How to categorize transfer between Checking acct to savings acct

Sakthivel's Avatar


26 Jan, 2023 03:43 AM

I want to understand how the transfer between checking and savings accounts is categorized. It is not an income at the same time, not an expense too.

  1. 1 Posted by Stuart Beesley ... on 26 Jan, 2023 03:59 AM

    Stuart Beesley (Mr Toolbox)'s Avatar

    Just enter the destination account in the category field of the txn in the source account.

    Transaction in checking, category savings.

  2. 2 Posted by dwg on 26 Jan, 2023 04:28 AM

    dwg's Avatar

    I'm a fellow customer.

    Transfers are not categorized they are just a transfer between accounts.

    If we go back to accounting, upon which Moneydance is based, everything is really just a transfer between accounts, or if you like registers.

    To take this concept to Moneydance, Categories are really just special types of accounts, either of Income or Expense type, hence it is how the "account" has been defined that determines if an amount has been categorized or if it is a transfer.

  3. 3 Posted by Stuart Beesley ... on 26 Jan, 2023 04:59 AM

    Stuart Beesley (Mr Toolbox)'s Avatar

    An interesting sub-question: So what method(s) do people use when then want both an account to account transfer AND for that to trigger as an income/expense...

    Investment account is paying out money for pension
    In reality this gets paid into bank account

    If it's an Xfr then won't appear on Income report
    Seems a bit daft to put the first Debit Xfr to a junk account and then have a duplicate deposit txn in the bank account with category Income...


  4. 4 Posted by dwg on 26 Jan, 2023 05:30 AM

    dwg's Avatar

    You cannot do it in one transaction. You have one source and one destination, that is a fundamental of accounting, so what you are looking for is to have one source and two destinations, as if the transaction has three legs rather than two and you just cannot do that, it is invalid in accounting and impossible to do in Moneydance.

    I use a category set up for the purpose, and then I use either two transactions or a single split transaction to post the entries.

    For your transaction Stuart, given it is an investment I could do a sellXfr transaction with the destination of Pension Drawdown, then a deposit transaction in the bank account with a category of Pension, if there is a tax I would set the deposit up as a split transaction in much the same way as you set up a salary/wages deposit.

  5. 5 Posted by Stuart Beesley ... on 26 Jan, 2023 05:50 AM

    Stuart Beesley (Mr Toolbox)'s Avatar

    Thanks.. Yes it's a shame that it requires multi txns to do this

  6. 6 Posted by dwg on 26 Jan, 2023 05:55 AM

    dwg's Avatar

    It is a side effect of having software that follows rules like those in accounting.

    There are always swings and roundabouts in any approach.

  7. System closed this discussion on 27 Apr, 2023 06:00 AM.

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