USA ACH credit and debit

[Gappi]

what is ACH (automated clear housing ) debit or credit and how does it differ from accounting debit and credit in a general ledger. Is there a correlation. For example if I am a bank and I am sending money how does it affect ACH and if I am receiving money how does it affect ACH?

 

[Steve-LevelUp]

ACH is just a different type of wire payment. It is slower than a wire payment, but it is automatic. ACH allows a company to debit or credit a customers or vendors account. the accounting entries are not different, it is only a mechanism for paying vendors or collecting payments from customers.

 

[Samir]

An ACH is no different than any other transaction in accounting. It's akin to how a check or cash are both treated as cash.

 

[kirby]

Your ACH accounts ARE indeed different. I suggest you contact your system provider (e.g. Jack Henry Scymitar) and go over this with them. Usually involves clearing accounts that are system driven but need you to watch that they do clear on a DAILY BASIS.

 

[Samir]

Your ACH accounts ARE indeed different. I suggest you contact your system provider (e.g. Jack Henry Scymitar) and go over this with them. Usually involves clearing accounts that are system driven but need you to watch that they do clear on a DAILY BASIS.

But ACH are no different in needing clearing accounts than other forms of payment, ie they're not really a fundamentally different concept in terms of debits and credits.