I am new to Manager and really appreciate all the hard work, efforts and time your team has put in to develop this fantastic product. I am quite sure that this will be a huge competition for a lot of accounting softwares out there. The best feature I like about Manager is how quick its respond time is and it doesn’t drains the memory sources on the pc it is being used. Thumbs up!
Coming back to a small problem I am facing, I will explain below:
I use 3 bank accounts.
Account #1: Foreign bank account with funds in USD. This is used to receive payments from customers worldwide in USD. Funds are transferred to Account #2 through Online Transfers.
Account #2: Local Bank Account to which all payments from above account are made and converted into SEK. All taxes related to incoming payment in USD are deducted by the bank immediately upon conversion. All transactions are “strictly” made through Cheques as per company policy.
Account #3: Funds from Account #2 are transferred to this account so that we can make payments to our vendors. (All transactions are “strictly” made through Cheques as per company policy.)
I am trying to import the bank statement for Account #2. So I have incoming USD from Account #1 being converted to SEK and outgoing SEK to Account #3. I have entries from bank statement mentioning “Transfer by Check #XXXXX to Account #3”. When importing these transactions, how do I mark this transaction as inter-account transfers?
I hope I was able to simplify and explain what I am trying to achieve here. Can you help me with setting up the accounts or how to mark these transactions?
You cannot. Inter account transfers are the equivalent of a withdrawal from one account and deposit to another. The entire tab exists as a shortcut for transactions you make and record. But since you want to import your statement from Account #2, you don’t need to enter an inter account transfer. The withdrawal from Account #2 will already be included in the statement.
However, you need the deposit side of the transaction, as well. So you must either import the statement from Account #3 or enter the deposits to Account #3 manually. You cannot complete both halves of the transfer by importing a single bank statement, because a statement is limited to one bank account.
Inter Account Transfers is an optional tab. Sometimes it is convenient, other times not. It is most useful for electronic transfers between accounts in the same institution. When it is used, however, you must either give up importing statements or be prepared to delete any portion of a transfer that is included in a statement.
Thanks, this makes sense, but say I’ve imported both my bank account and credit card account statement, how do I mark the two transactions against each other. Currently, after the import, they are both uncategorized (against suspense)
Sorry if this is obvious, but I can’t seem to figure this out.
I dont think you can. Delete both and do a Inter Account transfer?
You don’t, but you don’t need to. As long as you have imported both statements, you have both halves of the transfer, one as the withdrawal and one as the deposit. An inter account transfer always involves two transactions, and you have them both. The Inter Account Transfer tab in Manager is just an optional shortcut. When you use it, the program takes care of both halves for you. But it is not meant to be used when you import all account statements, only when you are doing manual entries.
By using a transaction clearing account - read below
You need to create bank rules which post the imported transaction to a transaction clearing account.
Import the Bank Statement and the Spend Money to the Credit Card gets debited to the clearing account.
Import the Credit Card Statement and the Received Money from the Bank gets credited to the clearing account.
Read the below modified extract:
The imported statement entry relating to transfers between financial accounts needs to be processed with a Bank Rule via a clearing account. (Or edit the entry to the clearing account)
Bank/Credit Card Transfers are two separate accountings transactions not a single transaction.
1.Bank: Spend Money - Credit Bank and Debit ???
2.Credit Card: Receive Money - Debit Credit Card and Credit ???
The Inter Account Transfer feature in Manager allows you to truncate that to a single entry - Credit Bank Debit Credit Card.
However, when importing financial statements the processing of two transactions is still required because (rightfully) Manager’s Bank Rules prevents any allocation directly between financial accounts otherwise you would have duplicate transactions as demonstrated below.
If you substituted the ??? for the opposing Bank/Credit Card account you would now have:
1.Bank: Spend Money - Credit Bank and Debit Credit Card
2.Credit Card: Receive Money - Debit Credit Card and Credit Bank
The Bank account now has two credit entries and the Credit Card account now has two debit entries - hence the duplication. So to use Import Bank Statement you just need in the Bank Rule to post the opposing debit/credit entry to a clearing account, where the contra transaction will cancel themselves out.
1.Bank: Spend Money - Credit Bank and Debit Clearing Account
2.Credit Card: Receive Money - Debit Cash and Credit Clearing Account
The Clearing Account can be created as either a Current Asset or Current Liability