Skip to main content

​
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.).

​
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

​
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.

​
The Accounting Behind Transfers

Journal Entry Structure:
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

​
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”

​
Example: Transfer 1,000,000 RWF

Scenario: Move 1,000,000 RWF from “Operations Account” to “Reserve Fund” Manual Journal Entry:
Balance Changes:

​
Important Rules

​
Entry Must Be Balanced

Valid Transfer:
Invalid Transfer:

​
Cannot Exceed Source Balance

You cannot transfer more money than is available in the source account. Example:

​
Must Use CASH Role

Both ledger lines must use the CASH role to represent bank account balances. Correct:
Incorrect:

​
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

​
Common Transfer Scenarios

​
Scenario 1: Moving to Savings for Reserves

Purpose: Set aside 2,000,000 RWF for emergency reserves Entry:

​
Scenario 2: Funding Loan Disbursement Account

Purpose: Move 5,000,000 RWF to dedicated loan account before disbursing loans Entry:

​
Scenario 3: Consolidating Accounts

Purpose: Close old account by moving all funds to new account Entry:
After transfer: Old account has 0 balance and can be inactivated

​
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 →

​
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:

​
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

​
Permissions Required

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