Whenever withdrawing funds from a savings account to pay a bill, how would you categorize the trnsac

umpire73

I pulled monies from a savings account and then used it to pay a bill. When transferring it from on account to my checking account, how should I categorize it. The system automatically categorized it as personal income. Is that right?

jacobs

Assuming the money you moved wasn't in a retirement account, there should be no entry to Personal Income. If you have a savings account, and you moved money to your checking account, and paid the bill from the checking account, you should have two transactions:

1) A Transfer from Savings to Checking. Transfers are a cash flow transaction, and have no category.

2) A Payment transaction from your Checking account, using the correct category for the bill you've paid.