![]() See FSP 6.9.1.3 for discussion of classification in the statement of cash flows when a paying agent is used. This may be true even if rebates are received from the card issuer based on the volume of use. Online Banking gives you control of your finances. You can also use Bill Pay to pay your bills in minutes from one simple site. Trade payable designation may still be acceptable if (1) payment is made quickly (within the month) and (2) the arrangement is more for convenience than financing. Check account balances and transactions, transfer funds between accounts, and set up Online Banking Alerts to notify you about important activity in your accounts. Although the reporting entity may now be legally obligated to make payment to the financial institution, this arrangement may still be classified as a trade payable since the payable arose from normal operating purchases and no financing costs are involved. In some circumstances, the use of these payment mechanisms may result in a change in the legal form of a reporting entity's liability because it pays a paying agent who had paid off and extinguished the reporting entity's obligation to a third-party vendor. Clearing accounts Vendors (often of health care companies) have access to a bank account in the reporting entity’s name and can post charges directly to that account.Generally, e-payables allow for larger dollar purchases than p-cards, and are also generally payable 30 days after billing period closure, similar to standard credit card arrangements. ![]()
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