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lpenney18
June 5, 2020
Question

Bank Transfers by check

  • June 5, 2020
  • 2 replies
  • 0 views

I transferred funds between 2 bank accounts using a check and a deposit transaction. These transactions show up as income and expenses on the P&L. I would like these to come off the P&L as they are not income and expenses. I know I can do this using Transfer Funds but a check was physically written and a deposit made at the bank, so how can I record this without deleting the check and deposit and also not recording as income and expense?

2 replies

Jen_D
Jen_D
June 5, 2020

Hello there, @lpenney18,

 

A check written in QuickBooks are shown as expenditures in the Profit and Loss report when an Expense Account is used. This is the same when a deposit is using an Income Account on its line item.

 

There isn't a direct way to clear this information in the P&L report other than deleting or changing the accounts used to something else. If in case you're not confident doing that, checking with an accounting professional for guidance is the best resort.

 

I also want to understand this better. When you said they aren't income or expense, what are these entries for? How is it recorded in real life or in the bank statement? Was it just a plain transfer of funds between Bank 1 and Bank 2 or is it way more complicated than that? I need to confirm this so I can guide you on how to properly account this in the program.

 

For now, the proper way of recording a transfer is going to the Banking tab and selecting Transfer Funds. The Transfer Funds From option will help you select the balance sheet account that you want to take money out of. The current balance of this account (before the transfer) appears in Ending Balance. The Transfer Funds To field is where you'd like to put money into.

 

I'll be waiting for your response on this as I want to ensure you're all set. Message me again in the comments. Have a good one.

P
planeguy
August 4, 2021

 

I have this same question and I don't see a clear answer regarding what do you do with the check as far as booking it.

C
CharleneMaeF
August 4, 2021

I'm here to share some insights about what to do with your checks in QuickBooks, planeguy.

 

If the transaction is recorded directly as a transfer of funds from one bank to another, you can manually add it as a check. But, instead of using an expense, I'd suggest choosing a bank account. Then delete the deposit. After that, the transaction decreases, then the other increases.

 

In case you'll want to record the check as a transfer, you'll have to delete the transaction and then recreate it. I'll show you how to create a transfer in QuickBooks:

 

  1. Go to the Banking tab and then select Transfer Funds. 
  2. On the Transfer From button, select the account you want to take money out of.
  3. On the Transfer Funds To field, choose the account you want to put the money in.
  4. Enter the other necessary details.
  5. Once done, click on Save and close.

 

However, if the transaction has been reconciled, I'd recommend consulting an accountant to prevent messing up your books. In case you don't have any, visit our Find an Account website to have one.

 

Additionally, I've included these articles that'll help you learn more about managing your checks in QuickBooks.

 

 

Feel free to comment down below if you have any other concerns or questions about managing checks and other QuickBooks transactions. I'm always glad to help in any way I can. 

BigRedConsulting
BigRedConsulting
June 6, 2020

Since you wrote a check to effect the transfer, a Transfer type transaction isn't really appropriate.

 

Instead, record a check as you did, and in the detail area of the check enter the other bank account instead of an expense.  And then delete the unneeded deposit.

 

Then you'll have one transaction that decreases one bank account and increases the other, without impacting your P&L, and which reflects what you did in the real world.

    3
    35351
    May 5, 2021

    I have a similar situation. Moving money from Bank A to B and had to write a check to deposit into bank B. 

    We would like this to show as a transfer vs hitting an expense account and then finding an account to deposit amount into. Check has been written and we picked an account for that to hit. IS there a way to change this to show as transfer?

     

    R
    ReymondO
    May 5, 2021

    Hey there, @35351.

     

    Since you have a similar concern above, I'd recommend following the recommendation that was shared by BigRedConsulting. 

     

    Once you wrote a check, you have to record it by writing a check in QuickBooks. This way, it will be recorded as what you did in the actual world. 

     

    In addition, changing this transaction type from check to transfer is unavailable in the program. 

     

    If you really want to record it as Transfer, we have to delete the check and recreate it as Transfer. Just open the transaction and select the Edit menu, then Delete Bill/Bill Pmt-Check. 

     

    Once done, follow the steps that were shared by my colleague Jen_D record it as Transfer.

     

    You can also seek out your accountant for further guidance in handling this transaction in QuickBooks. 

     

    That should do it! Should you have other questions about managing your bank transactions in QuickBooks, feel free to leave a post below. I'm always here to help.

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