ACH Confirmation Small Amounts
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ACH Confirmation Small Amounts Laurie: Our club finished its audit Sunday. This is the second year we have used the 7 step bivio procedure. Went very well! Highly recommended!! But on to my question: This year, we had a new member join and establish auto debit transfer from his bank to our broker account. Part of the verification process is that the bank
transfers two small deposits ($0.29 and $0.32). The treasurer informs the partner of the amounts of the deposits, and then the partner confirms with the bank. The bank then takes the small accounts back from the account. Subsequently, the partner auto-debits their monthly contribution. During the above process, I, as Treasurer, received four transactions, two deposits and two withdrawals. The deposits were easy, I credited them to the partner. With the transfer back to the bank, I called them a "partial withdrawal", thus generating a "Withdrawal Report", which I then had to review/explain to our audit committee during our recent audit. My question is: Is there an easier way to do this? It seems a little labyrinthine for $0.61. I looked up the HELP/support index, but did not see another method. Just askin... Regards, Irina Personally, since the same small amounts were transferred back to the bank within a few days I wouldn't include the deposits or withdrawals at all. John Rice From: IRINA CLEMENTS <irina39@verizon.net> To: "club_cafe@bivio.com" <club_cafe@bivio.com> Sent: Tuesday, January 21, 2014 11:41 AM Subject: [club_cafe] ACH Confirmation Small Amounts Laurie: Our club finished its audit Sunday. This is the second year we have used the 7 step bivio procedure. Went very well! Highly recommended!! But on to my question: This year, we had a new member join and establish auto debit transfer from his bank to our broker account. Part of
the verification process is that the bank
transfers two small deposits ($0.29 and $0.32). The treasurer informs the partner of the amounts of the deposits, and then the partner confirms with the bank. The bank then takes the small accounts back from the account. Subsequently, the partner auto-debits their monthly contribution. During the above process, I, as Treasurer, received four transactions, two deposits and two withdrawals. The deposits were easy, I credited them to the partner. With the transfer back to the bank, I called them a "partial withdrawal", thus generating a "Withdrawal Report", which I then had to review/explain to our audit committee during our recent audit. My question is: Is there an easier way to do this? It seems a little labyrinthine for $0.61. I looked up the HELP/support index, but did not see another method. Just askin... Regards, Irina Hi Irina, Payment and Withdrawal entries for such a small amount is probably overkill. I'd recommend you create a temporary or suspense account on the Accounting>Accounts screen. Show them as a transfer into the brokerage account from that account when they were deposited and a transfer out of your brokerage account back to suspense when they were returned.Laurie Frederiksen
Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Follow Us on Google+ Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe On Tue, Jan 21, 2014 at 2:41 PM, IRINA CLEMENTS <irina39@verizon.net> wrote:
Laurie: Did that, worked fine. But actually surprized you have not heard of before...I have three members doing ACH transfers from banks or credit unions and all three did identical transactions, that is, transfer in two small deposits under $1, and transfer out both small transactions a few days later. [Transactions in 2012, 2013 and 2014 respectively.] The institutions concerned are two credit unions, one pretty well known [Pentagon Federal] and Capital One, a well known bank. Thanks again, Irina Just a thought. I happened to check my
statement via internet one day and it had an amount on there from a gas station
that I had stopped at the day before. Within a couple of days it had been
removed. I think that is for verification of the account then it is
removed.
Hi Irina, Perhaps they were setting up the ability to do transfers both ways?In my experience the small amounts get transferred in, but they don't get transferred out again. Laurie Frederiksen
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