Collection Float
Collection Float is the time spent to collect receivables. Collection float is the sum total of time taken by Invoice Float; Mail Float; Processing Float and Availability Float. Explore more!
Invoice to Cash– Collection Float
Collection Float is the time spent to collect receivables.
Collection float is the sum total of time taken by Invoice Float; Mail Float; Processing Float and Availability Float
1. Invoicing float is the time period between the delivery of goods or services to the customer and the customer's receipt of the bill, generally by mail. It is the time it takes a company to record its delivery of service or
goods and then to produce and mail a bill.
2. Mail float is the time taken by Postal or Courier Service to deliver the customer's payment.
3. Processing float is the period between the receipt of the payment and its deposit into the company's bank account and includes the time it takes to record the payment in the accounting system.
4. Availability float is the time it takes the deposited check to clear the customer's account and for good funds to be available to the company for disbursement.
Related Links
You May Also Like
-
Complete Bank Reconciliation Process
Bank Reconciliation Process is a eight step process starting from uploading the Bank Statement to finally posting the entries in General Ledger. Learn the Eight Steps in Detail!
-
The Cash Clearing process enables you to track amounts that have actually cleared your bank. Till reconciliation happens the amounts are parked in 'Cash Clearing Account'.
-
Why enterprises need cash management. What is the purpose of having a well defined cash management process?
-
In automated clearing, Bank statement details are automatically matched and reconciled with system transactions. Learn how this process works and what are the perquisites to enable the same.
-
Although there is no straight forward answer to the question, how to best organize a treasury function, this article provides an generic view of the way large MNCs creates departments or sub-functions within the treasury function.
-
Cash Management - Integrations
Cash Management integrates cash transactions from various sources like Receivables, Payables, Treasury and creates reconciliation accounting entries after matching transactions with Bank Statements.
-
Unravel the mystery behind clearing. Why we use clearing accounts. Find the relevance of word "Clearing" in business context.
-
The topic for this lesson is "Introduction to Cash Management Process". We start with the learning objectives for building requisite functional expertise in cash management process.
-
The Cash Management component ensures that the enterprise has sufficient liquidity for payments that are due and to monitor payment flows. Learn how treasury plays an important role in cash management for the enterprise.
-
Account Reconciliation – How? Learn the three key attributes to perfom account reconciliation.
