Transfer money between accounts

Fund Accounting, Accounts Payable, Accounts Receivable, Payroll

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Old and still learning
Posts: 2
Joined: Wed Sep 02, 2015 2:20 pm

Transfer money between accounts

Post by Old and still learning »

Is there a way to transfer funds from one account to another that would allow Fund 1 Cash to be transferred to fund 2 Cash, interest income, and staff loan?
Behind the question-From an employee’s paycheck we create a liability for the amount held from the check to pay the monthly payment back to the F2 fund.

The first transaction originates from Payroll and is in Fund 1
F1 1121- deposit account 203.33 Debit
F1 2110- Loan to staff liability 203.33 Credit.

The actual money for the loan came from Fund 2. This 203.33 must be transferred to Fund 2 to repay the loan plus interest.
F2 1212 deposit account- 203.33 Debit
F2 –1311 Loan to staff 200 Credit
F2- 4652 Interest Income 3.33 Credit

The missing link is getting the amount held in F1 to F2.

Is the simple solution:
F1 1121- deposit account 203.33 Credit
F1 2110- Loan to staff liability 203.33 Debit
F2 -1212 deposit account- 203.33 Debit
F2 –1311 Loan to staff 200 Credit
F2-4652 Interest Income 3.33 Credit

Or do I need a transfer from F1 to F2, and if so, how do I transfer to an income and 2 asset accounts (Deposit up and Loan Receivable –down)
I do not think this plays into the answer, but Fund 2 is set up so all special funds have their own fund balance account with, income, release and expense accounts for each separate fund. :?

NeilZ
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Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
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Re: Transfer money between accounts

Post by NeilZ »

Why did you create the loan in Fund Account 2, isn't the money coming out of the operating fund anyway?
Neil Zampella

Using PC+ since 1999.

Old and still learning
Posts: 2
Joined: Wed Sep 02, 2015 2:20 pm

Re: Transfer money between accounts

Post by Old and still learning »

The LOAN money came from an exchange of assets in F2. The asset account -cash for F2 went down and the asset account-accounts receivable staff loan- in F2 went up.
The REPAYMENT transacted in F1 because that is the normal operating fund that includeds payroll. The repayment creates a liability for us in F1 for the amount that was received from the employees check.
The amount withheld for the repayment for the loan I would like to transfer to the F2 fund to reduce the amount owed on the loan in F2, increase the cash in F2, and recognize the interest income in F2 all which are part of the transaction.

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