How to Transfer from one bank to another?

Discussion in 'Quicken' started by Jack Hill, Mar 26, 2009.

  1. Jack Hill

    Jack Hill Guest

    We have two company banks. (one close by for cash deposits) We need to
    transfer funds from one bank to another often. We can't seem to write a
    check from one Quicken Bank Checking account and deposit it into another
    Quicken Bank Checking account without getting a double off-setting
    entries in both accounts. It's easy to write a check on one bank and
    deposit it into another bank in the physical world, but how can I make
    this transaction in Quicken?
     
    Jack Hill, Mar 26, 2009
    #1
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  2. Jack Hill

    Porter Smith Guest

    Jack Hill <> wrote in news:countert-AA4969.11512826032009
    @news.isp.giganews.com:

    > We have two company banks. (one close by for cash deposits) We need to
    > transfer funds from one bank to another often. We can't seem to write a
    > check from one Quicken Bank Checking account and deposit it into another
    > Quicken Bank Checking account without getting a double off-setting
    > entries in both accounts. It's easy to write a check on one bank and
    > deposit it into another bank in the physical world, but how can I make
    > this transaction in Quicken?
    >


    Are you writing a paper check on Bank A then depositing it into Bank B?
    Then why not do just that in Quicken? Record check #1234 payable to
    yourself in Back A, then record a deposit in Bank B.

    If you are transferring the money electronically you should be able to
    create Transfer transaction on Bank A, and specify Bank B as the "transfer
    account"
     
    Porter Smith, Mar 26, 2009
    #2
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  3. Jack Hill

    R. C. White Guest

    Hi, Porter - and Jack.

    > Then why not do just that in Quicken? Record check #1234 payable to
    > yourself in Back A, then record a deposit in Bank B.


    No, that's what results in the double accounting.

    The check from A increases the balance in B. Then the deposit to B
    increases its balance again (while decreasing A again, of course).

    Jack must choose from two options:
    1. Record the check from Bank A as a transfer to Bank B. That's all; the
    transfer will automatically increase the balance in B.

    or:
    2. Record the check from Bank A as a transfer to a Suspense Account - by
    whatever name. (Transfers in Transit?) Then record the deposit in Bank B
    as having come from that same Suspense Account. After both entries, the
    Suspense Account balance will be zero, A will be decreased and B will be
    increased - just like in The Real World.

    RC
    --
    R. C. White, CPA
    San Marcos, TX
    (Retired. No longer licensed to practice public accounting.)

    Microsoft Windows MVP
    (Using Quicken Deluxe 2009 and Windows Live Mail in Win7 x64)

    "Porter Smith" <> wrote in message
    news:Xns9BDA9BF50E77Cmyport2000yahoocom@127.0.0.1...
    > Jack Hill <> wrote in news:countert-AA4969.11512826032009
    > @news.isp.giganews.com:
    >
    >> We have two company banks. (one close by for cash deposits) We need to
    >> transfer funds from one bank to another often. We can't seem to write a
    >> check from one Quicken Bank Checking account and deposit it into another
    >> Quicken Bank Checking account without getting a double off-setting
    >> entries in both accounts. It's easy to write a check on one bank and
    >> deposit it into another bank in the physical world, but how can I make
    >> this transaction in Quicken?
    >>

    >
    > Are you writing a paper check on Bank A then depositing it into Bank B?
    > Then why not do just that in Quicken? Record check #1234 payable to
    > yourself in Back A, then record a deposit in Bank B.
    >
    > If you are transferring the money electronically you should be able to
    > create Transfer transaction on Bank A, and specify Bank B as the "transfer
    > account"
     
    R. C. White, Mar 26, 2009
    #3
  4. Jack Hill

    Andrew Guest

    R. C. White wrote:
    > Hi, Porter - and Jack.
    >
    >> Then why not do just that in Quicken? Record check #1234 payable to
    >> yourself in Back A, then record a deposit in Bank B.

