How to transfer funds from bank account to another bank account?

Hi all,

My client's business operation involves receiving cash/check from customers. If the payment is a check, it will be

1) Deposit immediately into a bank account

2) Used immediately to pay vendors

3) Wait for a week or two before deciding to do Options 1 or 2

 

Since there's no way to transfer a check from customer to vendor, I am trying to create a dummy "check" bank account to represent option 3 when checks arrive. Then, I would process an outgoing payment from this dummy check account to pay vendors to represent option 2, or process a deposit from dummy check account to a real bank account to represent option 1. However, I am having trouble finding ways or workarounds to initiate transfer funds from one bank account (or petty cash, check account) to another account. Would this function most likely be in cash receipt journal? payment journal?

Any help or suggestion is greatly appreciated!

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  • Create a special "Cash in transit" account in CoA and use this as "other side" in postings.
    in General Journal(s), you will need 2 lines for each transaction:

    Line 1: type BankAccount , No Acc1 Cr Amt $100 balance type GL, balance # this "CashInTransit" acc #
    Line 2: type BankAccount , No Acc2 Db Amt $100 balance type GL, balance # this "CashInTransit" acc #

    Intermediate account is necessary because NAV doesn't allow Type=BankAcc both in AccountType and BalanceAccountType.

    To distinguish such transactions, create some special GL Journal Batch(es), better with their own NoSeries.
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