{"id":151163,"date":"2026-10-13T10:33:37","date_gmt":"2026-10-13T10:33:37","guid":{"rendered":"https:\/\/docs.daftra.com\/tutorial\/%d8%aa%d8%ad%d9%88%d9%8a%d9%84-%d8%b1%d8%b5%d9%8a%d8%af-%d8%a3%d9%88-%d9%85%d8%a8%d9%84%d8%ba-%d9%85%d9%86-%d8%b9%d9%85%d9%8a%d9%84-%d8%a5%d9%84%d9%89-%d8%b9%d9%85%d9%8a%d9%84-%d8%a2%d8%ae%d8%b1\/"},"modified":"2026-10-19T13:58:35","modified_gmt":"2026-10-19T13:58:35","slug":"transferring-a-balance-or-amount-from-one-client-to-another","status":"publish","type":"tutorial","link":"https:\/\/docs.daftra.com\/en\/tutorial\/transferring-a-balance-or-amount-from-one-client-to-another\/","title":{"rendered":"Transferring a Balance or Amount from One Client to Another"},"content":{"rendered":"
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The system doesn’t have a direct tool called “transfer balance between clients”, but you can move an amount from one client’s balance to another’s with a Journal Entry<\/strong> between the two clients’ accounts, while the recorded invoices and payments stay as they are. This guide explains the correct method, its effect on each client’s account statement and balance, and the methods we don’t recommend.<\/p>\n

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Contents<\/p>\n

    \n
  1. When do you need to transfer a balance?<\/strong><\/a><\/li>\n
  2. Recommended method: a journal entry between the two clients’ accounts<\/strong><\/a><\/li>\n
  3. Alternative method: an expense and an income<\/strong><\/a><\/li>\n
  4. Effect on the account statement and both clients’ balances<\/strong><\/a><\/li>\n
  5. Watch out for auto-payment from client credit<\/strong><\/a><\/li>\n
  6. Methods we don’t recommend<\/strong><\/a><\/li>\n
  7. FAQ<\/strong><\/a><\/li>\n<\/ol>\n<\/div>\n

    When do you need to transfer a balance?<\/h2>\n\n\n\n\n\n\n
    Case<\/th>\nEntry<\/th>\n<\/tr>\n
    Client A has a credit balance (they overpaid or made an advance payment), and you want to move it to be used for Client B’s account<\/td>\nDebit Client A \/ Credit Client B<\/td>\n<\/tr>\n
    Client A owes an amount, and Client B will bear it instead<\/td>\nDebit Client B \/ Credit Client A<\/td>\n<\/tr>\n
    An amount was recorded on the wrong client by mistake<\/td>\nDepending on the direction of the amount, as in the two cases above<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
    \n

    \ud83d\udec8<\/span><\/p>\n

    Note:<\/strong> The rule: the account whose credit balance you want to reduce (or whose amount owed you want to increase) is debited<\/strong>, and the account whose credit balance you want to increase (or whose amount owed you want to reduce) is credited<\/strong>.<\/p>\n<\/div>\n

    Recommended method: a journal entry between the two clients’ accounts<\/h2>\n

    Example: Client A has a balance of 1,000, and you want to move it to Client B’s balance:<\/p>\n

      \n
    1. Open Add Entry<\/strong><\/a> from Accounting<\/strong> \u203a Journals Entries<\/strong>.<\/li>\n
    2. Set the date, and write a description, for example: “Balance transfer from Client A to Client B”.<\/li>\n
    3. In the first line, choose Client A<\/strong>‘s account (search by name or code) and enter 1,000 in Debit<\/strong>.<\/li>\n
    4. In the second line, choose Client B<\/strong>‘s account and enter 1,000 in Credit<\/strong>.<\/li>\n
    5. Click Save<\/strong>.<\/li>\n<\/ol>\n\n\n\n\n\n\n
      Account<\/th>\nDebit<\/th>\nCredit<\/th>\n<\/tr>\n
      Client A<\/td>\n1,000.00<\/td>\n<\/td>\n<\/tr>\n
      Client B<\/td>\n<\/td>\n1,000.00<\/td>\n<\/tr>\n
      Total<\/strong><\/td>\n1,000.00<\/strong><\/td>\n1,000.00<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
      \n

      \ud83d\udec8<\/span><\/p>\n

      Note:<\/strong> Don’t transfer more than Client A’s available balance, shown on their page as Client Credit<\/strong>. If their balance becomes negative, some payments that were paid from their credit may be cancelled automatically (see auto-pay invoice using client credit<\/strong><\/a>).<\/p>\n<\/div>\n

      Alternative method: an expense and an income<\/h2>\n

      If the transfer actually goes through the treasury (refunding the amount to the first client and receiving it from the second):<\/p>\n

        \n
      1. Add an Expense<\/strong> for the amount, and choose Client A<\/strong>‘s account as the account, plus the treasury.<\/li>\n
      2. Add an Income<\/strong> for the same amount, and choose Client B<\/strong>‘s account as the account, with the same treasury.<\/li>\n<\/ol>\n

        The effect on the treasury is zero, and both transactions appear in the treasury log. If no money actually moved, the journal entry is more accurate.<\/p>\n

        Effect on the account statement and both clients’ balances<\/h2>\n\n\n\n\n\n\n\n
        <\/th>\nClient A<\/th>\nClient B<\/th>\n<\/tr>\n
        Account statement<\/strong><\/td>\nThe entry appears as a debit transaction (it reduces their credit balance).<\/td>\nThe entry appears as a credit transaction (it increases their credit balance).<\/td>\n<\/tr>\n
        Client Credit<\/strong><\/td>\nDecreases by the amount.<\/td>\nIncreases by the amount, and can be used to pay their invoices.<\/td>\n<\/tr>\n
        Earlier invoices and payments<\/strong><\/td>\nStay as they are.<\/td>\nStay as they are. If auto-payment is enabled, their unpaid invoices are paid from the new balance automatically.<\/td>\n<\/tr>\n
        Revenue and tax<\/strong><\/td>\nNot affected.<\/td>\nNot affected.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

        Watch out for