Adding cash control account into inter account transfer

1

Hi guys. How can we make a direct double entry transaction, transfering cash amount under the category and control account of cash directly to bank account under the control account of bank. I noticed that only bank accounts may be run under inter account transfer but there is no way to merge them directly to cash account for those who use both bank & cash. Suggestions please.

2

You are not correct. Inter account transfers can be used without restriction for any transfer from or to a cash or bank account. See Transfer money between bank and cash accounts | Manager.

The only requirement is that all accounts be properly set up as either cash or bank accounts following Set up a bank or cash account | Manager or Set up a cash account | Manager. When completing an inter account transfer form, all cash and bank accounts appear in the same dropdown boxes.

3

I didn’t mean that the inter account transfer fails completely but it works properly under the same drop down list of bank control account but what challenged me is when I wanted the bank control accounts dropdown list to appear parallel with cash control account drop down list under the field of inter account transfer. I’ve explored through the guide and found this statement which I guess could be where I was wrong but I’ll make use of it (“A transfer is not possible unless the business has at least two bank or cash accounts”). I actually entered only one cash account under the control account of cash (which failed to work and may be I’ve to add another cash a/c) and entered five bank accounts under the control account of bank which works as I expected.

Thanks for your reply hope you’ve understood what I meant after my reply.

4

Let me make several points that may be helpful to you:

  • Control accounts, such as Cash at bank or Cash on hand do not appear in dropdown lists for inter account transfers. Only actual cash and bank accounts appear. This is because the control accounts are like summaries for the accounts that make them up. You cannot withdraw or deposit money into a summary, only an actual account.
  • The accounts cannot be made to appear in parallel. The Paid from and Received in dropdown fields appear one above the other. And all defined accounts are listed in both dropdown menus, because any cash or bank account can be the source or destination of a transfer.
  • The sentence in the Guide you quoted means you must have at least two accounts. They can be of either type or the same type. The point is that you cannot enter a transfer unless you have two accounts, because you need a source and a destination. If you only have one account, whether it is a cash or bank account, you can only enter receipts or payments, not transfers.
  • If, as you said, you have one cash account and five bank accounts, you can make inter account transfers between the cash account and any of the bank accounts, or between any two of the bank accounts. The transfers can be in either direction.
  • If all your cash and bank accounts are not appearing in the same dropdown lists on the inter account transfer form, you have not defined them correctly.
5

Thanks a lot, solved. I was wrong somewhere in defining cash account code.

6

Thanks a lot for the clarification, got you and everything resolved as per your advice.