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  #1  
Old 03-03-2017, 11:55 AM
iceman21 iceman21 is offline
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Paying into a reserve account

I operate a flight school and on a monthly basis we pay into an engine reserve account for 2 of our airplanes. It is a separate bank account that we have and I have created 2 bank accounts in QB to track the amount in reserve for each airplane. My question is what steps I need to take to move the allocated reserve funds to the separate bank accounts? I have income accounts for each airplane.

At the end of the whole process I need to cut a check out of my main bank account to our management company to deposit the check in to the reserve bank account.

I've tried it a couple of different way using a clearing account but it doesn't seem to work out properly. I am able to get the funds to the reserve account via journal entries but I cannot figure how to get the funds to a place where I can write the management company a check.

Any ideas?

Last edited by iceman21; 03-03-2017 at 11:59 AM.
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  #2  
Old 03-03-2017, 12:13 PM
iceman21 iceman21 is offline
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On second thought, do I want to debit the Income accounts? That would remove the income from the PnL, no?
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  #3  
Old 03-03-2017, 03:25 PM
Lorin Browning Lorin Browning is offline
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Use a general journal entry debiting one bank account (the one receiving the money) and crediting the other (from which the money comes). That affects only balance sheet accounts and does not affect income statement accounts.
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Old 03-04-2017, 07:20 AM
iceman21 iceman21 is offline
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I would love to just do it via journal entry but I need to write a check to our management company, which is just a holding company, but the bank account is in that companies name.
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  #5  
Old 03-04-2017, 01:43 PM
Lorin Browning Lorin Browning is offline
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Just write the check. Transactions between bank accounts affect only balance sheet accounts.

If you are using the Write Checks screen, just enter the account number of the bank that is getting the funds. Under the Expenses tab, for Account enter the account the other bank account.

Don't let QuickBooks confuse you by having that tab labelled Expenses. Contrary to the QuickBooks terminology, not all debits are expenses. And not all credits are revenues.
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  #6  
Old 03-06-2017, 12:31 PM
iceman21 iceman21 is offline
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Thank you very much! Worked like a charm!
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