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steve-fitzgerald
March 16, 2021
Question

Transfer funds between classes

  • March 16, 2021
  • 1 reply
  • 0 views

Like many churches we use classes as funds. What I want to do is transfer funds between classes/funds so we should income in the receiving fund.

 

For example, as part of our budget let’s say we transfer $250 per week from our general fund to our benevolence fund. I know I can do this using a simple journal entry. My question is should I be debiting the donation account (or do you use a different income account for this purpose) of the general fund and crediting the donation account (or maybe another account) in the benevolence account? 

Thanks.

    1 reply

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    steve-fitzgeraldAuthor
    March 19, 2021

    Anyone have any suggestions?

    DivinaMercy_N
    DivinaMercy_N
    March 19, 2021

    The Community has got you covered, @steve-fitzgerald.

     

    The posting of amounts depends on what type of accounts you will use with your Journal Entry. To learn more on how account balances are affected by debits and credits, see the table in this article: How accounts are affected by debits and credits.

     

    Then, to guide you in choosing the correct account, I recommend consulting your accountant. This way, we can ensure that your books and accounting data are accurate. If you don't have one, use our Find an accountant tool to look for a Pro-Advisor near you.

     

    For additional reference, open this link: Debit vs credit.

     

    Also, QBO has a report you can use to see both Debits and Credits for each transaction. For the detailed guide, visit the Create a report that shows Debits and Credits for each transaction page. 

     

    Feel free to get back here if you need further assistance in creating Journal Entries in QuickBooks. I'm always here to help. Have a good one.  

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    TonyH70
    October 21, 2021

    I use QB online and have several classes to identify different projects within the organisation. I need to transfer amounts from a funded project that pays a percentage into our overheads into the overheads class. Can you clarify which is the debit and credit in the journal entry please

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