The latest version (24.4.30) adds ability to merge receipts and payments into inter account transfers.
This is useful feature when importing your bank transactions (which is most businesses). It allows to categorize your receipts and payments as “Inter Account Transfers” which can be automatically merged into inter account transfers.
How it Works
Let’s say we have the following bank and cash accounts:
When categorizing your payments and receipts which represent transfers between your bank or cash accounts, use the new Inter Account Transfers
account, then select the bank or cash account the transfer is related to.
For example, when paying off Credit card
from Business Operations Account
, after we import bank statements for both Credit card
and the Business Operations Account
account, we categorize payment from Business Operations Account
as:
And received money in Credit card
account as:
Tip: You can set up bank rules so your the transfers between your bank and cash accounts are automatically categorized like this
Both receipt and payment will debit/credit Inter Account Transfers
account on balance sheet but because we are also specifying bank or cash accounts the transfer relates to, Manager will automatically create sub-accounts for each pair. This way even if you have many transfers between many bank accounts, Manager will create inter account transfer ledger for each pair.
When you click on Inter Account Transfer
account on balance sheet, you will see:
The balance for Business Operations Account / Credit card
is zero. This is good. It means equal amount of money that has left one bank account has arrived in another bank account. When you click the balance, you will see list of your inter account transfers for the given pair.
Obviously, in real business, there will be more transfers between variety of accounts, Manager will create sub-account for each pair.
The advantage of this approach is that if you had one big clearing account for inter-account transfers, it was difficult to navigate because it would contain all transactions between all accounts lumped together. If your balances didn’t add up to zero, it was difficult to find which account has caused the issue. By splitting the transactions by account pairs, it’s much easier to resolve bookkeeping errors.
Using Inter Account Transfers
If you are using Inter Account Transfers
tab, you can take things further by merging related payments and receipts into single inter account transfer transaction.
Go to Inter Account Transfers
tab and if there are any receipts and payments that can be merged, you will see yellow notice:
Click on it and you will see the screen with payments and receipts that can be merged. In our example, we have only one payment/receipt pair:
To merge the payment and receipt, check the box and then click New Inter Account Transfer
button. It will delete the payment and receipt and create equivalent inter account transfer.
Notice how the transfer was made on 29th April but it arrived to Credit Card
account a day later. Inter account transfer will take that into an account by setting Cleared
date for credit card on a later date. This makes sure that bank reconciliation won’t be affected and future bank imports will still see this inter-account transfer on correct dates for both accounts so duplicate transactions are not re-imported.