickBooks Online: Reclassify or move multiple transactions at once.

 

Additionally, I'm including this article to help guide you more in managing your transactions in QuickBooks:

 

This will get everything nice and organized in your account. If you need help with these steps or anything else, just let me know. I'd be glad to help.

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