How do I transfer money from one checking account to another

[jfoster182]

I am needing to write a check to transfer money from one checking account to another. How do I correctly transfer this. The accounts are already set up I just don't know how to do it right! Also..when writing the check what do I put to allocate the funds to?

The following are the account #'s we have set up

01-1110-000 Checking account to transfer from
01-1111-000 Checking account to transfer to
01-4620-000 Income Transfer account

Thank you!
Jody Foster

[Zoe]

If the checking accounts are in the same fund (both in the 01 fund) there is no need to incorporate an income transfer account. You would simply:

credit: 01-1110-000 (to decrease)
debit: 01-1111-000 (to increase)

[ghaislett]

I do monthly transfers from one checking account to another. These accounts are in different funds. How would I do that? My first checking account is 1110 and the second is 1115. The funds are 01 and 02. To transfer from 01-1110 to 02-1115:

01-1110-000 cr
01-4620-000 db

02-1115-000 db
02-4630-000 cr

Is this correct?

[Kristi]

ghaislett,

You are correct with the way you made the entries.

Your error is that your designated transfer number needs to be the same in all your funds...ie. all 4620

Unless that was just a typo.

I read this year that just like when people ask to write a check that they fill out a check request form...you should do the same when you are asked to transfer money from one account to another. Fill out a Fund to Fund Transfer Request. I now do this and love it because not only does this protect me with proof of the request, it also helps me see my entry on paper & correct any error before I enter it into the computer. I do this also for my monthly transfers that are not requests.

Kristi

[Matt]

Kristi--I would kindly disagree--the transfer account does not need to be the same in all the funds. What if the church has multiple accounts that it makes transfers from (i.e. checking accounts, savings accounts, CD's, etc.)? Having separate transfer accounts would enable one to see what the source of the different transfers were when they run the income and expense statements for the fund. It just depends on what the user wants to see.

Ghaislet--if you are using version 9, you may want to consider using the 9000 series accounts to do your transfers with, rather than the 4000 sereis accounts. Version 9 has a capability to keep these transfers from showing up as income and negative income on your income and expense statements. This can be handy, depending on your situation.

[Kristi]

Thank you for the clarification.

I was using the PowerChurch May 7, 1999 post "How do I transfer money from one fund to another?" as my reference.

That was my guide for setting up my accounts 2 years & how I have been transfering from my checking to savings account.

I understand your explanation and will also take your advice.

Kristi

[Kristi]

Matt,
I am preparing to begin using the 9000 series for my transfers. My problem is I dive into numbers and later regret my choices. Can you give a sample or suggestion.

Currently I have:

Bank A for checking accounts
Bank B for savings account

I transfer between Banks A & B frequently

Now we are working with Bank C preparing to transfer all of cash from Bank A into, but there will be a period of time...waiting for checks to be printed at new bank & all checks to be cleared from the old bank.

Are you suggesting that I create a separate transfer account for each bank?

Also we have a 9 year building campaign. Do I need a separage transfer
account in the Building Fund than I use from the regular pledges in the Operating Fund. I currently transfer from Building to Operating and then write my check to the bank...this makes my posting to assets easier down the road.
From:
Building Fund 16 Checking 16-1111 CR
Designated Funds Transfer 16-4630 DR

To:
Operations Fund 01 Checking 01-1111 DR
Deisgnated Funds Transfer 01-4630 CR


Would the new transfer be like 16-9001 DR
01-9002 CR

Thank you~Kristi

[Matt]

Kristi,

If the checking and savings accounts are both in the same fund, it isn't necessary to run these transactions through transfer accounts, unless you want to see the cumulative totals of the transfers on your Income and Expense Statement. You can make an entry such as the following:

DR 01-1210-000 Bank B
CR 01-1110-000 Bank A

If the transfers are going to separate funds, you would make an entry such as the following:

DR 01-9210-000 Transfers to Savings - Bank B
CR 01-1110-000 Checking Account (Bank A)

DR 02-1210-000 Savings Account (Bank B)
CR 02-9010-000 Transfers From Checking - Bank A

On your building fund transfers, if you use the 9000 series transfer accounts, the transfer entries should look something like the following:

DR 16-9220-000 Transfers to Operating Fund
CR 16-1111-000 Checking Acct.

DR 01-1111-000 Checking Acct.
CR 01-9020-000 Transfers From Bldg. Fund.

Hope this helps.

Matt

[Kristi]

Thank you Matt. This helps tremendously. ~Kristi