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sw1222
Level 1

Transferring between escrow accounts

My company has 2 Escrow accounts.  Lets call them A and B. Often when the Bank sends a loan to account A, it has to be transferred to account B.

How would I categorize the 3 steps?

1-incoming wire to A

2-transfer wire from account A to B

3-record the incoming transfer in B

3 Comments 3
Pete_Mc
Community Champion

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.

sw1222
Level 1

Transferring between escrow accounts

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.

Pete_Mc
Community Champion

Transferring between escrow accounts

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.

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