Transfer Customer Balance – A summary of the activity

This activity allows you to transfer account balances from one customer to another customer. A transfer of balances is necessitated when major takeovers or mergers of organizations happen or whenever a customer closes down his business. Credit balances and debit balances can be transferred from one customer control account to another within a finance book or between two finance books within the same business unit or company. You can also transfer the customer balances of a receivable account, prepayment account and deposit account to another customer within a finance book or between two finance books within the same business unit or company.

You can transfer the entire amount from one account to another or transfer partial amount. In case of a partial balance transfer the corresponding documents have to be referred. You can transfer balances between accounts operating in the same currency or in different currencies. The customer from whom the balance is transferred from is called as a “Transferor Customer” and the customer to whom the balance is transferred to is called as a “Transferee Customer”. If the transferor currency and the transferee currency are different, then the system calculates the exchange variance amount. The customers must be in the “Active” status.

When a credit balance is transferred, a transfer debit note is generated for the transferor customer and transfer credit note is generated for the transferee customer. In case of a debit balance transfer a transfer credit note is created for the transferor customer and a transfer debit note is created for the transferee customer. In case of a prepayment transfer a transfer credit note is generated for the transferor customer and a prepayment voucher is generated for the transferee customer.

The system updates the status of the transfer debit note to “Draft” if the payment schedule or the payment information is not been entered for the transfer debit note. The transfer debit note is updated from “Fresh” or “Draft” status to  “Authorized” status only in the “Payment Information” page. The system updates the login ID of the user who created the transfer note as created by and the system date as the date on which the transfer note is raised. The system generates the unique number for both transfer credit and the transfer debit document.

Example

Account of transferor is USD

Account of transferee is GBP

Let us take the following reference documents for partial transfer

If you want to transfer 90 USD and all the documents are chosen.

The amount in base currency is 4230

If you are transferring it to GBP, the total GBP is 90 * 0.75 = 67.5 GBP

The amount in GBP is converted to 67.5 * 55 = 3712.5 INR      

There is difference of 517. 5 INR, which will be booked to the exchange rate variance account. 

Getting familiar with the pages inside

What you can do in this activity

Auto Adjustment

Cross currency transfer

Transfer across finance books

Capture currency variance information

Partial transfer of amount

Auto Adjustment

The documents can be automatically adjusted after the transfer.

• Go to “Transfer Customer Balance” page.

• Enable the “Auto Adjust” feature.

• Transfer the customer balance.

Cross currency transfer

The customer balance can be transferred from one customer to another in different currency.

• Go to “Transfer Customer Balance” page.

• Specify the transferor customer currency  and the transferee customer currency different from that of the transferor customer and transfer the balance.

Transfer across finance books

The customer balance can be transferred from one finance book to another belonging to the customer.

• Go to “Transfer Customer Balance” page.

• Select the finance book for the transferor customer and the finance book for the transferee customer.

• Transfer the balance.

Capture currency variance information

The balance can be transferred from one currency of the customer to the different currency of the transferee customer.

• Go to “Transfer Customer Balance” page.

• Enter different currencies for the transferor and the transferee customer details.

• Enter the cost center, analysis and the sub analysis code.

The system calculates the exchange rate variance and posts it to the exchange rate variance account.

Partial transfer of amount

The customer balance can be transferred partially to another customer.

• Go to “Transfer Customer Balance” page.

• Specify the search criteria to retrieve the reference document for partial transfer.

• Transfer the customer balance.