Sub-account Funds Transfer
This section describes how funds are moved from one currency account to another upon request by the merchant.
Process Description
For a sub account transfer to happen, there needs to be more than one currency accounts involved and this therefore means funds are to be moved from one currency account to another by the Account/Finance tesm of GovNet upon request by the merchant.
For example, lets assume the merchant has these currency accounts that is UGX, KES and USD that are used by them to handle collections and Payouts. So the merchant may have collected funds from the UGX currency account and may wish to float another currency account of their choice say KES for the purposes of say availing balance on the KES account so may they can payout from that account later on.
Therefore for the merchant to avail float on the KES currency account, they will request to move funds from the source currency (UGX) in the limits accepted by GovNet to the destination currency account (KES), therefore once the request has been initiated by the merchant from their end, then the accounts/finance team then receives this request and will go ahead and provide forex exchange rates for this transfer (this is because there is conversion needed for the transfer to be completed).
So the finance team will then share these exchange rates to the merchant, for which the merchant will agree to. However when the merchant doesn't agree to the rates, the finance team will take responsibility and look for more better favorable rates and share them again and once the merchant agrees to the exchange rates, then the transfer is approved, the destination currency account(KES) is then credited with the converted value after exchange, while the source currency account (UGX) is debited of the equivalent. At this point then the financial reports are then generated automatically by the system for both on the side of GovNet and as well on the Merchant Dashboard.
Process Flow Diagram
This is a diagrammatic representation of the sub-account funds transfer process for GovNet and below are the different steps involved;-
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