Internal Transfers¶

Internal money transfers can be handled in Kujabuild. At least two bank or cash accounts journals are needed to make internal transfers.

Configuration¶

Some initial configurations though are required to make internal transfers work.

The target Bank or Cash journals require a default account set
Viable currency rates need to have been added or synced
The Internal Transfer for the company account needs to be configured
For internal transfers involving foreign exchange, the Exchange differences Gain and Loss Accounts need to be configured

Setting the Default Account for a Journal¶

To open the list of journals, navigate to Accounting ‣ Configuration ‣ Journals

Select the target Bank or Cash journal

On the Journal form change the field Bank Account for Bank journals and Cash Account for Cash journals

Adding or Syncing Currency Rates¶

To manually add or update currency rates, navigate to Accounting ‣ Configuration ‣ Currencies

Select the specific currency - eg. if your company currency is USD and you select KES
On the Currency form’s Rate tab, you can add a new rate by selecting an appropriate Date (eg. 01/09/2026) and then either adding an appropriate rate on the Unit per USD (eg. 1.1676) or USD per Unit (eg. 0.85646) fields.

Important

The value put in the Unit per USD field is for the value of USD/KES and conversely, the value put in the USD per Unit is its inverse that is, KES/USD

Configure the Company Internal Transfer Account¶

Navigate to Accounting ‣ Configuration ‣ Settings

Search for Internal Transfer in the search field at the top

Generally, the Internal Transfer is already preconfigured - eg. to Liquidity Transfer

You can then select the account you would like

Important
The Internal Transfer account should be of the type Current Assets and should Allow Reconciliation

Configure the Company Exchange Differences Gain and Loss Accounts¶

Navigate to Accounting ‣ Configuration ‣ Settings

Search for Exchange differences in the search field at the top

Generally, the Exchange difference accounts are already preconfigured to one account - eg. to Foreign Exchange Gains/Losses

You can then select the account(s) you would like

Important
The Exchange Differences Gain and Loss accounts should be of the type Income or Expense

Register an Internal Transfer from one Bank to Another¶

When money is transferred from one bank or cash account to another, that amount appears as two transactions on the corresponding journals debiting and/or crediting the default accounts set up on the journals and the company’s internal transfer account.

Non-FX Internal Transfer¶

Access the Internal Transfers list by navigating to Accounting ‣ Accounting ‣ Internal Transfers; click New

On the Internal Transfers form add an appropriate Name, Transfer Date

On the From and To sections add values for the Journals and Amount; the Source and Destination currencies will be the same

The FX Transfer field should be unchecked

The Create & Validate Transfers button will create and validate the journal entries that do the actual transfer via debits and credits

The Post Transfer button becomes visible; this will post the journal entries that were created

Example

Take, for example, a transfer of $1000 from Bank A to Bank B:

Bank journal (Bank A)

Account

Debit

Credit

Bank A account

$1,000

Internal transfer account

$1,000
Bank journal (Bank B)

Account

Debit

Credit

Bank B account

$1,000

Internal transfer account

$1,000

Account	Debit	Credit
Bank A account		$1,000
Internal transfer account	$1,000

Account	Debit	Credit
Bank B account	$1,000
Internal transfer account		$1,000

FX Internal Transfer¶

Access the Internal Transfers list by navigating to Accounting ‣ Accounting ‣ Internal Transfers; click New

On the Internal Transfers form add an appropriate Name, Transfer Date

Ensure that the FX Transfer field is checked

On the From and To sections add values for the Journals and Amount; the Source and Destination currencies will be different

Note
The currency rate field becomes visible showing the rate for the given values

The Create & Validate Transfers button will create and validate the journal entries that do the actual transfer via debits and credits

The Post Transfer button becomes visible; this will post the journal entries that were created

Example

Take, for example, a transfer of $1000 as KES 12,500.00 with a current currency rate of $1 = KES 128.45 from Bank A to Bank B(this means a loss of $3.45):

Bank journal (Bank A)

Account

Debit

Credit

Amount Currency

Bank A account

$1,000

$-1,000

Internal transfer account

$1,000

$1,000
Bank journal (Bank B)

Account

Debit

Credit

Amount Currency

Bank B account

$996.55

KES 12,500

Internal transfer account

$1,000

KES -12,500.00

Foreign exchange gain/loss account

$3.45

$3.45

Account	Debit	Credit	Amount Currency
Bank A account		$1,000	$-1,000
Internal transfer account	$1,000		$1,000

Account	Debit	Credit	Amount Currency
Bank B account	$996.55		KES 12,500
Internal transfer account		$1,000	KES -12,500.00
Foreign exchange gain/loss account	$3.45		$3.45