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Definition
A G/L account that the system uses to record checks receivable that you have presented to banks for collection. It denotes that a check has been sent to a bank and is awaiting clearing.
Use
Customizing
Define the collection accounts in Customizing for Financial Accounting (FI), by choosing Bank Accounting ® Business Transactions ® Bill of Exchange Transactions ® Bill of Exchange Receivable ® Present Bill of Exchange Receivable at Bank ® Maintain House Bank Details.
Enter the account number in the Collection Acct field. You must define a separate collection account for each of your banks.
You must also assign each collection account a
bank subaccount.Day-to-Day Activities
When you
present a check to a bank, you specify which collection account you want to post it to. The system then debits the check to this account.When the bank
clears the check or the check bounces, the system clears the check from the collection account.