Funds transfers between entities

A funds transfer is a transfer of funds from one cash account to another.

You can transfer between accounts with different currencies. Make sure you have the appropriate permissions for both entities.

Trying to pay off a credit card balance? Funds transfers to or from a credit card are not supported. Instead, go to the Charge payoff page to create a bill for the charges and pay it on the Pay bills page.

You can view account balances to determine if you need to make a transfer, or if there are sufficient funds that can be transferred, in the Cash balances report

Before you begin

Make sure of the following:

• If you're making funds transfers at the top level, both bank accounts are at the top level.
• If you're making funds transfers at entity level, at least one of the accounts belongs to the entity.
• Cash Management is enabled to Allow creating, editing, and deleting foreign currency transactions.

• The bank currency matches the corresponding entity base currency for both banks participating in the transfer.

  Check account currency

  1. Go to Cash Management > All or Setup > Accounts and select the required account type.

  2. Find the account that you want to transfer funds from.

  3. Select More actions > View at the end of the row.

  4. Note the Currency and Location ID (entity) for the account.
  5. Select Done to return to the list.
  6. Find the account that you want to transfer funds to.

  7. Select More actions > View at the end of the row.

  8. Note the Currency and Location ID (entity) for the account.
  9. Select Done to return to the list.

  10. Go to Company > Setup > Entities.

  11. Confirm that the currency of each account matches the base currency of the assigned entity.

  1. Go to Cash Management > All or Setup > Accounts and select the required account type.

  2. Select View beside the account that the funds will be transferred from, noting the Currency and Location ID (entity) for the account.

     Select Done to return to the list.

  3. Select View beside the account that the funds will be transferred to, noting the Currency and Location ID (entity) for the account.

     Select Done to return to the list.

  4. Go to Company > Setup > Entities.

  5. Confirm that the currency of each account matches the base currency of the assigned entity.
• There are no restrictions on the bank accounts.

  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. See Private and restricted data in multi-entity companies for more.

• You have inter-entity transactions enabled for the account.
  Check that inter-entity transactions are enabled

  1. Go to Cash Management > All or Setup > Accounts and select the required account type.

  2. Find the account that you want to check.

  3. Select More actions > Edit at the end of the row.

  4. Go to Accounting information and make sure that Disable inter-entity transfers is not selected.

  1. Go to Cash Management > All or Setup > Accounts and select the required account type.

  2. Select the account and select Edit.
  3. Go to Accounting information and make sure that Disable inter-entity transfers is not selected.

Transfer funds between entities

1. Go to Cash Management > All > Transactions and select Add (circle) next to Funds transfers.

2. On the Funds transfer page, select the two accounts for the transfer:

   • From account: The account of the transferring entity from which you want to transfer
   • To account: The account of the receiving entity

   After you select the two accounts, the balance and base currency for each account appear. If you choose accounts with different currencies, the Currency section appears for you to make the conversion from one account to the other.

3. Enter the Date on which you actually made the transfer.

4. Enter the Transaction amount.

   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).

5. Enter the transaction number in the Reference number field.
6. Optionally, include a description for the transfer.

7. To permanently and safely store a digital version of a supporting document, in the dropdown next to Attachment, select an attachment, or select Add, then upload your attachments.

   Learn more about who can add attachments.

8. In a multi-currency company, enter the currency details in the Currency section:

   1. Transaction currency displays the currency of the receiving account.
   2. Enter or select a date in Exchange rate date. The default value is the current date, but you can override this. For example, you might want to change it to the date the transfer occurred.

   3. In Exchange rate type, select the dropdown to select an exchange rate type such as Intacct Daily Rate or one you've created, such as WSJ Published Rate.

      If you know what the exchange rate for this funds transfer is, enter it in Exchange rate to override system calculations.

   If you need to do a fund transfer that requires three-way currency conversion, do the conversion manually and book a journal entry directly to the GL.

9. In the Dimensions section, you can set dimension values for tracking and reporting purposes.

   What are dimensions?

   A dimension is a category of data that you can organize and sort in meaningful ways. Sage Intacct provides the following predefined dimensions:

   • Location
   • Department
   • Class
   • Customer
   • Item
   • Project
   • Vendor
   • Employee
   • Warehouse (if you subscribe to Inventory Control)
   • Contract (if you subscribe to Contracts)

   In addition, Intacct enables you to define new dimensions to suit your needs. Use these user-defined dimensions to organize and sort categories of data unique to your business. For example, if you’re a software company with multiple product lines, you can create a user-defined dimension called Line of business. Then add the values Direct customers, Channel partner, and OEM.

   Dimensions enable you to collect, sort, analyze, and report on data within one category, or between categories, so you can identify key factors such as:

   • Your most profitable or most costly items or customers
   • The return on investment of a project or department
   • Whether and to what degree a new product or product line is successful
   • Which way a particular aspect of your business is trending
   • Intacct dimensions give you fine control over data definition and data hierarchy

   With dimensions, you can customize financial reports around specific business activities, get greater visibility into how the business is doing, and make faster, more meaningful business decisions.

   Think of dimensions as a more powerful alternative to subaccounts.

   Additional fees can apply for the Project dimension and user-defined dimensions. Contact your account representative for more information.

10. Select Save.

Examples

Single currency

The following tables show how an inter-entity funds transfer would work. In this example, the entity Corporate is transferring $500 to the entity Texas. The base currency for both entities is USD.

From bank account

First

First checking account

Bank name	Citi checking
GL account	1000.02
Entity name	Corporate
Base currency	USD

To bank account

Second

Second checking account

Bank name	Chase checking
GL account	1000.03
Entity name	Texas
Base currency	USD

Transfer of funds

Transaction information

Transaction information

Transaction	GL account	Acct name	Location	Debit	Credit
Transfer from	1000.02	Citi checking	CORP		500.00
Transfer to	1000.03	Chase checking	Texas	500.00

Inter-entity transaction (IET) information

Inter-entity transaction (IET) information

Transaction	GL account	Acct name	Location	Debit	Credit
	1999	Inter-entity receivable	CORP	500.00
	2999	Inter-entity payable	TX		500.00