Transferring between escrow accounts

1 is associated with the Account that you're getting the money for.

2 shows B as where the money is going to

3 shows A is where the money came from

No difference than receiving payment for an Invoice and then moving the money out of Checking to Savings.

And just out of curiosity...   Why are you having the bank put the money in A in the first place?  To keep thing cleaner I'd have Deposits to A go to A and Deposits for B go to B.  I don't get why you're depositing info A in the first place?  Though having a clearing account where deposits come from various places isn't unusual, it doesn't sound like that's what you're doing.

Hi,

We do closings which consists of bank loans being held in our escrow account and then getting distributed by the closing.

It's not in my control to which account the bank sends the funds to.  I'm just the bookkeeper.  Its my responsibility to transfer those funds from acct A when the checks that are being disbursed by closing are written from account B, so that those checks can be covered.

Got it.

So it sounds like the money is deposited into a clearing account and the associated Account is a Liability Acct to the Contract# or Client.