About funds transfers

Record the transfer of funds from one cash account to another. Cash accounts include cheque accounts and savings accounts.

Foreign currency transactions

If your company uses foreign transaction currencies, you can transfer funds only between base currency accounts. If your company is based in the US with offices in Canada, you cannot transfer dollars in CAD from the Canadian bank to USD in a base-currency US bank. Nor can you transfer funds between two foreign-currency Canadian banks.

Multi-entity companies

In multi-entity companies with multiple base currencies, you can transfer funds between banks within an entity or across entities. For example, you can transfer funds between Bank of America (USD) and Wells Fargo Bank (USD) because they both use USD. You can also transfer funds between Bank of America (USD) in one entity and Canadian Bank (CAD) in another entity. Funds transfers are recorded in the appropriate bank's currency.

When you transfer funds between accounts with different currencies, enter the amount in the currency into which you’re transferring.

For example, to transfer 75 pesos from a bank with USD currency, enter 75 in the transfer from section. The transfer will be 75 pesos and the originating bank will show the equivalent amount in its currency based on the exchange rate, in this case, in USD (approximately $4 USD).

The following are prerequisites for transferring funds of different currencies.

  1. Disable inter-entity transfers is not enabled.

  2. If you're adding a funds transfer at the entity level, ensure that at least one of the selected accounts belongs to the entity.

  3. Allow creating, editing, and deleting foreign currency transactions is enabled on the Configure Cash Management page.
  4. The bank currency matches the corresponding entity base currency for both banks participating in the transfer.

In some cases, accounts could be restricted to certain entities or locations. If the account does not appear in the list for selection, it might be a restricted account.

Scenarios

Depending on what types of accounts to which and from which you transfer funds, one of several scenarios takes place:

  • You could transfer funds from and to the same bank account.

    You could do this between two bank accounts, for example. In this case, the net effect on the General Ledger is zero.

  • You could transfer between the same bank account and its debit card.

    Debit cards draw on the bank account in the same way as a cheque. Again, the net effect on the General Ledger is null, but the entries are named differently in the register.

Trying to pay off a credit card?

A funds transfer to or from a credit card is not supported. Instead, learn how to perform a credit card payoff.