How to transfer funds from one one class to another class in QBO

I use QBO for our church accounting. I need to transfer funds from our general fund to our designated building fund. I use classes in QBO. Both funds use the same bank account. How is the best way to accomplish this?

Comments for How to transfer funds from one one class to another class in QBO

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QuickBooks Funds Transfer-Corr

Sorry, the last line of the entry should be 20-BldgFund, not 10-GenFund

QuickBooks Funds Transfer

When you transfer funds, you are in effect, creating income in one fund at the expense on another fund. Therefore, you need to create an income account to register these. By creating these accounts, the General Fund will show a contra income (a debit) and a reduction in assets (cash) and the Building Fund will show income (a credit) and an increase in cash. The consolidated statements, however, will show no change in income or assets. Here is an example entry:

Account Fund Acct Type DR CR
100-1stBank 10-GenFund Asset $1000
900-FundXfer 10-GenFund Income $1000
900-FundXfer 20-BldFund Income $1000
100=1stBank 10-GenFund Asset $1000

Tracking Funds in QBO
by: Vickey

It would depend on how you were tracking those funds in QBO. I use a combination of classes and equity accounts.

The classes track the income and expenses in each fund. You can create a Statement of Activity (Income Statement) for each fund and see what come in and what came out "within a certain time period".

So ... I set up equity accounts to track the "balances" of those funds and show on the Statement of Financial Position (Balance Sheet).

IF you are just using classes, you could do a journal entry and debit whatever income account you want and assign the "Building Fund" class. Then credit the income account you are "transferring" those funds from (it can be the same income account on both lines) and assign the General Fund.

That would "move" those funds from where they were originally assigned to where you are wanting. Just note that you will have to pull a Statement of Activity by Class report to cover that time period.

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