About funds transfer processing

You create a funds transfer document by using the Funds transfers (CA301000) window.
You specify the source cash account, the document reference number, the transferred amount, and the destination cash account. When you save the funds transfer, the system assigns it a reference number accordance with the number series assigned to transfers in the Transfer number series field in the Cash management preferences (CA101000) window.

The system creates the funds transfer with the Balanced status by default.
(That is, by default, the Hold transactions on entry check box in the Cash management preferences (CA101000) window is cleared, so new funds transfers are not put on hold.)
Balanced transfers can be edited, saved, put on hold, or released.

If you transfer funds between accounts denominated in different currencies, the system performs currency conversion by using the base currency and the cash-in-transit account and subaccount (if the Subaccount functionality is enabled in the Enable/disable functionalities (CS100000) window) that are specified in the Cash-in-transit account and Cash-in-transit subaccount fields in the Cash management preferences (CA101000) window. For transfers maintained in different currencies, you can change the exchange rate for a particular transfer, and you can change the amount received to the destination account if the exchange rate of the system differs from the exchange rate of the bank. If you change the received amount, the system calculates the realised gain or loss (RGOL) for the transfer.

Transactions of the following types are generated when you save the funds transfer document:

• Transfer in:
  This transaction has the same number as the transfer, and its entries update the destination account and cash-in-transit account, if one is used.
• Transfer out:
  This transaction also has the same number as the transfer, and its entries update the source account and the cash-in-transit account, if one is used.
  
  These transactions both appear as transactions of the Transfer type in the Release cash transactions (CA502000) window.
• Expense entry:
  Every expense you record generates a separate transaction.
  Journal entries of transfer expenses update the accounts associated with the entry type selected for the transfer expense.
  Transactions of this type are numbered automatically in accordance with the number series assigned to cash transactions in the Cash management preferences (CA101000) window.

You can record transfer expenses and charges in a funds transfer document by clicking Add expense in the Funds transfers (CA301000) window and entering the expense-related information in the Quick transaction dialog box. Before you record charges, you need to configure an entry type that provides the default details for the transaction.

You can release a balanced funds transfer by using the following windows:

• Funds transfers (CA301000):
  You release the funds transfer you are viewing and its transactions by clicking Release in the window toolbar.
•  Release cash transactions (CA502000):
  You use this window to release a particular funds transfer or multiple funds transfers.
  This window includes transactions of Transfer type, and transactions that correspond to one transfer have the same transaction number.
  To release all transactions of the funds transfer, you need to select only one transaction and release it; the system releases the other transactions automatically.
• Cash account details (CA303000):
  You can also use this window to release a particular funds transfer or multiple funds transfers.
  In this window, you first select a cash account, which can be the source or destination account for your funds transfer, and then the system displays a list of transactions that includes the funds transfer transaction of the Transfer out or Transfer in type, depending on whether the account you selected is a source or destination account. In this window, too, to release all transactions of the funds transfer, you need to select only one transaction and release it; the system releases the other transactions automatically.

After you release a funds transfer, the system changes its status to Released and records batches with transactions to the general ledger.
If you transfer the funds between bank accounts with the base currency, the system generates a general ledger batch with following transaction.

The system also can generate separate transfer-in and transfer-out general ledger batches for funds transfer maintained in base currency.
For example: If the post period of the transfer-out and transfer-in are different, the funds are moved first to the cash-in-transit account, and then from this account to the destination account. The system always generates separate general ledger batches for a multi-currency transfer.
The following tables show the transactions recorded to the general ledger for the source and destination accounts.

If the gain or loss is produced by a multi-currency transfer, the transactions shown in the following tables are recorded to the general ledger for the destination account, depending on whether a gain or loss is produced by the transfer (that is, whether the RGOL is positive or negative).

If you have added expenses for the funds transfer, the system generates a separate cash transaction when the funds transfer is released, and the following transactions are recorded to the general ledger.

If the Automatically post to general ledger on release check box is selected in the Cash management preferences (CA101000) window, the system automatically posts batches to the general ledger; otherwise, you need to post the batch manually by using the Post transactions (GL502000) window.

You can view transaction details by using the following windows:

• Funds transfers (CA301000):
  You can view the funds transfer details in this window, as described above, and you can view the associated general ledger batches (if the funds transfer has been released) by clicking the batch numbers in the Source account and Destination account sections.
• Cash account details (CA303000):
  In this window, you can view all activity on any cash account during the date range you specify, including any transactions of funds transfers generated for the selected cash account.
  You can also view the details of the associated general ledger batch by clicking the batch number in the Batch number column.

If you have released an incorrect transfer and want to correct the transactions, you can first create and release a reversing transfer and then make the correct transfer.