    >
    > No, that's what results in the double accounting.
    >
    > The check from A increases the balance in B. Then the deposit to B
    > increases its balance again (while decreasing A again, of course).
    >

    This one R.C. I really don't understand your post. If I have two accounts
    in banks A and B and write a check to myself out of A to put in B as a
    deposit (As I think Porter Smith was advising and what I would have also
    suggested), how does this possibly result in 'double' accounting? The
    writing of a check from A has nothing to do with the balance in B until I
    put it there as a deposit. One withdrawal, one deposit.

    Now it's true we're talking Quicken here, not something like Quickbooks
    which I think does enforce double entry bookkeeping. And there in lies what
    I think might be 'problem' in my understanding what you're saying --
    technically, I have no doubt you're right, but again, this is Quicken.

    I do realize I am probably wrong in my naive understanding of this I am
    sure, so I look forward to understanding where I'm wrong. But I'm not 100%
    willing to buy off on complexity (a phantom account??) just to satisfy some
    arcane accounting law which might not have relevance to Quicken for a small
    business.
    --
    -------------------------------------------------------------
    Regards -

    - Andrew
     
    Andrew, Mar 27, 2009
    #4
  5. Jack Hill

    R. C. White Guest

    Hi, Andrew.

    > The writing of a check from A has nothing to do with the balance in B
    > until I put it there as a deposit. One withdrawal, one deposit.


    When you record the check in Bank A's Register, what do you put in
    "Category"? Do you leave it blank?

    When you record the deposit in Bank B's Register, what do you put in
    "Category"? Do you leave it blank?

    If you leave the "Category" blank each time, I suppose you would get the
    "One withdrawal, one deposit" you mention. Or if you use "Cash" each time -
    but that is the equivalent of my "Suspense (by whatever name)" account,
    isn't it?

    > Now it's true we're talking Quicken here, not something like Quickbooks
    > which I think does enforce double entry bookkeeping.


    I've never used QuickBooks, but yes, I am assuming that every check and
    every deposit will have a destination or source "Category".

    And that's where Jack is going wrong, I think. First he shows Bank B as the
    destination for the money from Bank A's account. And then he shows Bank A
    as the source of the money deposited in Bank B - in a second entry. So the
    money gets added to Bank B twice: once from Bank A's check and again from
    Bank B's deposit - rather than once from a single "Transfer" entry.

    Since checks usually are numbered and deposits usually are not, and since
    there can be no such deposit until the check has been written, the simplest
    solution is to use "Bank B" as the "Category" when entering the check into
    Bank A's Register. When Quicken records the entry - as a Transfer - the
    deposit will show up in Bank B's Register and will automatically show that
    it was transferred from Bank A. There will be no need to make a redundant
    entry for the deposit in Bank B's Register.

    As a side note, when I worked for a national tire company in a small town in
    Oklahoma 50 years ago, we had a similar system. I made two deposit slips
    each day. The first included cash receipts and all local checks we received
    from our customers; these were deposited into our local bank. Then I wrote
    a check on that local bank, payable to our big-city bank, for the total of
    that deposit and included it, along with all the out-of-town checks we
    received, in a second deposit slip and mailed them all to our big-city bank.
    The treasurer of the big company had determined that this would cut out a
    day or two of processing and transfer time in clearing both the local checks
    and the ones that had to go through the national clearinghouse. (Of course,
    there was no Quicken then. :^} )

    RC
    --
    R. C. White, CPA
    San Marcos, TX
    (Retired. No longer licensed to practice public accounting.)

    Microsoft Windows MVP
    (Using Quicken Deluxe 2009 and Windows Live Mail in Win7 x64)

    "Andrew" <> wrote in message
    news:49ccbca1$0$27784$...
    > R. C. White wrote:
    >> Hi, Porter - and Jack.
    >>
    >>> Then why not do just that in Quicken? Record check #1234 payable to
    >>> yourself in Back A, then record a deposit in Bank B.

