Question

Assigning account to a transfer transaction

Forum|Forum|4 years ago
January 1, 2022
1 reply
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Hello

I have a few transactions where funds are transferred from my savings to checking. It works fine and the transactions are posted and listed in my check register without problems. How do I assign an account to these transactions from my chart of accounts? If i change the account from 'savings' to the category I want, then the transfer disappears from the 'checking' account. I don't want to delete the transfer, just account for it in a category so it shows up in my detailed P & L report. I am sure it is very simple, but I am completely missing how to do this. Thank you

QuickBooks Desktop

KimMcCPA

@JerseyMom ,

A transfer from savings to checking only affects the balance sheet, because both bank accounts are assets.

In general, a business would transfer an amount from savings to checking because the balance in checking isn't enough to cover upcoming expenses, then the business would pay expenses from checking at a later date. At the point that funds are disbursed from the checking account to the vendor, the expenses are charged (or, with an accrual-based system, accounts payable is reduced).

What type of P&L account (revenue or expense) are you trying to charge?