Hi Bec_NWD,
Thank you for your enquiry.
To clarify, you can use either Transfer Money or Spend Money and for that matter Receive Money to show the imact of money being moved from one Bank Account to another Bank account.
The double entry transaction created by the system when any of these options is used is the same.
In Transfer Money:
The Asset account selected in 'Transfer Money From' field is Credited (reduced) and the 'Transfer Money To' account is Debited (increased).
As David pointed out, there are some restrictions to the Transfer Money function, the main one being that it cannot be edited.
In Spend Money:
The Bank account selected as the 'Pay from Account' is Credited and the Bank Account selected as the allocation account (under the Acct No.) column is Debited. In your example you would select the day-to-day account as the Pay from account and the 'Bank account for loan direct debit' as the allocation account.
In Receive Money:
For the same transaction you would use the 'Bank account for loan direct debit' as the 'Deposit to' account and the day-to-day account as the allocation account.
Receive and Spend Money is treated based on which account's point of view is used. The effect is the same either way.
As for effect on reports, the first step of moving money from one account to the other does not impact any other accounts. It is only showing the movement of funds. It is the final Spend Money transaction to show the actual Direct Debit from the Bank account for loan direct debit that is recording the Expense / or reduction of Loan Liability. So this Spend Money will need to have the Pay from as the 'Bank account for loan direct debit' and the Allocation account as the Liability account for the Loan that is being paid off.
I hope that helps. Please don't forget to vote on this idea if you would like the ability to edit Transfer Money transactions.
Regards,
Suja
MYOB Support
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