Defining Accounts for Inter-Branch Transactions

A transaction that takes place in a branch of your bank may involve accounts that are maintained in another branch. For example, a customer has an account in the Head Office branch and approaches another branch of the bank for a cash withdrawal.

For each combination of branches that may be involved in an inter-branch transaction, you can define the currency and the respective customer accounts to which the related accounting entries will be posted.

The accounting entries for such inter-branch transactions can be routed in one of the following ways:

• Directly - where each branch will have a direct accounting relationship with all other branches
• Through a Regional Office -- where two branches involved in a transaction will interact through a common RO
• Through the Head Office -- where the two branches involved in the inter-branch transaction will interact only through the HO.