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SurlyBird
August 29, 2023
Question

Batched transfer between intercompany bank accounts

  • August 29, 2023
  • 1 reply
  • 0 views

Greetings,

 

My client erroneously made four ACH transfers - in one day - from one company checking account to another:

 

1) $200

2) $300

3) $250

4) $100

Total: $850

 

The "from" bank initiated the ACH transfer by withdrawing one lump sum of $850. The  amounts were then individually deposited in the "to" account as 4 separate transactions. There are no receivables associated with these amounts, we just need to record this activity as transfers of funds from one company account to another.

 

I am having a heck of a time figuring out how to record all this activity. Would appreciate anyone's help and expertise!

 

Thank you,

SG

1 reply

R
ReymondO
August 29, 2023

Good day, @SurlyBird. I'm here to guide you through the process of recording these ACH transfers in QuickBooks.

 

To accomplish this task, you can use the Transfer feature to accurately document these transactions within the program. Here's how:

 

  1. Click + New.
  2. Select Transfer.
  3. From the Transfer Funds From drop-down list, choose the bank account that the money is coming from.
  4. From the Transfer Funds To dropdown list, select the bank account that the money is going to.
  5. In the Transfer Amount field, enter the amount being transferred.
  6. Edit the Date field.
  7. Enter a description of the transfer in the Memo field (optional).
  8. Click Save and close to complete the transfer.
  9. Select Yes if you double-checked the date.

 

Additionally, you can easily locate the recorded transfer by reviewing the account register within the chart of accounts.


Should you have any further inquiries or concerns related to QuickBooks, please don't hesitate to reach out again in the Community. I'm always available to offer assistance. Best wishes for your ongoing success.

S
SurlyBirdAuthor
August 30, 2023

Thank you for replying. Your answer seems to address just how to do a transfer, but I have a particular situation I'm trying to overcome.


How do I book an $850 decrease from one bank which are then deposited as four individual deposits that total $850?

Deposit #1: $200

Deposit #2: $300

Deposit #3: $250

Deposit #4: $100

Does QBO have a function for this, or is this a clearing account type of situation?

Thank you,

SG

E
Ethel_A12
August 30, 2023

Thank you for getting back to us, @SurlyBird.

 

I'm here to help you record the fund transfer from one bank to another.

 

Since you want to record the lumpsum amount of the withdrawal of the "From" account and split the amount in the "To" account, I recommend creating a Journal Entry. This way, you can move money between accounts. However, it is best to consult your accountant before making any changes to your account. If you don't have one, click this link: Find an accountant.

 

Here's how to create a Journal Entry:

 

  1. Click the + New button.
  2. Select Journal entry.
  3. On the first line, select an account from the Account field. Depending on if you need to debit or credit the account, enter the amount in the correct column.
  4. On the next line, select the other account you're moving money to or from. Depending on if you entered a debit or credit on the first line, enter the same amount in the opposite column.
  5. Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other. It means the accounts are in balance.
  6. Enter information in the memo section to know why you made the journal entry.
  7. Hit Save and new or Save and close.

 

For the detailed steps, refer to this article: Create journal entries in QuickBooks Online. 

 

You can also read this article to guide you about printing a Journal Entry report for future reference: Print a journal entry report in QuickBooks Online.

 

Feel free to click the Reply button below if you have questions about moving funds in QuickBooks Online. I'm always here to help. Have a great day.

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