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1JKadmin
February 10, 2021
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Transaction type incorrectly labeled as DEP when is CHK though correctly posted as debit from account

  • February 10, 2021
  • 1 reply
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What is causing a transaction type to be DEPOSIT rather than CHECK when I do a funds transfer between my two bank accounts. It is correctly posted as a debit from the account. The receiving account is correctly showing as a DEPOSIT transaction type and as a deposit/credit to that account. I am importing from my bank (feeds). I could "just live with it", having the transaction type labeled wrong, since everything does reconcile but there has to be an explanation of why QuickBooks would label the transaction type as DEPOSIT instead of CHECK. I've had this happen several times. What am I doing wrong?

Best answer by KlentB

A couple of my questions were not addressed or answered.

 

Am I doing something wrong to cause a funds transfer transaction in both sending and receiving bank accounts to be both classified as either both Deposit transaction type or both Check transaction type?

 

Also, if I were to just manually enter these funds transfer transactions first in to my QuickBooks register as Transfers and then mark them as Ignore for the (auto) matched transaction in my list to approve, would this be a way to deal with this type transaction and get the transaction types to show correctly?


I can shed a light on that, 1JKadmin.

 

You're not missing anything. By default, the "CHK" type stands for checks; "DEP" represents a deposit you've made to your bank, while "TRANSFR" represents a transfer you've made between two bank registers in the program. Since you're importing transactions, please take note that your financial institution controls how and what controls what and how information is uploaded to QuickBooks.

 

To ensure that the transfers will be labeled correctly, you'll want to record the transactions manually and then ignore the imported transactions. I'll show you how:
 

  1. Select Banking from the top menu bar.
  2. Choose Transfer Funds.
  3. Enter in the relevant information:
    • Date
    • Account to transfer funds from
    • Account to transfer funds to
    • Class (if applicable)
    • The amount of the transfer 
  4. Click Save & Close or Save & New.

Once done, follow the steps below to ignore or exclude the transaction in the Bank Feeds Center:
 

  1. Select Banking from the top menu bar.
  2. Choose Bank Feeds, then go to Bank Feeds Center.
  3. Select the appropriate bank account, then click the Transactions List button.
  4. Locate the transactions to ignore.
  5. Choose Ignore from the drop-down arrow in the Action column.
  6. Select Yes to confirm the changes.

Additionally, here's an article that you can read to help manage and review your online banking transactions: Add and match Bank Feed transactions in QuickBooks Desktop.

 

You're always welcome to visit this thread again if have follow-up questions. Just add the details below and I'll get back to you as soon as possible.

1 reply

MaryLandT
MaryLandT
February 10, 2021

I can tell why checks are showing as DEP, 1JKadmin.

 

Transactions you've transferred through the actual bank will appear as DEP when imported to QuickBooks. It's already considered as a deposit in the system.

 

After importing bank transactions, you can check this link to help review them: Add and match Bank Feed transactions in QuickBooks Desktop. It provides instructions and detailed steps.

 

You can also create a transfer within QuickBooks, then match it with the one you've imported. Let me show you how:

 

  1. Click the Banking menu, then click Transfer Funds.

  2. On the Transfer Funds window, click the Transfer Funds From drop-down arrow, and then click the account to transfer the funds from.

  3. Click the Transfer Funds To drop-down arrow, then click the account to transfer the funds into.

  4. Click the Online Funds Transfer checkbox to select it.

    QuickBooks warns you if the accounts are not eligible for an online transfer.

  5. Click the Transfer Amount line and enter the amount to transfer.

  6. (Optional) Click in the Memo line and enter a note for yourself about this transfer.

  7. Save the transfer.

 

Stay in touch with me if you need anything else with your bank transactions. I'll be around to help you.

1
1JKadminAuthor
February 11, 2021

To clarify, whenever I approve an imported transaction that is a funds transfer between my two bank accounts in QuickBooks, whichever bank account transaction I do first, if that transaction is a deposit, QuickBooks classifies the transaction type in the corresponding sending bank account as a DEP also, even though it's a debit from that account. And if I first do the bank account that has the funds transferred from/out of it, QuickBooks shows both transaction types as CHKs in both bank accounts.

 

Could this be something that I am doing incorrectly to cause this when I approve the transaction?

 

If I just manually enter these funds transfer transactions first in to my QuickBooks register as Transfers and then mark them as Ignore for the (auto) matched transaction in my list to approve, would this be a way to deal with this type transaction and get the transaction type to show correctly?

 

Or could a Rule be written that when funds are transferred between Bank Account A and Bank Account B, the transaction type is classified as a Transfer? 

J
JonpriL
February 12, 2021

Hello @1JKadmin,

 

Let me help share how your transaction is posted in your account register in QuickBooks Desktop.

 

When creating a fund transfer, you'll see two transactions in both bank account registers as this is how your transaction is posted. One as a deposit from the source account and a payment from the other bank.

 

You're on the right track, you can create a bank rule to help categorize these transactions. Learn more about this feature with this article: Create rules to categorize transactions.

 

Additionally, 

I've also included this reference for a compilation of articles you can use while working with us: Banking for QuickBooks Desktop.

 

If you have any other questions, please let me know by leaving any comments below. I'll be here to lend a hand.

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