Accounting Rules:
Based on the discussion in the comments below, accounting rules shall be the same for both inter/ intra branch transactions
- Scenario 1) Disburse loan to a savings from Branch A to Branch B
Loan disbursal should: Debit Loan Portfolio and Credit a Liability account for "Branch Liability Transfer"
Savings should: Credit Savings Control and Debit a Liability account for "Branch Liability Transfer"
- Scenario 2) Transfer from savings to Loan from Branch A to Branch B
Savings withdrawal in Branch A should: Debit Savings Control and Credits a Liability account for "Branch Liability Transfer"
Loan repayment in Branch B should: Credit Income from interest, income from fees, loan portfolio, income from penalty and Debit the account for "Branch Liability Transfer"
- Scenario 3) Transfer from savings(pr-a) to savings(pr-b) where pr-a is a withdrawal and pr-b is a deposit from Branch A to Branch B
savings (pr-a) in Branch A : Debit pr-a' Savings Control and Credits a Liability account for "Branch Liability Transfer"
savings (b) in Branch B: Debits a Liability account for "Branch Liability Transfer" and Credit b's Savings Control
Branch Liability Transfer account shall be defined at an organizational Level