ACH "in transit"

[JaclynK-SLIC]

How should ACH claim payments and ACH premium receipts "in transit" be reported? For example, when an ACH claim payment is initiated on December 31 but the cash doesn't clear the bank until January 1, how is the transaction recorded in the December 31 statement? Also, when a policyholder initiates an ACH premium payment on December 31, but it isn't received until January 1, how is this reported in the December 31 statement?

Thanks!

[BarryW]

Following your examples, I believe I would record the claim payment on my books as of 12/31 as debit claims expense, credit cash and debit reserve, credit change in reserve. This would be a reconciling item on the bank rec.

Same thing with the premium. Debit cash, credit premium income on 12/31. this, too would be a reconciling item on the bank rec.