Finance:Memo posting
From HandWiki
Memo-posting is a banking practice used in traditional batch processing systems where temporary credit or debit entries are made to an account before the final balance update occurs during end-of-day (EOD) processing.[1][2] The temporary entry created during memo-posting is reversed once the actual transaction is posted during batch processing.[3] Some modern banking systems implement real-time posting.
Examples:
- When a customer receives a same-day electronic credit, the actual transaction will be processed during EOD batch posting. To provide immediate access to the funds, the bank creates a temporary memo credit that increases the available balance. Later, this entry will be removed as part of the EOD batch process.
- While ATM withdrawals are officially recorded during EOD batch processing, the withdrawal amount is memo-posted immediately as a debit to prevent account overdrafts before final processing.
References
- ↑ American Bankers Association (1999). Banking & finance terminology. Washington, D.C.: American Bankers Association. pp. 244. ISBN 978-0-89982-105-4. https://archive.org/details/bankingfinancete00amer/page/244/mode/1up?q=%22memo+posting%22.
- ↑ Essentials of cash management (7 ed.). Bethesda, MD: Association for Financial Professionals. September 2001. pp. 101. ISBN 978-0-9708725-2-4. https://archive.org/details/essentialsofcash0000unse_s4k8/page/101/mode/1up?q=%22memo+posting%22.
- ↑ Parker, Donn B.; Smith, David C.; Turner, Geoffrey W.; Sherizan, Sanford (August 1989) (in en). Computer Crime: Criminal Justice Resource Manual. Issues and Practices in Criminal Justice. United States Department of Justice, National Institute of Justice, Office of Justice Programs. pp. 129. https://archive.org/details/micro_IA41152639_0044/page/129/mode/1up. "Memo-posting systems require batch programs that periodically create a new, up-to-date data base and to eliminate the annotations."
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