How can I categorize and match transfer fund transactions between two accounts?
When you transfer money from one account to another account, say from Business Checking to Business Saving, it is a withdrawal in Business Checking and a Deposit in Business Saving. In Zoho Books, under the Uncategorized Transactions tab, you’ll find a Withdrawal bank feed in the Business Checking account and a Deposit bank feed in the Business Saving account. To avoid duplicates, reconcile the two transactions by following the steps mentioned below or the GIF.
Navigate to the Banking module, select the account from which the money was transferred.
Go to the Uncategorized Transactions tab and select the Withdrawal bank feed from the list of uncategorized transactions.
Select the Categorize Manually option on the right side.
Select the Transfer To Another Account in the Category section.
Select the account to which the money was transferred and fill in the other information.
Click Save and this transaction will be categorized.
Immediately, a manually added transaction will be automatically created in the other account to which the money had been sent. Now, navigate to the other account to which the amount was transferred.
Go to the Uncategorized Transactions tab and select the Deposit bank feed.
Find the categorized transaction from the list of Possible Matches on the right side and select it.
Click Match and the uncategorized transaction will be categorized.
Also, the manually added transaction which was automatically created will be matched.