Transfers

A Transfer in Arthalekha represents money moving between two of your own accounts. Transfers help you track internal money movements without affecting your overall net worth.

What is a Transfer?

A transfer is money moving from one account you own to another account you own. Common examples include:

• Moving money from checking to savings
• Paying off a credit card bill
• Withdrawing cash from ATM (bank to cash)
• Depositing cash into bank (cash to bank)
• Moving money between digital wallets
• Transferring between investment accounts

Transfer Properties

Each transfer record contains:

Property	Required	Description
Description	Yes	What the transfer is for (e.g., "Monthly savings transfer")
Amount	Yes	The amount being transferred
Date	Yes	When the transfer occurred
Source Account (Debtor)	Yes	The account money is coming FROM
Destination Account (Creditor)	Yes	The account money is going TO
Tags	No	Categories/labels for this transfer

Understanding Debtor and Creditor

Arthalekha uses accounting terminology for transfers:

Term	Meaning	Balance Effect
Debtor	The source account (money leaves)	Balance decreases
Creditor	The destination account (money enters)	Balance increases

Think of it as: The debtor "owes" money to the creditor.

How Transfers Affect Balances

When you record a transfer:

1. The source account (debtor) balance decreases by the transfer amount
2. The destination account (creditor) balance increases by the same amount
3. Your total net worth stays the same (money just moved)
4. Monthly balance records are updated for both accounts

Example

Transferring ₹10,000 from "HDFC Savings" to "Emergency Fund":

HDFC Savings (Source/Debtor):
  Before: ₹1,00,000
  After:  ₹90,000  (-₹10,000)

Emergency Fund (Destination/Creditor):
  Before: ₹50,000
  After:  ₹60,000  (+₹10,000)

Total Net Worth:
  Before: ₹1,50,000
  After:  ₹1,50,000  (unchanged)

Recording a Transfer

When recording a transfer, you'll need to provide:

1. Description

A clear description of why you're transferring:

• "Monthly savings contribution"
• "Credit card payment - January"
• "ATM withdrawal"
• "Investment deposit"

2. Amount

The exact amount being transferred between accounts.

3. Date and Time

When the transfer occurred. Important for:

• Accurate balance timelines
• Monthly reporting
• Matching with bank statements

4. Source Account (From)

Select the account the money is coming FROM. This account's balance will decrease.

5. Destination Account (To)

Select the account the money is going TO. This account's balance will increase.

caution

The source and destination accounts must be different. You cannot transfer money to the same account.

6. Tags (Optional)

Add tags to categorize the transfer:

• "Savings" for transfers to savings accounts
• "Card Payment" for credit card payments
• "Investment" for investment contributions

Common Transfer Scenarios

ATM Withdrawal

When you withdraw cash from an ATM:

• Source: Bank account
• Destination: Cash/Wallet account
• Description: "ATM withdrawal - [location]"

Credit Card Payment

When you pay your credit card bill:

• Source: Bank account (where payment comes from)
• Destination: Credit card account (reduces the negative balance)
• Description: "Credit card payment - [month]"

Savings Contribution

When you move money to savings:

• Source: Primary checking account
• Destination: Savings account
• Description: "Monthly savings - [month]"

Investment Deposit

When you invest money:

• Source: Bank account
• Destination: Investment account
• Description: "SIP investment" or "Mutual fund purchase"

Transfer vs Income/Expense

It's crucial to use the correct transaction type:

Scenario	Correct Type
Moved money from bank to wallet	Transfer
Paid credit card bill from bank	Transfer
Received money from employer	Income
Received money from a friend (repayment)	Income
Paid for groceries	Expense
Sent money to family member	Expense

Key Question: Is the money staying within your accounts, or going to/coming from outside?

• Staying within → Transfer
• Coming from outside → Income
• Going outside → Expense

Filtering Transfers

You can filter your transfer list by:

Filter	Description
Date Range	View transfers within a specific period
Source Account	View transfers FROM a specific account
Destination Account	View transfers TO a specific account
Tag	View transfers with a specific tag
Search	Search in transfer descriptions

Best Practices

Clear Descriptions

Make it easy to understand the transfer purpose:

• Include the reason: "Monthly savings transfer"
• Include relevant details: "Credit card payment - January bill"

Consistent Scheduling

For regular transfers:

• Set up Recurring Transfers for automated tracking
• Use consistent descriptions for easy searching

Credit Card Management

• Record each purchase as an expense from the credit card
• Record the monthly payment as a transfer from bank to credit card
• This keeps both spending and debt accurately tracked

Cash Tracking

• Create a "Cash" or "Wallet" account for physical money
• Record ATM withdrawals as transfers from bank to cash
• Record cash deposits as transfers from cash to bank
• Record cash expenses as expenses from the cash account

Related Concepts

• Accounts - The source and destination of transfers
• Recurring Transfers - For regular transfers
• Tags - For categorizing transfers
• Balances - How transfers affect account balances