What is a Transfer Journal (Accounts Receivable) Overview

This article covers what an Accounts Receivable (AR) Journal Transfer is and provides examples of common scenarios when  to create an Accounts Receivable Transfer Journal.

RELATED ARTICLE

• Process an Accounts Receivable Transfer Journal

Transfer Journal Overview

This section allows a Trust Accountant user to reallocate an income transaction from one Property/Account to another. When an Accounts Receivable journal has been processed, the current month's owner report will show the adjustment journal.

A Trust Accountant user is able to process an Accounts Receivable Transfer Journal by going to Accounts Receivable > Transfer Journal.

The below are some common scenarios where an Accounts Receivable Transfer Journal may be required:

• A tenant has paid a charge in a previous period, but the funds were required to be receipted to the same tenant but for another charge
• Settlement adjustments between a property that has been sold but management has been retained by the managing agent
• Transferring a tenant's amount in credit from one lease to another, but the same debtor
• An adjustment of charges or credits between an Assignee and Assignor for an Assignment of Lease
• Reallocating income from one income code to another income code against the same lease

Outside of the above scenarios requiring a transfer journal, the following scenarios outline the recommended accounting procedures for handling transaction adjustments in Cirrus8, depending on the timing and nature of the original transaction.

Scenario 1: If the transaction is in the current period or the invoice is not generated it is recommended for the Trust Accountant to use Invoice & Credit Adjustments to change the account code or description - the original transaction details will not appear on owner's report, only the updated transaction details.  

Scenario 2: If the transaction is in a prior period or the invoice has already been generated it is recommended for the Trust Accountant to generate an AR Invoice & Credit Adjustment.

Scenario 3: If an amount was receipted to the incorrect tenant, it is recommended that the receipt is cancelled (in the current period) and re-receipted (in the current period).

Note - Accounts Receivable Transfer journal transaction dates cannot be posted in a closed period or prior to the last bank reconciliation date