I use Internal Transfer to move money from PayPal to the bank, bank to AMEX, checking to savings, etc.
The documentation says this is the correct use of the function, but…
I am trying to reconcile and I did the bank first, used the Payment Entry to reconcile that money in, but now doing PayPal, it won’t let me use that same Payment Entry for the money out.
Logic tells me that as an Internal Transfer, I should be able to use it for both transactions;
one in, one out, but no, erp does not recognize nor acknowledge my logic.
Since I have only been using the system since January 1st, I must assume I’m missing something key, just have no idea what that is.
You are doing the reconciliation in the correct way. When you are reconciling the entry using the bank reconciliation tool, it is updating the payment entry and you can see that it is cleared in both accounts. The clearance date will be updated in payment entry also. Logically, you should be able to reconcile the entry separately for these two accounts.
And yet, I can’t. Attached a screen capture. This payment entry was already used to reconcile the bank half, but now, entering for the paypal half, it won’t let me.
I just experimented with doing internal transfers via a Journal Entry with the logic that it has a debit and credit, and each will coincide with the banks in and out, but still no luck. I can use the JE for one side, but still get the same error message as above for the other. I can not be the only person who moves money from bank to bank, bank to credit card, paypal to bank, etc. Please, someone tell me how you do this.
The only solution I’ve been able to find for this situation is to create a temporary clearing account which I call Transfer Clearing. It is an Asset account. Then create a Journal Entry to reconcile each bank transaction (both sending & receiving) to the Transfer Clearing account. It is a pretty quick workaround, but this is such a common situation that ERPNext should really create a dedicated feature to handle it. Unfortunately it looks like all the Github issues that’ve been created about this issue have been ignored or closed without resolution:
