Transfers Between Checking and Savings

[John Ralls]

On Mar 15, 2013, at 7:24 AM, Mark Phillips <mark at phillipsmarketing.biz> wrote:

> I make periodic transfers from savings to checking. However, I just make
> the transfers as deposit in checking and withdrawal from savings. When I
> run an income/expense report, those transfers do not show up, obviously.
> So, I created an income account called Transfers from Savings, and whenever
> I transfer money I deposit in the checking account and credit the income
> account. But what is the corresponding transaction in the savings
> account? Or, is there a better way to do this?
> 
> The reason I want to do this is that I am managing my elderly parents
> accounts, and the other siblings want to see detailed financial reports.
> Since my parents are living off their savings and a few other income
> sources, I want to show the transfers from savings as income for them. Is
> there a better way to do this?
> 
> Also, once I figure out how to show the transfers as income, (unless there
> is an accounting reason not to do this!), how do I change the reconciled
> transactions that go straight from savings to checking without the
> intermediate income accounts?
> 

>From an accountant's (and therefore Gnucash's) viewpoint, this is wrong. A transfer between asset accounts has no effect on equity and so is neither income nor expense.

If you want a report showing the flows between the two, use a Transaction Report. In the Options dialog on the account tab select the savings account and in the filters tab select the checking account. Adjust the rest to your needs.

Regards,
John Ralls