ERPNext Best workflow for endorsing a customer check to a supplier without using Journal Entry?

ERPNext
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Hi everyone,

I am looking for a best-practice workflow in ERPNext for handling customer checks that are later endorsed (transferred) to a supplier.

Currently, our process looks like this:

  1. We receive a check from a customer $\rightarrow$ We create a Payment Entry (Receive). The check goes into a “Cheques on Hand” (Asset) account.

  2. Later, instead of cashing it, we endorse this check to a supplier $\rightarrow$ We have to create a second Payment Entry (Pay) to clear the supplier’s invoice using the same “Cheques on Hand” account.

This requires making two completely separate transactions at different times.

My Question:

Is there a way to handle or streamline this endorsement process more efficiently within the Payment Entry system?

Note: I do not want to use a Journal Entry for the endorsement step, because the endorsement doesn’t happen at the exact moment we receive the check from the customer. The check stays in our custody for a while before we decide to pass it to the supplier.

Any advice, custom scripts, or standard workflows used in countries with heavy check usage (like Turkey) would be highly appreciated!

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Double-entry accounting and audit trails are not something to be bypassed for convenience. Your current workflow is appropriate. It allows proper tracking of the customer’s deposit/payment and the transfer of the check to your supplier for purchase invoice. These should remain two separate transactions (because they occur on different dates).

What’s the complaint? Do you want to combine the process into one entry, or do you want even better tracking for the state/location of the actual check while in your possession and after transferring to the supplier?

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Here is what I am looking for: I want to handle this process within a single workflow and increase traceability. Yes, the endorsement happens at a different time, but it would be great if there were a tool, like a button, to easily change the status of the check.

For example, a dedicated button on payment entries made via check, along with a field for endorsement details. Most accounting software used in Turkey generally provides this kind of native support.

Actually, I have another question on my mind. My customers sometimes share their credit card details with me to make a payment, and I pass those same credit card details directly to my supplier. In this scenario, my customer pays their debt to me, and at the exact same time, I pay my debt to my supplier. Since these two actions happen simultaneously, can we record both the incoming and outgoing payments in a single entry? Is this a logical approach, and does the system support it?

Please forgive me if my questions seem illogical; I am not an accountant, and I am currently trying to learn both the software and accounting principles at the same time.