Finance User Manual ENG -> 3. Payments -> 3.4 Specific Payments and Journal Entries -> LUFI-30301 Internal Transfers

LUFI-30401 Internal Transfers

LU Introduction

Monetary transfers are performed from any kind of registers (bank, cash and occasionally cheque). They consist of two entries; one in the origin (sending) register and another in the destination (receiving) register, for example a transfer from the Coordination main safe to a Project’s main safe. These transfers can involve the same currency or two different currencies.

On the sending side the {Third Party} is the journal receiving cash. At the recipient side the {Third Party} is the journal sending cash.

A manual reconciliation needs to be done on the {internal transfer account}. For project-coordination transfers, the coordination performs the reconciliation in the coordination instance. At project level entries on the transfer account are not balanced as coordination B/S entries do not sync to project instances.

FX loss/gain are automatically calculated and recorded in the FXA {FX Adjustment} journal if the disbursing internal transfer is recorded in a different period than the recipient internal transfer or if the bank exchange rate is different from the system rate.

N.B. Suppose you need to withdraw cash at the bank using a cheque. Please check your OCs procedure to know whether you should record the amount OUT from the Bank or Cheque register and adjust the third party in the Cash register accordingly.

How to Book an Internal Transfer Same Currency:

Sending side

Go to: Accounting/ Registers :

Open a register to record an internal transfer sent out. Internal transfers are recorded the same in each register type.
Create and complete a statement line by selecting the account {Internal transfer same currency}.
The {Third Party} is set automatically to {Journal}. Choose the journal you transferred the funds to.
Save the entry.

⮡ The entry is saved in {Draft}. The entry must be changed to hard-posted so that it can be reconciled at a later stage.

Receiving side

Go to: Accounting/ Registers:

Open the recipient register to record an internal cash transfer received.
Create and complete a statement line by selecting the account {Internal transfer same currency}.
The {Third Party} is set automatically to {Journal}. Choose the cash journal you sent the cash from.
Select a {Third Party}: it will be the cash journal. Save the entry.

⮡ The entry is saved in {Draft}. The entry must be changed to hard-posted so that it can be reconciled at a later stage.

How to Book Internal Transfer with Currency Exchange

For transfers with a currency exchange it is not mandatory to know the amount the other side will receive at the time of booking.

Go to: Accounting/ Registers:

Open a register to record an internal transfer sent out
Create and complete a register line by selecting the account {Internal transfer with currency exchange}
The {Third Party} is set automatically to {Journal}. Choose the journal you transferred the funds to.
Save this entry.

⮡ This icon appears :

This allows you to enter the actual amount received in the other currency, which may be different from the exchange rate stored in UniField. Remember: entering this information is not mandatory. If you do not have this information simply leave this field blank.

Click on below icon to record manually the corresponding value of the currency changed locally.

⮡ A {transfer with change} wizard appears

{Transfer with change} wizard from disbursement side, optional

Record manually the local currency value received in the field {Transfer amount converted at real rate}.
Validate and Save your entry.

⮡ The entry is saved in {Draft}. The entry must be set to hard-posted so that it can be reconciled at a later stage.

Receiving side

Go to: Accounting/ Registers:

Open the receiving register to record an internal transfer received.
Create and complete a statement line by selecting the account {Internal transfer with currency change}.
The {Third Party} is set automatically to {Journal}. Choose the journal you sent the money from.
Select a {Third Party}: it will be the journal you sent the money from.
Save this entry.

⮡ This icon appears. This allows you to enter the amount of the money sent in the other currency, which may be different from the exchange rate stored in UniField.

Click on the icon to record manually the original value of the currency that was changed.

⮡ A {transfer with change} wizard appears.

{Transfer with change} wizard from recipient side, optional

Record manually the value that was sent in the field {Transfer amount converted at real rate}.
Validate and Save your entry.

⮡ The entry is saved in {Draft}. The entry must be set to hard-posted so that it can be reconciled at a later stage.

Account move for a 10,000 USD bank transfer to a USD cash box

Description	Account	De	Cr	Entries matching
Transfer sent from bank register
Internal transfer same currency	14120	10,000		A1
Cash at Bank	10200		10,000

Transfer received in cash register
Internal transfer same currency	14120		10,000	A1
Cash on hand	10100	10,000

Account move for a bank transfer of 10,000 USD to a KGS cash box (471,440 KGS)

Description	Account	De	Cr	Entries matching
Transfer sent from bank register
Internal transfer with currency exchange	14130	10,000		A1
Cash at Bank	10200		10,000

Transfer received in Cash Register
Internal transfer with currency exchange	14130		471,440	A1
Cash on hand	10100	471,440

How to Book a Transfer from HQ

Money sent to the field by HQ is recorded in the receiving register on a suspense account {Bank Transfer with HQ} or {Cash Transfer with HQ} usually at coordination level. The third party field should remain blank.

