Deposit Float LE ?20 LuD?LI Processing Float Availability Float Deposit Float: time during which the check received by the firm remains uncollected funds 9-11
9-11 Deposit Float Deposit Float: time during which the check received by the firm remains uncollected funds. Processing Float Availability Float
Earlier Billing Accelerate preparation and mailing of invoices computerized billing invoices included with shipment invoices are faxed advance payment requests preauthorized debits 9-12
9-12 Earlier Billing Accelerate preparation and mailing of invoices computerized billing invoices included with shipment invoices are faxed advance payment requests preauthorized debits
Preauthorized Payments Preauthorized debit The transfer of funds from a payors bank account on a specified date to the payee's bank account; the transfer is initiated by the payee with the payor's advance authorization 9-13
9-13 Preauthorized Payments Preauthorized debit The transfer of funds from a payor’s bank account on a specified date to the payee’s bank account; the transfer is initiated by the payee with the payor’s advance authorization
Lockbox System Lockbox A post office box maintained by a firms bank that is used as a receiving point for customer remittances 9-14
9-14 Lockbox System Lockbox A post office box maintained by a firm’s bank that is used as a receiving point for customer remittances
Lockbox Process Customers are instructed to mail their remittances to the lockbox location Bank picks up remittances several times daily from the lockbox Bank deposits remittances in the customers account and provides a deposit slip with a list of payments Company receives the list and any additional mailed items 9-15
9-15 Lockbox Process Customers are instructed to mail their remittances to the lockbox location. Bank picks up remittances several times daily from the lockbox. Bank deposits remittances in the customers account and provides a deposit slip with a list of payments. Company receives the list and any additional mailed items