Question

Transferring Balances Between Classes

Forum|Forum|6 years ago
March 16, 2020
5 replies
8 views

Hello All!

I do accounting for my church and we use classes in QB to track funds designated for specific purposes (General Funds, Youth Group Funds, Building Fund, etc.) Occasionally we have a special project I will build a class for and then once the project ends, it is no longer needed. I know you can inactivate the class, however, is there a way to transfer the funds in the class into another class? For instance, we raised money to replace the HVAC system in the building. That project is complete and came in under budget (YAY!) but there is now money tagged in the HVAC class and it shows a balance when I run all of my reports by class. I would like to move those funds tagged with the HVAC class into the Building Fund class and then inactivate the HVAC class.

Is there a transaction to process that will accomplish this? If not, any ideas of how to remedy this? It's important because we use this fund/class method to show the true balances of what we have in each "fund" at any given time.

Thanks in advance for any suggestions!

QuickBooks Desktop

MaryLandT

Level 10

Hi there, bbcukiah,

Thank you for sharing complete details about transferring balances between classes. In QuickBooks Desktop (QBDT), you can assign a class to track your transactions.

You'll want to open each transaction from the report you've pulled up, then select a different class from there. This way, the balance will be transferred to another class. The screenshot below will show how to select another class if you record the funds using a bank deposit. Just click the Class drop-down, and choose a different one.

For more details, check out the How to use class tracking in QuickBooks to know the latest updates in the system.

Keep me posted if there's anything else you need. I'm always around to help you out.

B

bbcukiahAuthor

Thank you for the reply!

I'm still a little confused. It appears what you showed was if I had one deposit that I needed to go back in time and change classes on, I could use that method, which I get. But my situation is that I had multiple deposits over time and multiple expenses that came out of that fund and now the class still has money assigned to it as a "balance" and the project is over. I would like to move the balance of the funds assigned to that class and put it in the balance assigned to another class.

As an example, I had ten deposits and ten expenses over time tagged with the "HVAC" class. That class currently shows a "balance" of $200 when I run reports by class. The balance happened as a result of the net difference between the ten deposits and ten expenses. But that HVAC project is now over and I want that $200 to show as part of the balance of another class and then inactivate the HVAC class. That is the transaction I'm looking to accomplish.

I hope I am making sense... thank you for your help!

J

JamesDuanT

QuickBooks Team

I appreciate the detailed response, bbcukiah,

Aside from the solution provided by MaryLandT, there is another way to move the balances in bulk from class to another. You can create a journal entry to move the balances. I'd recommend asking other accountants insights about this.

Otherwise, we'll need to go through each deposit and update the assigned classes.

Feel free to keep us posted if you have other concerns that require our assistance.

M

Moray Baby Bank

Hello:

You have the exact same problem as I have, a small balance left in 1 class that needs transfering to another class. Did you ever get a reply or work out a solution.

Thank you

Ian

U

UDAdc

Hi,

I am having the same problem moving funds between classes. Did anyone find a solution?

G

GraceC

Level 4

Thank you for taking the time to reach out to us here on the Community page, @UDAdc.

As mentioned by my colleague above, you can create a journal entry to move your funds between classes. Before doing so, I'd suggest reaching out to your accountant on the best way to categorize the accounts.

I'll guide you how:

Click Company.
Go to Make General Journal Entries.
Fill in the necessary fields.
Click Save & Close.

For detailed check out this article to know when you can create a journal entry.

You might also want to check this great article in case you'll need to reconcile your accounts in QBDT: Reconcile an account in QuickBooks Desktop.

If you need anything else, please drop me a line below. I'm always here to help.

Pabz_L

Hello there, @laceygarner.

I appreciated you for performing the given information from my colleague.

The only way to transfer balances between classes are the ones that were mentioned by my colleagues, you’ll need to go back to your deposits and update the assigned classes to reallocate the funds.

I recommend contacting your accountant so you'll be guided with the process.

I'm adding an article here for additional information when transferring funds in Quickbooks Desktop: Transfer of funds.

Please know that you can always post here in the Community if you have any other questions. Have a nice day!

T

Tranette1

I figured this out on my own as Quickbooks has not solved the non-profit classes/funds issue. I also use Quickbooks for a church and use classes to track funds. I need to move amounts at the end of each month from the General Fund to the Mission's Fund. Everyone always says to use the General Journal but it always unbalances the classes. This is really frustrating and should be way easier. So here's what you do. (It's putsy and doesn't make sense but has worked for me for years and years.)

-Create a Wash Account for the 4 transactions that you will need to do every time you move amounts from one class to another. All 4 transactions will have the same date and amount.

In the register of the Wash Account, enter a transaction with the amount in the Payment box, enter an Income Account, and enter the Class you want the money to go into.
Next, enter a transaction with the amount in the Deposit box, enter the same Income Account that you used in Step 1, and enter the same Class as Step 1.
Again, enter a transaction with the amount in the Deposit box, enter the same Income Account that you used in Step 1, and enter the same Class as Step 1.
NOW, enter a transaction with the amount in the Payment box, enter an Expense Account, and enter the Class you want the money to come out of.

The Wash Account should zero out. Go back to your Balance Sheet by Class and see if it looks right (be sure the date is on or after the date of your 4 transactions).

I hope this helps. I now love Quickbooks because I was able to figure this out. If I hadn't, I probably would have moved on to a more non-profit friendly software.

L

Libni

Hello Tranette,

Happy New 2021. Tranette, are you using the QuickBooks desktop version or the Online version? Thanks.

S

sue1981

Hello, I just had this issue recently but I have only been using Balance Sheets by Classes for one client that I took on over a year ago. I have done the same journal entry multiple times and this is the first time I have see the unbalance number at the bottom of my balance sheet. The solution per Quickbooks is to set up a wash account. This seems rediculous to me, you should be able to classify any entry but according to Quickbooks not for Journal entries and a whole list of other transactions. This should be fixed by Quickbooks. I have read other comments saying balance sheet by classes are not reliable.

R

Rewjrii

I have successfully used Journal Entries to transfer funds for years, in QB Premier Desktop. First create two new categories: Funds transfer Income (an income account) and Funds transfer Expense ( an expense account). Then create your Journal entry. Use the Funds transfer Income and Class the fund you want the money to go into, and amount in the increase column. Then Funds transfer Expense with the same amount in decrease column and Class the fund the money is to come out of.

Keep in mind that those two accounts will show up on P/L as both Income and Expense, but will be equal - net zero effect on balances. If you want in customizing reports, just filter those two accounts out, and they will not show up on P/L.

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