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How to Transfer from one bank to another?

 
 
Jack Hill
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      03-26-2009, 04:51 PM
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?
 
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Porter Smith
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      03-26-2009, 07:19 PM
Jack Hill <(E-Mail Removed)> 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"
 
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R. C. White
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      03-26-2009, 09:44 PM
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.)
(E-Mail Removed)
Microsoft Windows MVP
(Using Quicken Deluxe 2009 and Windows Live Mail in Win7 x64)

"Porter Smith" <(E-Mail Removed)> wrote in message
news:Xns9BDA9BF50E77Cmyport2000yahoocom@127.0.0.1. ..
> Jack Hill <(E-Mail Removed)> 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"


 
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Andrew
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      03-27-2009, 11:46 AM
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


 
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R. C. White
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      03-27-2009, 01:12 PM
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.)
(E-Mail Removed)
Microsoft Windows MVP
(Using Quicken Deluxe 2009 and Windows Live Mail in Win7 x64)

"Andrew" <(E-Mail Removed)> wrote in message
news:49ccbca1$0$27784$(E-Mail Removed)...
> 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


 
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Jack Hill
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      03-27-2009, 02:48 PM
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 <(E-Mail Removed)>,
"R. C. White" <(E-Mail Removed)> 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.)
> (E-Mail Removed)
> Microsoft Windows MVP
> (Using Quicken Deluxe 2009 and Windows Live Mail in Win7 x64)
>
> "Andrew" <(E-Mail Removed)> wrote in message
> news:49ccbca1$0$27784$(E-Mail Removed)...
> > 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

 
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Andrew
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      03-28-2009, 02:58 PM
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


 
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Andrew
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      03-28-2009, 03:00 PM
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


 
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Laura
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      03-29-2009, 01:24 PM
"Jack Hill" <(E-Mail Removed)> wrote in message
news:(E-Mail Removed)...
> 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 <(E-Mail Removed)>,
> "R. C. White" <(E-Mail Removed)> 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.)
>> (E-Mail Removed)
>> Microsoft Windows MVP
>> (Using Quicken Deluxe 2009 and Windows Live Mail in Win7 x64)
>>
>> "Andrew" <(E-Mail Removed)> wrote in message
>> news:49ccbca1$0$27784$(E-Mail Removed)...
>> > 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


 
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Jack Hill
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      03-29-2009, 07:11 PM
In article <gqnsqm$kdp$(E-Mail Removed)>,
"Laura" <(E-Mail Removed)> 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
 
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