Internal transfers

Internal money transfers can be handled in Odoo. At least two bank or cash accounts are needed to make internal transfers.

See also

How to add an additional bank account

Configuration

An internal transfer account is automatically created in your database based on your company’s localization and depending on your country’s legislation. To modify the default Internal Transfer account, go to Accounting ‣ Configuration ‣ Settings and scroll down to the Default Accounts section.

While it is possible to manually write off internal transfers to this internal transfers account, it is recommended to instead use the Internal Transfers reconciliation model. If the Internal Transfers reconciliation model does not exist, create it manually:

1. Create a new reconciliation model, and fill in the Name field (e.g., Internal Transfers).

2. Do not select specific matching conditions, and leave the model set to Manual to ensure the model is available to be selected for all transactions.

3. In the Counterpart Items tab, click Add a line.

4. Set the Account to the internal transfer account (the specific account name and code vary by localization).

5. Leave the Amount Type and Amount as their default values of Percentage of balance and 100.

6. Add a Label to identify transactions that are matched using this reconciliation model (e.g., Internal Transfers).

Register an internal transfer from one bank to another

Note

For the sake of clarity, this process is explained with the incoming transaction being reconciled with the Internal Transfers reconciliation model button and the outgoing transaction then being reconciled with the journal item of the incoming transaction. It is possible to switch which transaction is reconciled with the Internal Transfers reconciliation model button without any negative implications.

When money is transferred from one bank or cash account to another, that amount appears as one incoming transaction and one outgoing transaction in their corresponding journals, whether the transactions are created manually, via import, or via bank synchronization. Reconcile the two transactions as follows:

1. Reconcile the incoming transaction by selecting the Internal Transfers reconciliation model button. This action writes the transaction off to the Internal Transfers account.

2. Reconcile the outgoing transaction with the journal item of the incoming transaction:

   1. Click the (vertical ellipsis icon).

   2. Click Reconcile.

   3. In the Search: Journal Items to Match popup, click the journal item of the incoming transaction. This action balances the Internal Transfers account and links the two transactions.

Example

When transferring $1,000 from Bank Account A to Bank Account B, each of the two bank journals has one journal entry:

• The outgoing transaction in the Bank Account A journal:

  Account	Debit	Credit
  Bank Account A		$1,000
  Internal transfer account	$1,000

• The incoming transaction in the Bank Account B journal:

  Account	Debit	Credit
  Bank Account B	$1,000
  Internal transfer account		$1,000

See also

• Bank reconciliation

• Reconciliation models