    >>
    >> No, that's what results in the double accounting.
    >>
    >> The check from A increases the balance in B. Then the deposit to B
    >> increases its balance again (while decreasing A again, of course).
    >>

    > This one R.C. I really don't understand your post. If I have two accounts
    > in banks A and B and write a check to myself out of A to put in B as a
    > deposit (As I think Porter Smith was advising and what I would have also
    > suggested), how does this possibly result in 'double' accounting? The
    > writing of a check from A has nothing to do with the balance in B until I
    > put it there as a deposit. One withdrawal, one deposit.
    >
    > Now it's true we're talking Quicken here, not something like Quickbooks
    > which I think does enforce double entry bookkeeping. And there in lies
    > what I think might be 'problem' in my understanding what you're saying --
    > technically, I have no doubt you're right, but again, this is Quicken.
    >
    > I do realize I am probably wrong in my naive understanding of this I am
    > sure, so I look forward to understanding where I'm wrong. But I'm not
    > 100% willing to buy off on complexity (a phantom account??) just to
    > satisfy some arcane accounting law which might not have relevance to
    > Quicken for a small business.
    > --
    > -------------------------------------------------------------
    > Regards -
    >
    > - Andrew
     
    R. C. White, Mar 27, 2009
    #5
  6. Jack Hill

    Jack Hill Guest

    Thank you Porter, RC and Andrew,

    I'm working in QuickBooks not Quicken, my mistake. I tried opening a new
    chart of accounts, naming it, "Transfer" and making it a "Bank" account
    type. Maybe that's where my problem is?

    I have to select an account when I write a check, easy for an expense,
    but when we need to transfer from the local bank to the big bank and
    visa versa, then I'm not sure what account or what account type is
    appropriate.

    I can understand the "Expense" account named Transfer, and I"ll try that.

    We do have an equity account where we can draw out or infuse in, but I
    don't think it's correct to use an equity account simply to move
    checking account assets from one bank to another?

    QuickBooks does not seem to have a Transfer feature as Quicken does. It
    would be easy if it did. For whatever reason, everything I've tried
    results in a credit and debit in both bank checking accounts, the net
    result is no transfer of funds.

    I'll try the "Expense" account and see if that works. Thank you everyone
    for your feedback, it has been very helpful. I'll get back to report my
    findings.

    Jack




    In article <>,
    "R. C. White" <> wrote:

    > Hi, Andrew.
    >
    > > The writing of a check from A has nothing to do with the balance in B
    > > until I put it there as a deposit. One withdrawal, one deposit.

    >
    > When you record the check in Bank A's Register, what do you put in
    > "Category"? Do you leave it blank?
    >
    > When you record the deposit in Bank B's Register, what do you put in
    > "Category"? Do you leave it blank?
    >
    > If you leave the "Category" blank each time, I suppose you would get the
    > "One withdrawal, one deposit" you mention. Or if you use "Cash" each time -
    > but that is the equivalent of my "Suspense (by whatever name)" account,
    > isn't it?
    >
    > > Now it's true we're talking Quicken here, not something like Quickbooks
    > > which I think does enforce double entry bookkeeping.

    >
    > I've never used QuickBooks, but yes, I am assuming that every check and
    > every deposit will have a destination or source "Category".
    >
    > And that's where Jack is going wrong, I think. First he shows Bank B as the
    > destination for the money from Bank A's account. And then he shows Bank A
    > as the source of the money deposited in Bank B - in a second entry. So the
    > money gets added to Bank B twice: once from Bank A's check and again from
    > Bank B's deposit - rather than once from a single "Transfer" entry.
    >
    > Since checks usually are numbered and deposits usually are not, and since
    > there can be no such deposit until the check has been written, the simplest
    > solution is to use "Bank B" as the "Category" when entering the check into
    > Bank A's Register. When Quicken records the entry - as a Transfer - the
    > deposit will show up in Bank B's Register and will automatically show that
    > it was transferred from Bank A. There will be no need to make a redundant
    > entry for the deposit in Bank B's Register.
    >
    > As a side note, when I worked for a national tire company in a small town in
    > Oklahoma 50 years ago, we had a similar system. I made two deposit slips
    > each day. The first included cash receipts and all local checks we received
    > from our customers; these were deposited into our local bank. Then I wrote
    > a check on that local bank, payable to our big-city bank, for the total of
    > that deposit and included it, along with all the out-of-town checks we
    > received, in a second deposit slip and mailed them all to our big-city bank.
    > The treasurer of the big company had determined that this would cut out a
    > day or two of processing and transfer time in clearing both the local checks
    > and the ones that had to go through the national clearinghouse. (Of course,
    > there was no Quicken then. :^} )
    >
    > RC
    > --
    > R. C. White, CPA
    > San Marcos, TX
    > (Retired. No longer licensed to practice public accounting.)
    >
    > Microsoft Windows MVP
    > (Using Quicken Deluxe 2009 and Windows Live Mail in Win7 x64)
    >
    > "Andrew" <> wrote in message
    > news:49ccbca1$0$27784$...
    > > R. C. White wrote:
    > >> Hi, Porter - and Jack.
    > >>
    > >>> Then why not do just that in Quicken? Record check #1234 payable to
    > >>> yourself in Back A, then record a deposit in Bank B.
    > >>
    > >> No, that's what results in the double accounting.
    > >>
    > >> The check from A increases the balance in B. Then the deposit to B
    > >> increases its balance again (while decreasing A again, of course).
    > >>

