Intercompany Funds Transfers: Process Activity

In this activity, you will learn how to make a funds transfer between related companies of an organization.

Story

At the end of the 01-2024 period, the SweetLife Fruits & Jams and Muffins & Cakes companies need to reconcile their due-to and due-from accounts so that the companies can pay each other.

Acting as an accountant, you need to review the due-to and due-from accounts and create and release a funds transfer from one company to the other.

Configuration Overview

In the U100 dataset, the following tasks have been performed for the purposes of this activity:

• On the Companies (CS101500) form, the MUFFINS and SWEETLIFE companies have been defined.
• On the Branches (CS102000) form, the MHEAD branch of the MUFFINS company has been created, and the HEADOFFICE branch of the SWEETLIFE company has been created.
• On the Chart of Accounts (GL202500) form, multiple accounts have been created.
• On the Cash Accounts (CA202000) form, the 10200MF - Muffins Checking and 10200WH - Wholesale Checking cash accounts have been created.
• On the Inter-Branch Account Mapping (GL101010) form, the account mapping rules between the Muffins & Cakes head office branch (MHEAD) and the SweetLife head office branch (HEADOFFICE) have been defined.

Process Overview

To process an intercompany funds transfer, you will create and release a funds transfer for the needed amount on the Funds Transfers (CA301000) form.

System Preparation

Before you begin performing the steps of this activity, do the following:

1. Launch the MYOB Acumatica website with the U100 dataset preloaded, and sign in as an accountant Nenad Pasic by using the pasic username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the MYOB Acumatica screen, make sure that the business date in your system is set to 1/31/2024. If a different date is displayed, click the Business Date menu button and select 1/31/2024.
3. On the Company and Branch Selection menu on the top pane of the MYOB Acumatica screen, make sure that the Muffins Head Office & Wholesale Center branch is selected. If it is not selected, click the Company and Branch Selection menu to view the list of branches that you have access to, and then click Muffins Head Office & Wholesale Center.

Step: Processing a Funds Transfer Between Companies

To process a funds transfer from the Muffins Head Office branch to the SweetLife Head Office branch, do the following:

1. Open the Funds Transfers (CA301000) form.
   Tip: To open the form for creating a new record, type the form ID in the Search box, and on the Search form, point at the form title and click New right of the title.
2. On the form toolbar, click Add New Record, and in the Description box of the Summary area, type Intercompany payoff 01-2024.
3. In the Source Account section, specify the following settings:
   • Account: 10200MF - Muffins Checking
   • Transfer Date: 1/31/2024
   • Document Ref.: 01312024
   • Amount: 70.00

   These settings indicate to the system that $70 will be transferred from the 10200MF - Muffins Checking account on January 31, 2024. The document reference number is the number of the corresponding bank document.

4. In the Destination Account section, specify the following details:
   • Account: 10200WH - Wholesale Checking
   • Receipt Date: 1/31/2024

   These settings indicate that the funds will be transferred to the 10200WH account, which is defined as a cash account for the SweetLife company.

5. On the form toolbar, click Save to save the funds transfer.
6. On the form toolbar, click Remove Hold, and then click Release to release the funds transfer.
7. Click the link in the Batch Number box, and review the batch, which the system has opened on the Journal Transactions (GL301000) form.

   Notice that the system added the balancing entries to the batch during the posting process. The balancing entries have been created based on the mapping rule that has been configured on the Inter-Branch Account Mapping (GL101010) form.