Cash Transfer Journal

Scope

Intercompany Cash Transfer allows transferring funds between two different entities.

Intracompany Cash Transfer allows transferring funds between two different bank accounts of the same entity.

  • Cash Transfer Journal can be processed from any company, regardless of the companies involved.

  • For Intercompany transfers Interim Bank Accounts are created in source and target companies and linked to corresponding accounts in the Bank Account Posting Groups.

  • Intercompany transfers and their reversals trigger the creation of ledger entries and reversals in both companies simultaneously.

  • Cashflow Classification specifies the cashflow category the transaction belongs to.

  • Intercompany Dimension allows locating the source of transaction in the ledger entries of both entities.

  • Transfer Instruction specifies details of the transfer of funds and its signatories in a pdf or a word document.

  • Posted Transfer is a historical aggregated view for all cash transfers made across all entities.

Workflow

IC A – Source Company

IC B – Target Company

1. Intercompany Cash Transfer

Path: Elysys Wealth -> Toolkit -> Transfer -> Cash Transfer Journal

Notes:

  • Source Company must be different from Target Company.

    • Source Company – the company we are transferring the funds from.

    • Target Company – the company to which we are transferring the funds to.

  • Currency - filters Source and Target Bank Accounts in the selected currency.

  • Source/Target Bank Account – specifies main bank accounts the funds are transferred between.

  • Source/Target Balance Account – specifies interim accounts the entries will be booked against in the ledger entries for both source and target companies.

  • Amount – specifies the amount we are transferring. In case of an overdraft, the user will be notified before the transfer is validated.

  • Payment Reference – specifies the reference of the payment.

  • Source Code – specifies where the entry was created. It auto populates based on the Source Code selected in the Intercompany Cash Journal Batch. If the Source Code in the batch is blank, then the user needs to select the Source Code in the journal manually.

  • Signatory 1 & 2 – used for generating Payment Instructions. Signatories are predefined in the following pages:

    • INV Signatory List

-   **INV Signatory Card**

  • Cashflow Classification - specifies the cashflow category the transaction belongs to. The categories are user definable and are predefined in the Cashflow Classification Setup screen.

  • Inter-Company Dimension – allows tracing the source of transaction in the ledger entries of both entities.

    • Source Dimension - specifies the dimension value displayed in the ledger entries in the source company; e.g., name of the target company.

 

  • Target Dimension - specifies dimension value displayed in the ledger entries in the target company; e.g., name of the source company.

a) Cash Transfer Details Fact Box

FactBox displays available funds in source and target bank accounts. It is a useful point of reference before a journal is posted.

b) Processing Journal

Path: Cash Transfer Journal -> Home -> Post

Posting the journal validates the transfer in both companies simultaneously.

c) Posted Transfers

Path: Cash Transfer Journal -> Archive -> Posted Transfers

Posted Transfers take us to the aggregated/historical view for all cash transfers posted across all entities.

Ledger Entries

a) Source Company – IC A

DB Interim Bank Account 1,000.00 CR Main Bank Account 1,000.00 

Cashflow Classification -> Interco Cash Transfer

Intercompany Dimension -> IC B (Target Company) 

b) Target Company – IC B

DB Main Bank Account 1,000.00    CR Interim Bank Account 1,000.00 

Cashflow Classification -> Interco Cash Transfer

Intercompany Dimension -> IC A (Source Company) 

2. Intracompany Cash Transfer

Intracompany Cash Transfer within the Cash Transfer Journal allows transferring funds between two different Bank Accounts of the same company.

a) Intracompany Cash Transfer Journal

Notes:

  • Source and Target companies are the same.

  • Source/Target balance Bank Accounts are disabled.

  • Cashflow Classification - specifies the cashflow category the transaction belongs to which. The categories are user definable and are predefined in the Cashflow Classification Setup screen.  

Ledger Entries

DB Target Bank Account 1,000.00    CR Source Bank Account 1,000.00 

Cashflow Classification -> Intra Cash Transfer

Intercompany Dimension -> IC B

Reversal

Reversal can be processed from any company involved and reversal in one entity triggers the creation of ledger entries and reversals in both companies simultaneously.

3. Automation of Intercompany Dimension

The set-up allows dimensions to be automatically inserted in the Cash Transfer and Intercompany Payment Journals.

a. Investment General Setup

Under General Fast Tab, the Intercompany Dimension is set up with INTERCO or similar dimension used for intercompany transactions tracking.

b. Intercompany Code

In the Aggregate View Companies we assign the Intercompany Code that will be automatically populated for each entity involved in the ledgers. We can have one Intercompany Code per entity.

It is a reference code that is used for consolidation purposes and helps with tracking the source, e.g., the names of the companies from and into which the transfers are made.

c. Dimension Value

Intercompany Codes are later selected as Dimension Values under Dimension INTERCO for each company involved in the transfer or intercompany payment.

Dimension Values are user definable, but they are usually set to match the names of the Source and Target companies.

Source Company – IC A is set with Dimension Value IC B

Target Company – IC B is set with Dimension Value IC A

d. Example

Transfer of 2,000.00 USD was made from company IC A to company IC B.

Based on the above setup, the INTERCO Dimension automatically populated IC B under Source Dimension and IC A under Target Dimension

Source Dimension

Target Dimension