    > > This one R.C. I really don't understand your post. If I have two accounts
    > > in banks A and B and write a check to myself out of A to put in B as a
    > > deposit (As I think Porter Smith was advising and what I would have also
    > > suggested), how does this possibly result in 'double' accounting? The
    > > writing of a check from A has nothing to do with the balance in B until I
    > > put it there as a deposit. One withdrawal, one deposit.
    > >
    > > Now it's true we're talking Quicken here, not something like Quickbooks
    > > which I think does enforce double entry bookkeeping. And there in lies
    > > what I think might be 'problem' in my understanding what you're saying --
    > > technically, I have no doubt you're right, but again, this is Quicken.
    > >
    > > I do realize I am probably wrong in my naive understanding of this I am
    > > sure, so I look forward to understanding where I'm wrong. But I'm not
    > > 100% willing to buy off on complexity (a phantom account??) just to
    > > satisfy some arcane accounting law which might not have relevance to
    > > Quicken for a small business.
    > > --
    > > -------------------------------------------------------------
    > > Regards -
    > >
    > > - Andrew
     
    Jack Hill, Mar 27, 2009
    #6
  7. Jack Hill

    Andrew Guest

    R. C. White wrote:
    >
    > If you leave the "Category" blank each time, I suppose you would get
    > the "One withdrawal, one deposit" you mention. Or if you use "Cash"
    > each time - but that is the equivalent of my "Suspense (by whatever
    > name)" account, isn't it?
    >


    Ah, I get it. I WAS talking about the physical world, not Quicken. Yes,
    when I write the check from A to go to B, I sure do put B's account name as
    the category
    for the withdrawal, and then when it is actually made to B, all is well.

    Peace.

    --
    -------------------------------------------------------------
    Regards -

    - Andrew
     
    Andrew, Mar 28, 2009
    #7
  8. Jack Hill

    Andrew Guest

    Jack Hill wrote:
    > Thank you Porter, RC and Andrew,
    >
    > I'm working in QuickBooks not Quicken, my mistake. ...


    Ah ha- Quickbooks! For me now, all bets are off. I have QB for a club that
    I am going to start using it for when the new fiscal year starts on
    7/1/2009, but for now, I do not know much about it.

    --
    -------------------------------------------------------------
    Regards -

    - Andrew
     
    Andrew, Mar 28, 2009
    #8
  9. Jack Hill

    Laura Guest

    "Jack Hill" <> wrote in message
    news:...
    > Thank you Porter, RC and Andrew,
    >
    > I'm working in QuickBooks not Quicken, my mistake. I tried opening a new
    > chart of accounts, naming it, "Transfer" and making it a "Bank" account
    > type. Maybe that's where my problem is?


    You don't need another account to do this in QB--just the 2 bank accounts
    involved in the funds transfer. When you record the transfer of funds from
    one bank account to another just enter the other bank account as the
    "expense" account in the check form or register. The other account will
    automatically record the transaction in that account. You end up only having
    to post 1 transaction this way.

    If you enter a deposit as a second transaction then you will double post the
    funds transfer. Try and be consistant on how you record bank transfers. I
    usually record them on the account that is making the withdrawal using Write
    Checks or by entering the transaction directly in the account register like
    you would in Quicken.

