OUTWARD BILLS FOR COLLECTION
The bills, which are sent to their cities banks for the local clearing in that city, are called outward bills for collection.
PROCEDURE
- The cheques that are banks in other cities are separated.
- They are entered in the OBC register, the number is written on the stamps.
- The OBC forwarding schedules / (Annexure) are prepared for the different branches.
- The respective cheques are attached with the schedule.
- Two authorized officers sign the schedule.
- The office copy is filled and the original schedule is mailed.
- On clearance the respective banks send back the OBCS along with IBCA. Inter branch credit advice.
- The OBC no are checked for the OBC register and the received any entry is made.
- Charges i.e. commission charges and postages charges are deducted from the A/C.
Vouchers of following entries are made.
Party A/C Dr
Commission Charges Cr
Postage charges Cr
At the end of the day the contra vouchers are.
OBC collection Dr
OBC lodged Cr
OBC collection Dr
OBC lodged Cr
INWARD BILLS FOR COLLECTION
The bills are received from other banks out of city for the local clearing are called inward bill for collection.
PROCEDURE
- The OBC of the other branches will be the IBC’s of this branch. So an OBC forwarding schedule is received by mail.
- The cheques are entered in the IBC register. The IBC numbers are allotted to them.
- The cheques are lodged for clearing.
- After realization, an IBCA is prepared and mailed to the branch.
- At the end of the day two contra vouchers are made & posted.
IBC collection Dr
IBC logged Cr
IBC Collection Dr
IBC lodged Cr
BALANCING THE REGISTER
At the end of the day, all the registers are balanced with the computer balances. The heads and checked are as follows.
- DD payable
- IBC collection.
- MT payable.
- OBC lodged.
- OBC Collection.
- TT payable.
- IBC lodged.
- Bills payable. P.S. issued.
- Bills payable P.O. issued.
If the payables are not cleared for a lot of days, a reminder is sent to the respective branches.
