No it is not possible to just make money disappear.
You can either take the approach you have outlined or you can try making the account inactive and remove it from the various displays to see if that meets your needs.
To make an account inactive open its register then select the menu item Account --> Edit Account Info check the boxes Hide on Summary page & Inactive Account. You can remove an account from the side bar by right clicking on it and selecting Remove for Side Bar.
Dang, I have a number of those accounts that I tracked over the years. I recall there was a way to it in Quicken when I used that program. Something like transferring money back to the same account would zero it out. It didn't make a whole lot of sense.
That is why I suggested marking the account as inactive. All transactions are still present but the balance is shown as 0 in many places, but you still have to exclude it from certain reports. The only real other way to do it is as you have done - create a specific category for the transfer of funds and to exclude it from reporting.
Once Money is in a Moneydance data set it is in there.
Ethan on 29 Jul, 2020 09:26 PM
Just to add some explanation to the above suggestions: The reason money can't 'disappear' in Moneydance is that it is based on double-entry bookkeeping, a foundational system of modern accounting. All transactions must have two accounts associated with it (or an account and a category): where the money is coming from, and where it is going to. In this closed system, there can't be money that comes out of one account and goes nowhere. That would indicate a serious problem with the accounting. Especially in the era before computers when people were doing this in ledger books, this would be one of the main ways to catch money 'disappearing' in a bad way.
I believe in Quicken there was a way to make invalid transactions to allow things like this to happen, since we sometimes seem to encounter the mess they create when people try to import their data from that program. Those transactions are also logically inconsistent. Even if one could create a transaction where money came back into the same account, that should just put things back where you started. You're correct that those transactions don't make a whole lot of sense!