Transfer Authorization
Intercompany transfer authorization is the specific instance of intercompany transfer that needs to be executed following the financial route specified in the agreement.
Each transfer authorization can represent a new forward transaction such as a new loan or interest on loan. It can represent a negative transaction such as a repayment of loan or a cancellation of a loan or interest. You can have multiple transfer authorizations within an agreement.
Transfer authorization requires this information:
- Transfer Authorization Reference Number
- Transaction Date
- Transaction amount
- Description
- Amount Type
Scenario:
Continuing the same example, the agreement to fund the working capital loan is in the Active status and a transfer authorization is entered with these details:
| Transfer Authorization Reference Number | Description | Transaction Date | Transaction Amount | Amount Type |
|---|---|---|---|---|
| Loan funding | Loan funding | Jan-02-2024 | 10000 USD | Loan |