Funds Transfers with Taxable Fees: Generated Transactions

To be able to perform funds transfers with taxable fees, you create and process the documents on the Funds Transfers (CA301000) form. To track the movements of funds between cash accounts, the system generates GL transactions described in the following sections.

Transaction Generated for a Funds Transfer with Taxable Expenses

When you create and release a funds transfer with a taxable service fee paid from the source account, the system generates the following GL transaction, if the applied tax is exclusive:


Account	Debit	Credit
Source account	00.00	Transfer amount
Destination account	Transfer amount	00.00
Source account	00.00	Expense amount + tax amount
Expense account	Expense amount	00.00
Tax expense account	Tax amount	00.00

Note: The calculation rule specified for the tax applied in the above transaction on the Taxes (TX205000) form is Exclusive Document-Level.

If the applied tax is inclusive, the system generates the following GL transaction:


Account	Debit	Credit
Source account	00.00	Transfer amount
Destination account	Transfer amount	00.00
Source account	00.00	Expense amount
Expense account	Expense amount – tax amount	00.00
Tax expense account	Tax amount	00.00

Note: The calculation rule specified for the tax applied in the above transaction on the Taxes form is Inclusive Document-Level.

You can view the reference number of the GL batch in the Summary area of the Funds Transfers (CA301000) form.