    > I have to select an account when I write a check, easy for an expense,
    > but when we need to transfer from the local bank to the big bank and
    > visa versa, then I'm not sure what account or what account type is
    > appropriate.


    As mentioned above, just specify the other bank account where you would
    normally enter an expense account.

    >
    > I can understand the "Expense" account named Transfer, and I"ll try that.
    >
    > We do have an equity account where we can draw out or infuse in, but I
    > don't think it's correct to use an equity account simply to move
    > checking account assets from one bank to another?


    Correct, using an equity account is not appropriate in this case.
    >
    > QuickBooks does not seem to have a Transfer feature as Quicken does. It
    > would be easy if it did. For whatever reason, everything I've tried
    > results in a credit and debit in both bank checking accounts, the net
    > result is no transfer of funds.


    Yes it does. It is "hiding" under the Banking Menu. Just select
    Banking>>Transfer Funds
    >
    > I'll try the "Expense" account and see if that works. Thank you everyone
    > for your feedback, it has been very helpful. I'll get back to report my
    > findings.
    >
    > Jack
    >
    >
    >
    >
    > In article <>,
    > "R. C. White" <> wrote:
    >
    >> Hi, Andrew.
    >>
    >> > The writing of a check from A has nothing to do with the balance in B
    >> > until I put it there as a deposit. One withdrawal, one deposit.

    >>
    >> When you record the check in Bank A's Register, what do you put in
    >> "Category"? Do you leave it blank?
    >>
    >> When you record the deposit in Bank B's Register, what do you put in
    >> "Category"? Do you leave it blank?
    >>
    >> If you leave the "Category" blank each time, I suppose you would get the
    >> "One withdrawal, one deposit" you mention. Or if you use "Cash" each
    >> time -
    >> but that is the equivalent of my "Suspense (by whatever name)" account,
    >> isn't it?
    >>
    >> > Now it's true we're talking Quicken here, not something like Quickbooks
    >> > which I think does enforce double entry bookkeeping.

    >>
    >> I've never used QuickBooks, but yes, I am assuming that every check and
    >> every deposit will have a destination or source "Category".
    >>
    >> And that's where Jack is going wrong, I think. First he shows Bank B as
    >> the
    >> destination for the money from Bank A's account. And then he shows Bank
    >> A
    >> as the source of the money deposited in Bank B - in a second entry. So
    >> the
    >> money gets added to Bank B twice: once from Bank A's check and again
    >> from
    >> Bank B's deposit - rather than once from a single "Transfer" entry.
    >>
    >> Since checks usually are numbered and deposits usually are not, and since
    >> there can be no such deposit until the check has been written, the
    >> simplest
    >> solution is to use "Bank B" as the "Category" when entering the check
    >> into
    >> Bank A's Register. When Quicken records the entry - as a Transfer - the
    >> deposit will show up in Bank B's Register and will automatically show
    >> that
    >> it was transferred from Bank A. There will be no need to make a
    >> redundant
    >> entry for the deposit in Bank B's Register.
    >>
    >> As a side note, when I worked for a national tire company in a small town
    >> in
    >> Oklahoma 50 years ago, we had a similar system. I made two deposit slips
    >> each day. The first included cash receipts and all local checks we
    >> received
    >> from our customers; these were deposited into our local bank. Then I
    >> wrote
    >> a check on that local bank, payable to our big-city bank, for the total
    >> of
    >> that deposit and included it, along with all the out-of-town checks we
    >> received, in a second deposit slip and mailed them all to our big-city
    >> bank.
    >> The treasurer of the big company had determined that this would cut out a
    >> day or two of processing and transfer time in clearing both the local
    >> checks
    >> and the ones that had to go through the national clearinghouse. (Of
    >> course,
    >> there was no Quicken then. :^} )
    >>
    >> RC
    >> --
    >> R. C. White, CPA
    >> San Marcos, TX
    >> (Retired. No longer licensed to practice public accounting.)
    >>
    >> Microsoft Windows MVP
    >> (Using Quicken Deluxe 2009 and Windows Live Mail in Win7 x64)
    >>
    >> "Andrew" <> wrote in message
    >> news:49ccbca1$0$27784$...
    >> > R. C. White wrote:
    >> >> Hi, Porter - and Jack.
    >> >>
    >> >>> Then why not do just that in Quicken? Record check #1234 payable to
    >> >>> yourself in Back A, then record a deposit in Bank B.
    >> >>
    >> >> No, that's what results in the double accounting.
    >> >>
    >> >> The check from A increases the balance in B. Then the deposit to B
    >> >> increases its balance again (while decreasing A again, of course).
    >> >>
    >> > This one R.C. I really don't understand your post. If I have two
    >> > accounts
    >> > in banks A and B and write a check to myself out of A to put in B as a
    >> > deposit (As I think Porter Smith was advising and what I would have
    >> > also
    >> > suggested), how does this possibly result in 'double' accounting? The
    >> > writing of a check from A has nothing to do with the balance in B until
    >> > I
    >> > put it there as a deposit. One withdrawal, one deposit.
    >> >
    >> > Now it's true we're talking Quicken here, not something like Quickbooks
    >> > which I think does enforce double entry bookkeeping. And there in lies
    >> > what I think might be 'problem' in my understanding what you're
    >> > saying --
    >> > technically, I have no doubt you're right, but again, this is Quicken.
    >> >
    >> > I do realize I am probably wrong in my naive understanding of this I am
    >> > sure, so I look forward to understanding where I'm wrong. But I'm not
    >> > 100% willing to buy off on complexity (a phantom account??) just to
    >> > satisfy some arcane accounting law which might not have relevance to
    >> > Quicken for a small business.
    >> > --
    >> > -------------------------------------------------------------
    >> > Regards -
    >> >
    >> > - Andrew
     
