Recurring Transfers, which side to use for setup?

DannyB · September 28

I was just reviewing and updating recurring transfers and noticed that some of my transfers are set up from the sending account side and some are set up from the receiving account side.

In the interest of consistency, I want to set them all up in the same direction, so-to-speak.

My question is whether or not there is a preferred direction?

Setup recurring transfers on the sending account side?
Setup recurring transfers on the receiving account side?

Thanks.

SRC54 · September 28

I've wondered at times as well. This is how I do it.

If I initiate the payment from my checking account (using my bank's bill pay), I do it from that bank.

But if I initiate the payment from the credit card's site, I start it in the credit card account. Lately, this has been my default because the credit card will credit it first and my bank will get the debit it the next business day.

Does that make sense?

RobWilk · September 28

It probably does not matter because in the cash flow forecast, you should see a separate scheduled transaction in both accounts. However, I personally tend to originate the transactions in the "sending"(money out) side.

DryHeat · September 28

@DannyB

I agree that recurring transfers are usually unimportant for the Spending Plan, which is the part of Simplifi that I pay the most attention to.

But I also keep an eye on Projected Cash Flow in different accounts, where recurring transfers are important.

DannyB · September 28

What I hear you saying is that you set up a recurring transfer using the account you use to initiate the transfer.

That may be what I did initially and that is why some of the recurring transfers are set up as debits (initiated from the sending account) and some are credits (initiated from the receiving account).

All my recurring credit card payments are initiated by the receiving account (credit cards are set up for auto payment in full on a set date each month and the credit card account initiates the transaction).

But my transfers to savings accounts from my checking accounts is a mixed bag. In two instances the sending account is one of my checking accounts and the checking account initiates the transfer automatically on set date for a set amount. In one instance, the receiving account initiates the transfer.

As you point out @SRC54 the account that initiates the transfer is the first account to show that the transfer is in play and the responding account plays catch up as the transfer request is processed.

SRC54 · September 28

Yes, you got what I was saying.

When I move money within the bank, I usually do the account I am taking money out of first. But sometimes Simplifi downloads it so fast and links it that I may not make that decision.

They end up with the same date, and I am not sure I could even tell. And I still find the language confusing in the Transfer section of the Spending Plan.

Here's an example:

I always read this wrong. It would be easier if it said To: 1st Savings on line one and then From:1st Checking on line 2.

DannyB · September 28

https://community.simplifimoney.com/discussion/comment/59381#Comment_59381

Indeed, I too don't think it really matters, @RobWilk. I was curious though whether there might be a reason to set recurring transfers up one way or the other or just leave them mixed.

DannyB · September 28

https://community.simplifimoney.com/discussion/comment/59384#Comment_59384

Just to be clear, I'm specifically talking about the recurring transfer set up and not about the transfers in general.

But now that I'm thinking about it and conversing about it, perhaps I'd be better off deleting the recurring piece for transfers all together. All of my transfers are excluded from the spending plan and reports since I don't need to track them in my spending plan. All moneys that are transferred between accounts, whether as a credit card payment or a savings transfer are covered in my Spending Plan via my routine monthly expenses or my Savings Goals contributions. The actual transfers are "behind the scenes." The only other reason to have them set up as recurring is so they will show up on the account balance projections. But I don't use those projections anyway.

SRC54 · September 28

10-4. I do recurring transfers just to remind me, and I use this one in lieu of savings goals, which just don't work for me. I do this the same way; I do the transfer from the side that is paying the money since it is intra-bank.

I also think that in the Spending Plan, whether included or excluded, the two sides should just count as one transaction and always have the same date. But I realize that goes against Simplifi's modus operandi.

DannyB · September 29

My question is not about the importance or usefulness of keeping track of transfers - that is important and necessary - my question is anout which side of the transfer is best to use when setting up a recurring reminder for a recurring transfer.

Is it better to set up the recurring reminder on the money out side or the money in side?

One answer is to use the account that initiates the transfer. Another is to typically use the money out account. Finally, the value of setting up recurring reminders is that in doing so the transfer will be included in the affected accounts' cash flow projections.

DryHeat · September 29

@DannyB

Sorry if I was off topic. I was responding to your comment that you might "be better off deleting the recurring piece for transfers all together."

As for the "which side to use for recurring transfers" issue… I usually set it up from the "money out" side because that's how I think of a transfer — You take the money out, then you put the money in. But I don't think it makes much difference.

DannyB · September 29

@DryHeat not a problem… and thanks for the input. This is one of those very minor, "Huh, I wonder…" things that in the end make little or no difference. I was just wondering if there was a preference for one side or the other and if that made any difference for how QS tracks and matches the actual transfers when they occur.

Whether I have reminders set up or not, QS still tracks them in the Spending Plan currently under "Planned Spend > Excluded this month (#)" either matching them or adding them as the month unfolds.

One more thing to note FWIW: On the Series page we are given an annual total for each series based on the monthly amount set. For savings transfers, if I want to see the total annual saved, I will need to set up the series based on the receiving accounts side of the transaction. If I use the sending account side of the transaction, I will see the total debit which of course is mirrored in the receiving account but reported as a negative on the series page.

Recurring Transfers, which side to use for setup?

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