Go to: Accounting/ Registers:

Open the appropriate register to record the HQ transfer.
Create a new transaction using the account {Bank Transfer with HQ} or {Cash Transfer from HQ}.
Save this entry.

How to Book an Intermission Money Transfer:

A money transfer from one mission to another one is recorded in the registers on both sides as an “Out” move and “In” move.
There is no settlement done at mission level but at HQ instance level because there is no physical reimbursement between missions of a same section.
A manual reconciliation is needed on the {Transfer to/from another financial mission: Same section} account at the HQ instance level.

Accounts move at disbursement and receiving side for a USD 34,000 cash transfer without local reimbursement

Description	Account	De	Cr	Entries matching
Cash Out disbursement side
Cash account	10100		34,000
Transfer to/from another financial mission: same section	14140	34,000		HQ

Cash IN receiving side
Cash account	10100	34,000
Transfer to/from another financial mission: same section	14140		34,000	HQ

How to Book an Inter-sectional Money Transfer:

A money transfer from one section to another one is recorded in the registers on both sides as an “Out” move and “In” move.
The booking of this transaction depends on the way the reimbursement will be done. If done at the field level, the transaction will be booked on a receivable and payable account in the registers on both side and the settlement booked by recording the reverse movement in the registers on both sides too when the money is returned. The accounts used will be {Receivable from other sections} and {Payable to other sections} or another one depending of your section policy.
A manual reconciliation will be needed on the {Receivable from other sections} or on the {Payable to other sections} account code, depending on which side of the transfer you are acting.
If the reimbursement is done at HQ level, there is no settlement done at mission level but at HQ system level and the account used when booking the transaction in the field will be {Transfer to/from another financial mission: Other section}.
There is no reconciliation to be done and the entry on the account {Transfer to/from another financial mission: Other section}, which will remain unbalanced.

Accounts move for a USD 34,000 cash transfer and reimbursement settle at mission level

Description	Account	De	Cr	Entries matching
Cash Out disbursement side
Cash account	10100		34,000
Transfer to/from another financial mission: Other section	12010	34,000		A1

Cash IN receiving side
Cash account	10100	34,000
Transfer to/from another financial mission: Other section	30010		34,000	A2

Cash IN disbursement side
Cash account	10100	34,000
Transfer to/from another financial mission: Other section	12010		34,000	A1

Cash OUT receiving side
Cash account	10100		34,000
Transfer to/from another financial mission: Other section	30010	34,000		A2

INTERNAL TRANSFER IN UNIFIELD – RECORD OF CHANGE

A- Internal Transfer Definition 1

B- Old Behaviour For Internal Transfer Between Unifield Instances 1

C- New Behaviour For Internal Transfer Within One Unifield Instance 1

1- Automatic Counterpart Booking 1

2- Automatic Reconciliation 2

3- When Automatic Reconciliation Does Not Work 2

D- Consequences Of The Changes 3

4- Before Booking An Internal Transfer 3

5- Modification After Temp Posting Initial Entry 3

6- Manual Reconciliation 3

7- How To Book An Entry Without Counterpart 3

A- Internal Transfer Definition

Internal transfer is the process of transferring liquidity (money) from one liquidity journal/register to another, within a Country Program. There are two types of internal transfers:

Account code 14120 / 21600 – Internal Transfer Same Currency. Sending and receiving journal/register currency is the same.
Account code 14130 / 21610 – Internal Transfer Currency Exchange. Sending and receiving journal/register currencies are different.

Transfers could occur within one UniField instance (e.g. safe to cash box), or between two UniField instances (e.g. coordination bank to project bank).

Exclusion: Cash/bank transfers from/to HQ or from/to intermission/intersection are not considered as internal transfer and not part of this QRC. They have not been changed.

B- Old behaviour for internal transfer between UniField instances

Internal Transfers (same currency or with currency exchange) are register entries booked manually. One transfer consists of two entries: one in the origin (sending) register and another in the destination (receiving) register. Reference to user manual: LUFI-30401 Internal Transfers

Entries: two entries are booked manually.
Description and reference should be the same. It is manually filled and maintained outside of UF
Third Party: At the sending side the “Third Party” is the journal receiving cash. At the recipient side the “Third Party” is the journal sending cash.
Amount: On the sending side, the amount is OUT. In the receiving side, the amount in IN.
Reconciliation is manual.

Above described behaviour is still applicable for internal transfers between two UniField instances: e.g. Coordination sending cash to project, or between two project instances.

Regarding internal transfers within one instance (proprietary instance of the journals/registers involved is the same), see below.

