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Overview

Bank transfers move money from one of your organization’s bank accounts to another. In Agatabo, transfers between your own bank accounts are accomplished using manual journal entries, not through a dedicated transfer button.
Internal transfers only: This is for transfers between YOUR bank accounts. For external transfers (to members, suppliers, etc.), use the appropriate transaction type (loan disbursement, expense, dividend, etc.).

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When to Transfer Between Accounts

Common scenarios:
  • Moving excess funds to a savings account for reserves
  • Transferring money from savings to current account for loan disbursements
  • Rebalancing cash between accounts
  • Setting aside funds for specific purposes
  • Consolidating cash into one account

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How Bank Transfers Work

Since Agatabo does not have a dedicated “Transfer” feature, you accomplish transfers by creating balanced manual journal entries that move money between CASH ledger accounts.

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The Accounting Behind Transfers

Journal Entry Structure: 
Dr CASH (Destination Account)    Amount
   Cr CASH (Source Account)      Amount
What happens:
  1. Source account balance decreases (credited)
  2. Destination account balance increases (debited)
  3. Total cash remains unchanged (money moved, not gained or lost)
  4. Transaction appears in both accounts’ history

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How to Transfer Money

1

Navigate to Manual Journal Entries

General Ledger → Manual Journal Entries → Create Manual Entry
2

Set transaction date

Choose the date for the transfer
3

Add description

Example: “Transfer from Operations to Savings Account”
4

Add DEBIT line (Destination)

  • Role: CASH
  • Bank Account: Select destination account
  • Amount: Transfer amount
5

Add CREDIT line (Source)

  • Role: CASH
  • Bank Account: Select source account
  • Amount: Same transfer amount
6

Verify entry is balanced

Total debits must equal total credits
7

Submit

Click “Create Manual Entry”

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Example: Transfer 1,000,000 RWF

Scenario: Move 1,000,000 RWF from “Operations Account” to “Reserve Fund” Manual Journal Entry: 
Date: 2026-06-11
Description: Transfer to reserves

Dr CASH (Reserve Fund)           1,000,000
   Cr CASH (Operations Account)  1,000,000

Total Debits: 1,000,000 = Total Credits: 1,000,000 ✅
Balance Changes: 
Operations Account:
Before: 5,000,000 RWF
After:  4,000,000 RWF (decreased)

Reserve Fund:
Before: 2,000,000 RWF
After:  3,000,000 RWF (increased)

Total Cash: Unchanged (7,000,000 RWF)

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Important Rules

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Entry Must Be Balanced

Valid Transfer: 
Dr CASH (Account A)  500,000
   Cr CASH (Account B)  500,000
✅ Balanced
Invalid Transfer: 
Dr CASH (Account A)  500,000
   Cr CASH (Account B)  300,000
❌ Unbalanced - will be rejected

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Cannot Exceed Source Balance

You cannot transfer more money than is available in the source account. Example: 
Operations Account Balance: 1,000,000 RWF

Attempt to transfer 1,500,000 RWF:
❌ Will create negative balance - rejected by system

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Must Use CASH Role

Both ledger lines must use the CASH role to represent bank account balances. Correct: 
Dr CASH (Account A)
   Cr CASH (Account B)
✅ Both lines use CASH role
Incorrect: 
Dr CASH (Account A)
   Cr SAVINGS (Member Account)
❌ This is not a bank transfer - this is a savings withdrawal

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Verification After Transfer

After creating the manual entry, verify the transfer:
1

Check source account balance

Navigate to Bank Accounts → Source Account Verify balance decreased by transfer amount
2

Check destination account balance

Navigate to Bank Accounts → Destination Account Verify balance increased by transfer amount
3

View journal entry

General Ledger → View Journal Entries Find your manual entry and verify it’s posted
4

Check both account histories

Each account should show the transfer transaction

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Common Transfer Scenarios

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Scenario 1: Moving to Savings for Reserves

Purpose: Set aside 2,000,000 RWF for emergency reserves Entry: 
Description: Transfer to emergency reserve fund

Dr CASH (Reserve Savings Account)    2,000,000
   Cr CASH (Operations Current Account)  2,000,000

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Scenario 2: Funding Loan Disbursement Account

Purpose: Move 5,000,000 RWF to dedicated loan account before disbursing loans Entry: 
Description: Fund loan disbursement account for June loans

Dr CASH (Loan Disbursement Account)  5,000,000
   Cr CASH (Operations Account)      5,000,000

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Scenario 3: Consolidating Accounts

Purpose: Close old account by moving all funds to new account Entry: 
Description: Consolidate to new Equity Bank account

Dr CASH (New Equity Account)     3,456,789
   Cr CASH (Old BK Account)      3,456,789
After transfer: Old account has 0 balance and can be inactivated

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Alternative: Reserve Allocations

If you’re transferring to set aside reserves, consider using Reserve Allocations instead: Advantages:
  • Dedicated feature for reserve management
  • Tracks reserve purposes (emergency, loan loss, etc.)
  • Prevents accidental use of reserved funds
  • Better reporting for reserve balances
When to use:
  • Setting aside emergency funds
  • Loan loss provisions
  • Dividend reserves
  • Statutory reserves
Learn more about reserves →

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Reversing a Transfer

If you made a transfer by mistake, you can reverse it using another manual journal entry:
1

Create reversal entry

General Ledger → Manual Journal Entries
2

Reverse the debits and credits

Swap the debit and credit lines from original entry
3

Add clear description

Example: “Reversal of incorrect transfer from June 11”
4

Submit

Balances return to original state
Example Reversal: 
Original Transfer:
Dr CASH (Account A)  1,000,000
   Cr CASH (Account B)  1,000,000

Reversal:
Dr CASH (Account B)  1,000,000
   Cr CASH (Account A)  1,000,000

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Best Practices

Transfer tips:
  • Always add clear, descriptive notes to manual entries
  • Verify source account has sufficient balance before creating entry
  • Double-check you selected correct source and destination accounts
  • Verify entry is balanced (debits = credits)
  • Check both account balances after posting to confirm
  • Document reason for transfer in description
  • Use reserve allocations for reserve-related transfers
  • Create transfer entries on the actual date of transfer (don’t backdate)
  • Keep transfer entries separate from other manual adjustments

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Permissions Required

ActionPermissionScope
Create manual journal entryledger:writeANY
View journal entriesledger:readANY
View bank account balancesaccounts:readANY
Accountant/Administrator only: Creating manual journal entries requires advanced accounting knowledge. Incorrect entries can corrupt your financial records. Only users with proper training should create manual entries.

Manual Journal Entries

Learn how to create manual entries

Bank Accounts Overview

Understand bank account management

Reserve Allocations

Alternative for setting aside reserves

Understanding Double-Entry

Learn accounting principles