The internal transfer account

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Internal transfer is a holding account, used to record reverse transactions. It is used specifically in the following cases:

  • Post self-taxation and recovery operations on purchase tax (VAT on services abroad).
  • Import data into the main accounting from the cash book and credit cards.
  • Record the net salaries debited by the bank, pending the complete recording of the gross salaries with the various monthly deductions. The internal transfer account is a support account, used to record temporary transactions. It is used specifically in the following cases:

Use of the internal transfer account when importing data from the cash book or credit card

When the cash book or credit card movements are kept in separate files from the main accounting, it is used as a counterpart account in order not to create overlapping records in the import, regarding payments from the bank to the cash or credit card accounts.

  • In the cash book or credit card file, the receipt of funds will be recorded (the cash book or credit card account balance is increasing).
  • The outflow from the bank or postal current account and the increase in cash book or credit card will be recorded in the main accounting file.

The internal transfer account must be used as a counter-entry, both in recording the withdrawal from the bank (main accounting), and for payment at the cash book or on the credit card (separate file).

When you import the cash book or credit card data, into the main accounting file, the internal transfer account is reset to zero:

  • The data imported from the cash bookn file or the credit card account will be in the credit of the internal transfer account.
  • The movements relating to payments already recorded with debit on the bank or post office account, will be credited to the internal transfer account.

More details on importing with the internal transfer account are available on the Importing data from the Cash book file.

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