In QBO we have two checking accounts (two separate businesses). Sometimes money is transferred from one account to another that needs to be categorized so it will hit a certain liability or expense. However, because QBO is only a double entry accounting system, it won't let me categorize it, it will only let me record the transfer and match the transfer between the accounts. Does someone know what type of a journal entry or other action I can do so that it doesn't throw off the balance in each of the accounts? I'll give an example: Rent for one of our properties was paid to checking account A. It should have been paid to checking account B which is the account we use to handle money for our properties. I need to categorize that rent to a specific property so that it will show up on the P&L. There is no option to add a category when matching bank transfers in QBO. I assume it's some type of journal entry but I've yet to figure out how to do the journal entry so that checking account A shows the transfer going out, checking account B shows the transfer coming in and that same amount is also showing as a deposit for the rental property that paid the rent and the balance of each account is correct. Thanks in advance for any help!
Quickbooks Online/Transfer/Journal Entry Question
How to Record a Journal Entry in QuickBooks Online
Navigate to the journal entry feature in QuickBooks Online.
Fill in the date and journal number.
Enter the correct accounts in the “Category” column.
Enter the debit and credit amounts until the entry is balanced.
Add a description and save.
I hope this will help.
Thanks for the response! I'm able to record a journal entry in QBO, I just haven't been able to make it work so everything balances because it's 3 different accounts that are involved.
I tried doing 2 journal entries.
The first was to receive the rent. I debited checking account A and credited my rental income account with the property location noted. I then set up a liability account called rent in trust liability and in the same journal entry I debited rent in trust liability with the property location noted and credited the same trust liability account.
The second journal entry I transferred the funds back. I debited the checking account B (which is where the money should have been deposited in the first place and the account under which my rental properties fall) noting the property location and I credited checking account A. I then debited the rent in trust liability and credited it back with the rental location noted.
This balances out checking account A and my rental income account. However, it shows an extra deposit in checking account B.
Do you have another way to do it so all 3 accounts balance out?