C- New behaviour for internal transfer within one UniField instance

This change meant to ease the booking of internal transfers, one of most frequent register entries, via automatic booking of second transfer entry and auto reconcile. There are still two register entries per transfer.

1- Automatic counterpart booking

When internal transfers occur within one instance (proprietary instance of the journals/registers involved is the same), e.g. Bank withdrawal to safe or transfer from Safe to Petty Cash, the following change is applicable.

Note that transfer between a project office and a sub-location of the project office which is using the same UniField instance is also considered as “within one UniField instance”.

After UF30 release, when an internal transfer entry is “temp” or directly “hard” posted in the register, UniField creates automatically the counterpart booking in the Third-Party register.

E.g. The cashier books the transfer IN #584 received from the Safe CA001 in the CA002 – Petty cash register.

When this entry is temp posted (or directly hard posted), UF creates automatically in CA001 the following counterpart entry in draft:

UF takes from initial booking all information to populate the fields of the counterpart booking:

Document and posting dates from initial entry.
Description and reference from the initial entry.
Third- party is the sending register of the initial entry.
Amount is in opposite field. If the initial entry is OUT, the counterpart is IN. It is possible that the transfer IN is booked as initial entry and temp posted. UniField will create the counterpart OUT.
The entry is in draft status. It could be edited (all fields), it could be deleted.

2- Automatic reconciliation

Internal transfer entries having a counterpart are marked with a link next to third-party field. Click on the link to see the counterpart booking. This link is visible on register screen and journal item screen and also synched to Coor.

When both entries are hard posted, UF reconcile automatically them (at the time of hard-posting the last one). This reconciliation could be undone. It is not possible to manually reconcile (at project or Coor) a transfer entry with a link (= having a counterpart booking).

In case one of the two entries is deleted, the link is broken and the remaining entry could be manually reconciled.

3- When automatic reconciliation does not work

When the booking amounts do not match in internal transfer same currency, the hard-posting process of the second entry will display error message mentioning the “description- Reference” of the entry. UniField proposes two options

“NO”= The entry will not be not hard-posted. The user could then edit the amount and later hard post. This check is a final review of amount before posting. Use this when the change of amount from initial entry (e.g. due to typo) was not reflected in counterpart.
“YES”= The entry will be hard posted. There is no auto reconciliation (no partial). The link is broken. Both entries could be manually reconciled with other entries without counterpart. Use this if a transfer OUT is received in 2 or more smaller IN (e.g. The local transfer provider did not have enough cash).

This check applies only on internal transfer same currency. For currency exchange, the reconciliation always goes.

D- Consequences of the changes

4- Before booking an internal transfer

Always refresh the register before booking new internal transfer manually. Good coordination within the team helps also to know who is usually/always booking the initial entry. The following scenarios are for inspiration. Each Country Program /Office could define what is more suitable. E.g.:

Cashier/FinAssist is in charge of booking the transfer received in Petty Cash from Safe. FinCo/Admin will have draft counterparts ready to post.
Cheque entries are booked first, as the cheque needs to be issued for cash withdrawal using cheque. Counterpart in safe will be in draft.

5- Modification after temp posting initial entry

Both initial and counterpart entries could be edited and deleted. UniField does not send update to the other entry. Any modification applied both sides after temp posting the initial entry should be communicated to the other register owner and applied on the other entry.

Major modifications: If the modification is on Third-Party or account code, it is better to delete both initial and counterpart and start from new. To do so, click on the link to access the counterpart entry and delete it with the red x before deleting the initial entry. Then book the correct entry.

Modification on Third-Party or account code meant that the counterpart register is not correct. As consequence, the counterpart entry created could not be used as it is not possible to move it to other register.

Tips: Review those fields before “temp” posting an initial transfer entry – especially the third party (frequent mistake).

Minor Modifications: If the modifications are on dates, description, reference, amount, both entries could just be edited. Those modifications need to be communicated to the owner of the counterpart register and applied on the counterpart entry. It is possible to click on the link and access the counterpart entry in order to check if the modifications have been applied.

If one of the entries is deleted, the link is broken, and the remaining entry could be reconciled with other entries without counterpart.

6- Manual reconciliation

After hard posting of all register entries, all transfers with counterpart will be automatically reconciled. The list of transfers non-reconciled should be reviewed among other manually reconcilable entries as per procedures. Those transfers are:

To/from other instances
Within the same instance but the counterpart has been deleted.

7- How to book an entry without counterpart

If a correction transfer without counterpart is needed (e.g. To replace a counterpart which has been deleted), book a transfer entry in the appropriate register. Then using the link , delete the counterpart immediately after temp post. The link is broken. The entry is reconcilable with other entries without counterpart.

◀3.4 Specific Payments and Journal Entries

LUFI-30402 Security Advances▶