User Support Forum

We use transfer accounts (9000-9999 range), but have recently come across a question while closing months and running the "trial balance" report. On the 8.5 version, I was told that I needed a four part transaction in order to transfer between funds. But on version 9, I have simply used my transfer accounts (which are set up so every fund has both a "transfer out to" and a "transfer in from" fund to/from every other fund except itself), as follows.

If I want to transfer $500 from General Fund (01) to Building Fund (05), this is what I have been doing:

In Fund Accounting "enter transactions," debit General Fund's "transfer out to 05" account and credit Building Fund's "transfer in from 01" account.

This works. But I just noticed, when running/viewing the trial balance report, that individual funds where I had transferred in or out were out of balance by the amount that I transferred. At the end of the report, all the funds balanced to zero, but some individual funds were "off." Is this okay, or is it a problem? Is there a better way?

Thanks for your help -- I look forward to hearing back!

Laurel
Williamstown Assembly of God
Williamstown, KS

It's still a 4-part transaction in v9, you just have a special transfer account to use instead of a regular income account. The transaction in this case would be: Credit General Fund bank account, Debit General Fund Transfer. On the other side, Debit Building Fund bank, Credit Building Fund Transfer. The reason you're out of balance is because you've got a credit in one fund and a debit in the other. That's what the 4-part transaction accounts for.

Great -- makes sense, thanks for the help!

Laurel
Williamstown Assembly of God
Williamstown, KS