Transfer dates between accounts

tj.trace's Avatar

tj.trace

10 May, 2018 12:28 PM

Greetings, when I transfer funds between accounts at my (major US) bank, the transaction will clear on the sending account a day or two before it clears on the receiving account.

However, MD seems to insist that the transfer transactions must have the same date in both accounts. This causes confusion in MD because one register or the other will be inaccurate compared to the bank statement.

I'm not prepared to have MD out of sync with my bank accounts. I could - and have - created separate transactions, but all I'm doing is bypassing MD's transfer feature.

What I want to do is create a transfer transaction which is linked between accounts, but respects my manual date input on both sides.

How can I get there?

Thanks.

  1. Support Staff 1 Posted by Henry on 11 May, 2018 07:11 AM

    Henry's Avatar

    Hi,

    Moneydance will use the dates that have been provided within the downloaded data - there is no automatic way for Moneydance to use different dates from those provided with the download.

    Within Moneydance, any transactions between accounts must have the same dates on both sides of the transfer. Even if these transactions did import with the correct dates shown, you'd need to make a change so that the dates match, to 'link' these transactions within Moneydance.

    To get around this, you could create a "processing" account to represent when the funds are in suspense. You could transfer from Account A to the 'processing' account on one date. Then another transfer from 'processing' to Account B a few days later.

    Henry
    Infinite Kind Support

  2. 2 Posted by tj.trace on 11 May, 2018 12:16 PM

    tj.trace's Avatar

    Thanks, Henry, for your thoughtful reply. I appreciate it.

    To be clear, it's the posted/cleared transactions which have different dates.

    Now that I've thought further about it, I've tried it between two accounts at different banks --- and I now realize that it's not just my bank that exposes the problem. In many situations, a transfer between accounts seems likely to cause a date/time deviation between the MD register and the institution's transaction log. The account on one side or the other will be in error.

    I wish you guys were linking on something other than date/amount - maybe a "linked transfer with transaction (id)" record, or something like that. I won't hold my breath ;) I realize that it's not trivial to modify the database and functions to that extent.

    Please help me understand if my surrender is appropriate given the situation, or if you have further advice to give, please do so. Thanks again.

  3. 3 Posted by dwg on 11 May, 2018 10:47 PM

    dwg's Avatar

    I'm a fellow user.

    Moneydance follows accounting rules in this regard, hence the same date on both sides of the transaction, if it did not have the same date the money has to go somewhere for these intervening days - consider if you created a report for one of those intervening days the funds have to be somewhere, you cannot just lose them for a while.

    What is happening in the bank transfer is first first bank debits your account at the time, these funds go into a general ledger account at that bank to facilitate the transfer to the second bank, the second bank receives these funds in due course and then posts them from its general ledger to the customer's account (this is a very simplified explanation of the clearing system) So for some time the funds are in the banking system.

    The only way of handing this in a program like Moneydance is to do along the lines that Henry suggests and have a suspense Account/ Transit account or whatever you like to call it and have the funds move through that account, that account will be mirroring having the funds in the banking transfer system.

  4. 4 Posted by tj.trace on 12 May, 2018 01:27 AM

    tj.trace's Avatar

    dwg, thank you. Something's not clicking with what you and Henry are telling me. I'd like to restate my question, please.

    On day one, account #1 transfers $100 to account #2. Account #1 immediately shows the transaction in pending status.

    On day two, account #1 shows the transfer in cleared status. Account #2 shows it in pending status.

    A weekend passes.

    On day six, account #2 shows the transfer in cleared status.

    Looking at each bank's online transaction detail, account #1 shows its outbound transaction in cleared status on day two, and account #2 shows the inbound transaction in cleared status on day six.

    However, if the transaction was recorded in MD as a transfer to an account, each transaction appears in its respective MD register on the same date. That's inaccurate, and out of sync with the online transaction details. Editing the date for one transaction or the other changes the date of both transactions.

    The reason I've restated is I think you and Henry are giving me good advice which will take care of such discrepancies while the monies are in motion. Please let me know if I've misinterpreted this.

    I'm not too concerned with the monies while they're in motion. What I want is for a cleared transfer transaction to show in both MD accounts on the actual date that it cleared each financial institution account. Can I get there?

    Thanks --

  5. 5 Posted by dwg on 12 May, 2018 02:33 AM

    dwg's Avatar

    I'm a fellow user.

    The advice given will handle both funds in transit and the different dates.

    Banks mark the status of funds as cleared and uncleared, there is no distinction in Accounting. The fundamental rule in accounting is that for every credit there must be a corresponding and equal debit this goes as far as to include dates.

    Thus if you want to echo the banks cleared date status there are really only two ways, the way given above by using a transit account or by making separate transactions for the withdrawal and deposit using a category created for the purpose - essentially the same approach but using a category rather than an account. A single transfer transaction with different dates on each side break the double entry accounting rule

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