Intercompany Funds Transfers: Generated Transactions

When you release a funds transfer between different companies, the system generates a transaction in the general ledger. When this batch is posted, the system adds balancing entries to it. You can view the details of the batch associated with a funds transfer by clicking the link in the Batch Number box of the Funds Transfers (CA301000) form. The system opens the Journal Transactions (GL301000) form with the batch selected.

For a funds transfer between different companies, the following accounts are involved in the GL transaction generated when the funds transfer is released and the related batch is posted:

• The account of the originating branch (that is, the branch from which the funds transfer originates). In the Source Account section of the Funds Transfers form, you select a cash account in the Account box, but in a GL transaction the system will use the GL account associated with the selected cash account.
• The account of the destination branch (that is, the branch that is receiving the funds transfer). In the Destination Account section of the Funds Transfers form, you select a cash account in the Account box, but in a GL transaction the system will use the GL account associated with the selected cash account.
• The offset account to which the system will post the balancing entry in the originating branch; this account is specified in the Offset Account column on the Transactions in the Originating Branch tab of the Inter-Branch Account Mapping (GL101010) form for the destination branch.
• The offset account to which the system will post the balancing entry in the destination branch; this account is specified in the Offset Account column on the Transactions in the Destination Branch tab of the Inter-Branch Account Mapping form for the destination branch.

For a funds transfer between companies, the following example demonstrates the transactions that are generated. In this example, MHEAD is the originating branch that transfers funds and HEADOFFICE is the destination branch to receive the transfer. The transaction shown below will be recorded to the general ledger when the funds transfer is released and the related batch is posted.