ACH credit and debit

USA Discussion in 'General Accountancy Discussion' started by Gappi, Oct 14, 2018.

  1. Gappi

    Gappi

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    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?
     
    Gappi, Oct 14, 2018
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  2. Gappi

    Steve-LevelUp VIP Member

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    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.
     
    Steve-LevelUp, Oct 14, 2018
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  3. Gappi

    Samir VIP Member

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    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.
     
    Samir, Nov 8, 2018
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  4. Gappi

    kirby VIP Member

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    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.
     
    kirby, Nov 10, 2018
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  5. Gappi

    Samir VIP Member

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    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.
     
    Samir, Nov 12, 2018
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