    Laura, Mar 29, 2009
    #9
  10. Jack Hill

    Jack Hill Guest

    In article <gqnsqm$kdp$>,
    "Laura" <> wrote:

    > As mentioned above, just specify the other bank account where you would
    > normally enter an expense account.


    Laura,

    You were able to hit the nail on the head sort of speak. It worked. We
    were able to add "bank B" in the area reserved for expense accounts and
    both sides of the transaction (a transfer in this case) balanced.

    We are very grateful for your expertise. We never knew how to make a
    transfer till now. Yippee!

    Thank you very much
    Jack
     
    Jack Hill, Mar 29, 2009
    #10
  11. Jack Hill

    Laura Guest

    "Andrew" <> wrote in message
    news:49ce3b77$0$22514$...
    > Jack Hill wrote:
    >> Thank you Porter, RC and Andrew,
    >>
    >> I'm working in QuickBooks not Quicken, my mistake. ...

    >
    > Ah ha- Quickbooks! For me now, all bets are off. I have QB for a club
    > that I am going to start using it for when the new fiscal year starts on
    > 7/1/2009, but for now, I do not know much about it.


    You know a lot more QuickBooks than you realise. Once you get used to the
    user interface you'd find QB very similar to Q. Someone once called
    QuickBooks as Quicken on steriods.

    --
    Laura
     
    Laura, Mar 30, 2009
    #11
  12. Jack Hill

    Laura Guest

    "Jack Hill" <> wrote in message
    news:...
    > In article <gqnsqm$kdp$>,
    > "Laura" <> wrote:
    >
    >> As mentioned above, just specify the other bank account where you would
    >> normally enter an expense account.

    >
    > Laura,
    >
    > You were able to hit the nail on the head sort of speak. It worked. We
    > were able to add "bank B" in the area reserved for expense accounts and
    > both sides of the transaction (a transfer in this case) balanced.
    >
    > We are very grateful for your expertise. We never knew how to make a
    > transfer till now. Yippee!
    >
    > Thank you very much
    > Jack


    Glad to help.

    BTW, there is a sister newsgroup to this one called
    alt.comp.software.financial.quickbooks. Since you are using QuickBooks you
    should subscribe to that group as a good source of help. Another great
    source of help is this user forum: http://forums.quickbooksusers.com/.
     
    Laura, Mar 30, 2009
    #12
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