How to Process a Bank/Cash Transfer in iDempiere

Introduction

The Bank/Cash Transfer window records the movement of funds between an organization’s own bank and cash accounts, such as depositing cash or moving funds to a collection account.

It is used for internal fund movements only, not for settling invoices with customers or vendors, keeping those payment types separate.

Completing the transfer automatically creates two linked payment records, one outgoing and one incoming, giving a complete audit trail for reconciliation.

Business Rules

• The From Bank Account and To Bank Account must be different.
• The transfer amount must be entered before the document can be completed.
• Payment Date and Accounting Date are required.
• Source and destination account details must be completed before processing.
• Completing the document finalizes the transfer and marks it as Processed.
• Completed transfers become read-only.
• Two payment records (an AP Payment and an AR Receipt) are automatically created on completion.
• The Charge selected on each side determines the clearing account used when the payments are posted.

Process Flow Diagram

Configuration Steps

Step 1: Create the Bank/Cash Transfer

The header captures when the transfer happens and which organization it belongs to, before any account details are entered.

Create a new Bank/Cash Transfer and enter the Organization, Payment Date, and Accounting Date.

Field	Sample Value	Description
Organization	CDC	Organization performing the transfer
Document No	1000002	Number assigned to this transfer
Payment Date	07/09/2026	Date the transfer takes place
Account Date	07/09/2026	Financial posting date

Step 2: Enter the Source Account

The From Bank Account section identifies exactly which account funds are leaving, along with the amount and payment method.

Under From Bank Account, select the source account, business partner, charge, currency, amount, and tender type.

Field	Sample Value	Description
From Bank Account	POS Cash Account_POS Cash_100001	Account funds are transferred out of
From Organization	CDC	Organization owning the source account
From Business Partner	CHENNAI SUPPLIERS	Business Partner associated with the source side
From Charge	Bank Transfer Charge	Charge that determines the clearing account used for posting
From Bank Currency	INR	Currency of the source account
From Amount	50,000.00	Amount being transferred out
From Tender Type	Direct Deposit	Payment method used for the transfer

Step 3: Enter the Destination Account

The To Bank Account section identifies where the funds land, mirroring the source details so both sides of the transfer are fully recorded.

Under To Bank Account, select the destination account, business partner, charge, currency, amount, and tender type.

Field	Sample Value	Description
To Bank Account	POS UPI Collection_POS UPI_100002	Account receiving the funds
To Organization	CDC	Organization owning the destination account
To Business Partner	CHENNAI SUPPLIERS	Business Partner associated with the destination side
To Charge	Bank Transfer Charge	Charge that determines the clearing account used for posting
To Bank Currency	INR	Currency of the destination account
To Amount	50,000.00	Amount received
To Tender Type	Direct Deposit	Payment method used for the transfer

Note: From Amount and To Amount should match; a mismatch usually points to a currency or charge configuration issue rather than an intentional difference.

Step 4: Save the Transfer

Click Save. The document remains in Drafted status and is available for completion.

Step 5: Complete the Bank/Cash Transfer

Completing the document is what actually finalizes the fund movement and generates the accounting-ready payment records.

Select Document Action → Complete.

Expected Result

• Document Status changes to Completed.
• The Processed checkbox is selected.
• The document becomes read-only.
• Two payment records are automatically generated.

Step 6: Review the Generated Payments

The Payments tab lists both records created by the transfer, so you can confirm the outgoing and incoming sides were generated correctly.

Open the Payments tab on the completed Bank/Cash Transfer and review both records.

Field	Sample Value	Description
Payment	1000002_07/09/2026_50000.00_-1	Generated payment document, outgoing side
Document Type	AP Payment	Outgoing payment from the source account
Document Type	AR Receipt	Incoming receipt into the destination account
Document No	1000002	Shared document number for both generated payments
Document Status	Completed	Status of each generated payment

Step 7: Review the Generated Payment Documents (Optional)

Opening each payment individually confirms the bank account, amount, and charge carried through correctly from the transfer.

Open each payment record from the Payments tab and verify the Bank Account, Payment Amount, Tender Type, and Charge.

Step 8: Review the Posted Accounting Entries (Optional)

Reviewing the posting confirms the transfer nets to zero through a clearing account rather than posting directly bank-to-bank.

Open Posting for each generated payment and verify the debit and credit lines against the clearing and charge accounts.

Common Issues and Resolutions

Issue	Cause	Resolution
Source and destination accounts are the same	Same account selected for both fields	Select different bank or cash accounts for From and To
Mandatory fields remain highlighted	Required information is missing	Complete all mandatory fields before saving
Unable to complete the transfer	Required transfer information is incomplete	Review the header and account details before completing
Payments tab is empty	Document has not been completed	Complete the Bank/Cash Transfer to generate the payment records
From Amount and To Amount do not match	Currency mismatch or manual override	Confirm both accounts use the same currency, or review the entered amounts
Posting does not balance as expected	Charge not consistently selected on both sides	Select the same Charge on From and To so postings clear through the same account

Next Steps

• Review the generated payment records.
• Verify the accounting entries, if financial posting is enabled.
• Perform bank or cash reconciliation.
• Continue with the organization’s regular financial closing activities.