[jafruscio]

The owner of my company is constantly transferring funds between companies/bank accounts. When transferring funds within the same company I was using the funds transfer screen in QB Online and I believe that worked well. What I have questions about are inter company transfers including A/P and A/R. Here is an example..

Transfer - $1000 from Company A Escrow Acct to Company B Escrow Acct

From the Company A side, fund transfer screen:
From acct: Company A Escrow Acct
To acct: Notes Rec - Company B

From the Company B side, fund transfer screen:
From acct: Notes Pay - Company A
To acct: Company B Escrow acct

Is this correct? I understand that I need to enter this in QB on both sides. When I was doing the second half of the transaction, the balances were going in the opposite direction than what I wanted. So, the amt in Company B Escrow acct was decreasing when it should have been increasing because funds were going in. Could you help me to see what I am doing incorrectly?

When I think of the journal entries for each, I think they are:

Company A side:
Debit - Notes Rec Company B
Credit - Company A Escrow Acct

Company B side:
Debit - Company B Escrow Acct
Credit - Notes Payable Company A

Any input you have would be greatly appreciated! Thanks

[morgaine300]

Well, I don't use Quickbooks. Most accounting software is similar, and I've seen screenprints of it, and it looks much like a lower level sort of Peachtree and I imagine is much alike. However, I can't help with details when it comes to Quickbooks.

I can help with entries though. However, I'm not understanding the situation here. Are you actually trying to do the books for both of these companies? I don't mean their escrow accounts - I mean are you actually doing the books of each of these companies. (For instance, how a CPA firm would do the books for many different companies.) Or are you the escrow company, the actual holding company for the transfer of these funds, and you're doing your own company's books?

I hope you see what I mean there, because it will make a difference. Because something just seems funny about what you're doing, but I may be misinterpreting.

Also, I'm not too familiar with how an escrow account works. So did A originally pay into an escrow account funds that are supposed to end up in an escrow account for B, until B gets paid them? For instance, A buys a car from B off eBay, so A puts the funds into the escrow holding company. That gets transferred over to B's account. At some point then B gets paid the money. That sounds like what you're saying, but the entries don't really reflect that.