How to properly apply a single bank account transfer to multiple sub accounts within another bank account

Hello. My accounts are setup so that I have a single sweep account that receives all deposits.  I have automatic transfers setup from this bank account to other bank accounts.

I have sub accounts setup, in QB only, under the bank accounts receiving the transfers that I want to "move" this money into because it is earmarked for different purposes. 

Example Chart of accounts: 

  • Sweep account 
  • Savings account 1
  • Savings account 1: Tax Reserve
  • Savings account 1: Insurance Reserve

Auto transfer is setup to transfer $100 from Sweep account to Savings Account 1.  This happens in reality in the bank accounts and is what shows up on the the statements. 

However, I want to further divide that $100 transfer into $50 to Tax the sub account and $50 to the Insurance sub account

The second two transfers are virtual.  Meaning they only happen in my books, not my bank account.

I have identified 2 ways of approaching this and I am not sure which is correct.

Option 1 - setup 2 separate $50 transfers from the Sweep account to Savings Account 1 and then apply the deposits to the sub accounts when reconciling.

Option 2 - set up 1 $100 transfer to Savings Account 1 and then make 2 additional transfers from Savings Account 1 to the Savings account 1 sub accounts (ie. $50 to insurance and $50 to tax)

I think either will result in the correct balance in the parent account but I am not sure how this will impact reporting and reconciling.  I have read that only the party account should be reconciled with the bank account.

What is the best way to go about this?

Thanks.

Answer

This is Separate Transfers: "However, I want to further divide that $100 transfer into $50 to Tax the sub account and $50 to the Insurance sub account"


The Transfer screen doesn't provide for Splits. If you want it as one Entry with Splits, use Write Check. Top left = Source account. Expenses tab = Target accounts.

Since rebalancing subaccounts is Virtual, it doesn't matter which or how many. Just get the end result you need.

If this was from Real Checking to Real Savings, for example, you would need the Function as transfer or check to match the total of any One Activity that happened in reality. Example:

Taking $50 times 2, or taking $100 once, in reality, would drive which entry method to use.

"I think either will result in the correct balance in the parent account but I am not sure how this will impact reporting and reconciling.  I have read that only the party account should be reconciled with the bank account."


The Parent Account never gets anything directly posted to it and is used only to reconcile, as it is the Umbrella register for all subaccount activity, rolled up.


I have an attachment of the Banking for a Town, when they were using only Pro; they should have been using Premier all along, so that Class Tracking worked in their favor. They never needed these subaccounts, if they had started with Premier. Once we moved that file to Premier, we could merge all of their micro-managed accounts, as you also see in the P&L by Class, attached example.



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