transfer between bank accounts

Hi jfarias123, in QuickBooks Desktop, the system does not allow a direct transfer between an Expense account and an Investment (Asset) account because they are on different financial statements.

To reflect this as an expense while moving the funds, you can use a single Journal Entry (JE). It is advisable to consult with your accountant before proceeding to ensure these accounts are classified accordingly.

1. Debit your Expense Account; this records the cost in your budget.
2. Credit your Operating Bank Account. This shows the money leaving.
3. Then, to transfer the money into the investment side, you would add a second entry (or a third line) to debit the Investment Account and credit the same Expense Account. This effectively cleans the expense while moving the balance.
   
   
   
    
   
   

By using the same expense account for both steps, the two entries cancel each other out, resulting in a net zero balance. This lets you move the money without it looking like a permanent cost, while keeping your bank totals exactly right.

For further questions or concerns, you can leave a comment below.

Hello there, @jfarias123. I wanted to check in and see how things are going. Did the solution we provided work for you? Hopefully, everything is now running smoothly. If it’s not, just let me know.

We’re here and happy to help if you need anything else.

RE: Normally I would do a straight transfer however the bank account where money is coming out of we budgeted this as an expense.

Transferring money between bank accounts is never an expense. There is no expense until you spend the money.  The likely way to fix this is to rethink your budget.