@qbofree5-gmail-c
There's no need to create a separate bank sub-account. You can create an equity account with the reserve balance. That allows you to see how much has been set aside for reserve replacements but still keeps the cash in the savings account.
The proper way to handle reserves is to start by recording all dues from the homeowners as income. Then, make a journal entry that will simultaneously create an expense for the amount put into reserves and allocate those funds to a reserve equity account. That will offset the HOA's income since reserves are not taxable but it will not have any effect on the bank account. To do that, after you have recorded the dues received as income, make a journal entry and debit your Replacement Reserves expense account (set one up if you don't have one) and credit your Replacement Reserves equity account (set one up if you don't have one) for the amount that the board has authorized to fund the reserve account.
