CURQ Documentation

Internal Transfers

Overview

Internal transfers are used to move funds between your own bank accounts within CURQ. Examples include transferring money from a checking account to a savings account, or between different company bank accounts.

Because a transfer involves two bank accounts, CURQ does not post the transaction directly from one bank journal to another. Instead, it uses an Internal Transfer Account as an intermediary account to ensure the transfer is recorded correctly and can be reconciled properly in both bank journals.

At least two bank accounts (bank journals) must be configured before you can create an internal transfer.

Configuration

CURQ automatically creates an Internal Transfer Account based on the RGS chart of accounts used in your database. This account acts as a temporary holding account while the transfer is processed between the two bank accounts.

To review or change the default internal transfer account, navigate to: Accounting → Configuration → Settings

Scroll to the Default Accounts section and locate the Internal Transfer Account setting.

Changing the internal transfer account affects the accounting entries generated by CURQ. It is recommended to make changes only in consultation with your accountant.

Create an Internal Transfer

To transfer money from one company bank account to another:

  1. Navigate to Accounting → Dashboard.

  2. Locate the bank journal from which the money will be transferred.

  3. Click the menu button (⋮) next to the bank journal.

  4. Select Payments.

  5. Create a new payment or select an existing payment.

  6. Enable the Internal Transfer option.

  7. Select the Destination Journal (the bank account that will receive the funds).

  8. Enter the transfer amount and other required details.

  9. Click Confirm.

What Happens After Confirmation?

When the internal transfer is confirmed:

  • CURQ creates an outgoing payment in the source bank journal.

  • The amount is posted temporarily to the Internal Transfer Account.

  • CURQ automatically creates a corresponding incoming payment in the destination bank journal.

  • Both transactions remain outstanding until the actual bank transactions are imported and reconciled.

This ensures that both sides of the transfer are correctly represented in the accounting records.

Reconcile the Transfer

Once the transfer has been completed by the bank and the bank statement lines are imported:

  1. Reconcile the outgoing transaction in the source bank account.

  2. Reconcile the incoming transaction in the destination bank account.

  3. CURQ clears the balance on the Internal Transfer Account.

At this stage:

  • The money has been removed from the source bank account.

  • The money has been added to the destination bank account.

  • The Internal Transfer Account returns to a zero balance.

Accounting Flow

The accounting process for an internal transfer typically follows these steps:

Step 1: Create the Internal Transfer

Source Bank Account

Debit

Credit

Internal Transfer Account

Source Bank Account

The amount is temporarily moved from the bank account to the Internal Transfer Account.

Step 2: Automatic Incoming Transfer

Destination Bank Account

Debit

Credit

Destination Bank Account

Internal Transfer Account

The amount is received into the destination bank account and the Internal Transfer Account is cleared.

Step 3: Reconciliation

After reconciling the bank statement lines:

  • The source payment is matched with the outgoing bank transaction.

  • The destination receipt is matched with the incoming bank transaction.

  • The Internal Transfer Account balance becomes zero.