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
-
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.
-
Treasury has increasingly become a strategic business partner across all areas of the business, adding value to the operating divisions of the company. Managing activities that were traditionally carried out within the general finance function. Learn about the drivers for this change.
-
The objective of funding Management is to implement strategies that lead to the best borrowing rates and lower investment costs. Learn how treasury aids in loans and investment management functions.
-
Have you ever wondered what is actually a Bank Statement and why it is needed. What is the information that is available in a bank statement?
-
Bank reconciliation process is targeted to validate the bank balance in the general ledger and explain the difference between the bank balance shown in an organization's bank statement. Learn the reasons for existence of differences between the two.
-
In the previous article we talked about the meaning of the account reconciliations. Now as you now the definition of account reconciliation, in this article let us see why it is carried out.
-
Learning objectives for this lesson are: Meaning of Order to Cash Process; Sub Processes under Order to Cash; Process Flow for Order to Cash; Key Roles & Transactions; Key Setups/Master Data Requirements.
-
Account Reconciliation – How? Learn the three key attributes to perfom account reconciliation.
-
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.
-
What is Invoice to Cash Process
In this article, we will explore the business process area known as; Invoice to Cash; Also known as I2C. Learning objectives for this lesson are: Meaning of Invoice to Cash Process; Sub Processes under Invoice to Cash; Process Flow for Invoice to Cash; Key Transactions Fields; Key Setups/Master Data Requirements.
