Balance adjustments ach transfers clear in one day

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Unformatted text preview: ks to add a little more float shows that ethical codes do not guarantee ethical behavior. The odd locations of some “controlled disbursement accounts” today indicate that financial managers need one more reminder: The mere fact that something is legal does not necessarily make it moral or ethical. balance adjustments. ACH transfers clear in one day. For cash concentration, an ACH transfer is made from each lockbox bank or other collecting bank to the concentration bank. An ACH transfer can be thought of as an electronic DTC, but because the ACH transfer clears in one day, it provides benefits over a DTC; however, both banks in the ACH transfer must be members of the clearinghouse. A third cash concentration mechanism is a wire transfer. A wire transfer is an electronic communication that, via bookkeeping entries, removes funds from the payer’s bank and deposits them in the payee’s bank. Wire transfers can eliminate mail and clearing float and may reduce processing float as well. For cash concentration, the firm moves funds using a wire transfer from each lockbox or other collecting account to its concentrat...
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This document was uploaded on 01/19/2014.

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