I have two bank accounts that are reconciled and updated online. I transfer money between these two accounts. For example, Account A transfers an amount X to Account B. I make these transfers directly in the banking app.
When I update the accounts in KMyMoney, I correctly see these transfers. However, they don’t have any category. Since, for me, this transaction is neither income nor expense, I categorize it by using the recipient account.
Account A has transferred X euros to Account B, so I categorize it under Account B. However, here’s the issue: I now have both the transfer from the bank (from the online reconciliation) and my manual entry. This creates a double entry, meaning double income, and the final balance no longer matches.
How can I properly edit the transfer after the online reconciliation so that it is recognized as a transfer? Will KMyMoney automatically recognize the transfer over time?
It sounds like you just need to “match” the two transactions. The merges them into a single transaction, while keeping both memos and other features that don’t need to be identical to allow the merging. I suspect the imported transaction is showing as an income or expense transaction, depending on which account it is in - you probably need to edit that transaction to change whatever category was assigned to the other account. Then you can merge the two transactions so the amount is not counted twice.
And once you have “matched” the two transactions which merges them as @ostroffjh pointed out, don’t forget to “accept” the match which cleans up the match information (not needed anymore). In the future, KMyMoney may even be able to automatically match the transactions during import.
One nuance is though, when the two transaction imported into account A and account B have a different post dates. In that case, simply create an asset account T and create two transactions: A->T and T->B. This will allow to assign different post dates to the two transactions. BTW: T as in transfer and its balance should be zero most of the time.
Thank you both for your help. Yes, the approach works and following your instructions, I can merge the two transfers, and the final amount no longer changes. Thank you very much for that. My hope is now that KMyMoney will automatically handle this merging for the next transfers.
and its balance should be zero most of the time.