In FirstBit , within the Money Transfer documentERP, the Transfer Fee field is used to record the amount charged by the Bank or Payment system for processing the transfer. This represents a commission or an additional expense related to internal fund transfers (between bank accounts, cash registers, or between a bank and cash account).
The amount specified in the Transfer Fee field is reflected separately in GL entries and reports from the main transfer amount. This ensures proper tracking and control of bank charges and allows for accurate calculation of transfer-related expenses.
Additionally, the Transfer Fee affects the final amount debited from the sender’s account or credited to the recipient’s account, depending on the selected accounting method (whether the fee is charged separately or included in the total transfer amount).
the bank or payment system commission for processing a Money Transfer.
It is recorded separately from the transfer amount and shown as an expense in accounting.
The Transfer Fee can either:
- be charged in addition to the transfer amount, or
- be included within the total amount
It also affects the final amount deducted from the sender or received by the recipient, depending on the selected method.
Transfer Fee Field in Foreign Currency Transfers
The Transfer Fee tab is designed used to record any additional expenses related to a transfer, including currency-related transfersthose arising from foreign currency transactions.
When transferring funds between accounts in different currencies, the system automatically provides the Transfer Fee field so that you can specify , allowing you to enter any conversion costs or bank charges related to the foreign currency transferassociated with the transaction.
The system uses applies the officially established official exchange rate and for the transaction. However, if the transfer is processed at using the bank’s commercial rate, which differs from the official rate, any the resulting difference is generally treated as a bank expense (bank margin) and reflected should be recorded in the Transfer Fee field.
A Foreign exchange difference arises happens on the Bank account and arises due to changes in the official exchange rate between the date of initial recognition and the date of payment or revaluation. Such differences are automatically recorded in financial result accounts (Exchange Gain/Loss).
Therefore, the system processes money transfers using the exchange rate established in the program as of the document date. Any differences calculated within the transfer document are automatically recognized as income or expense (through the Transfer Fee field), without separately highlighting fluctuations in the bank’s internal commercial rate.
For example for bank account Rub in City Bank
Losses on Exchange Rate Differences = Current Rate (in the document 0.047881) - Original Rate (used before 0.047788) * Amount in foreign currency = 2.07
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Formula-
(Previous balance before money transfer)-(Money transfer value)* Сurrent rate- (Previous AED balance - AED money transfer value)
To verify balances in both the foreign currency and the accounting currency, as well as to ensure the correctness of exchange rate difference calculation, please use Cash Assets Balances report (Money - Reports of money - Cash Assets Balances)
Thus, the exchange rate happens when there is variance on the official rates used in the previous document when compared to current document.
More details about the calculation of exchange rate differences can be found in the manual at the link below.
Overview of Exchange Rate Difference Calculation
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Please note that, depending on your accounting policy, you may independently select the expense GL account used to record costs related to transfers.
The system does not impose any restrictions on GL account selection — you are free to use the GL account defined in your accounting methodology.
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