Manual Journals - Code to bank accounts.
Enable us to include bank transactions as part of journal entries, which will show up in bank reconciliation to be matched.
Often journal entries have bank transactions as part of entry (for example, property purchase closing statement and payroll transactions)
Right now you have to find workarounds (i.e. clearing/wash accounts) to post these entries accurately.
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Maclane Schloss commented
100% I have cash flowing in and out of cash accounts (loans, and transaction accounts) relating to many different people. Not keen to use wash accounts (such as suspense) but a lot easier than using "create transaction from xero bank)
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Kyle Chirpich commented
Agreed, it is incredible that journal entries cannot be made against bank accounts, especially when you cannot use "Spend Money" transactions between bank accounts. You can apparently do JE's in quickbooks as well as several other accounting packages I've used. This is a classic case of neutering functionality to protect the dumb.
In my use case, my mortgage payments show up from my bank account as a single payment that is the sum of principal and interest I owe for that month. If I have the loan set up as a bank account as well, my only option appears to be to process the payment as 2 transactions: a transfer to move principal from my checking account to the loan, and a spend money to move the interest from my checking account to Interest Expense. Processing this as two transactions will throw off my bank reconciliation. If journal entries were allowed on bank accounts, then I'd be able to do the transaction in a single JE.
If I set up the loan as a non-current liability, then I can process the payment as a single spend money with 2 line items, but then the loan doesn't show up on the dashboard and I can't import statements to it.
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Melita Proebstl commented
It would also be great if we could set up non-bank accounts that can be reconciled. For example, non-Bank accounts such as Petty Cash and money being held in trust for groups in a not-for-profit organisation would be a great addition.
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Mandy Candy commented
It really is vital to be able to journal to a "bank account" - having a cash account set as a bank so transfers can be made i.e cash banked etc but there are various factors that need journalling too. We should be allowed to journal to all accounts.
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Jeffrey Gillingham commented
to the comment below - we pick up any errant entries in the bank reconciliation when we do it end of month.... thats what that is for.
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Jeffrey Gillingham commented
this is so stupid that you can no longer j/e to a bank account. yeah, so its "fraught with danger." Thats why I went to school - so I could avoid the danger and know how to fix it. You guys have taken something we've been doing for 5+ years and limited it and screwed us up. How is Gusto supposed to journal entry to the bank for payroll anymore? Now we have to clear the journal entries in a clearing account as an extra step? This is really dumb - I'm sorry. Back to QuickBooks for me and my clients.
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Anne Kennedy commented
Being able to journal direct to a bank account can be fraught with danger and could well throw the Reconciliation out at later date.
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Freya Pieroz commented
If anything is going through the bank account, I create it as a bill or invoice.
Eg. a property purchase closing statement is a bill for the value of the property and the closing costs, with the bill paid from the loan, the prepaid deposit, and the payment leaving the bank account.
I'm quite happy *not* having this ability, as I have been yelled at in the past by accountants who journaled to the bank account without a corresponding transaction having gone through the bank account (as they were taught to do at university), and then were upset that the value of the bank account in the accounting system didn't match the bank statement.