AUTOMATED CREDIT SYSTEM

A method of making payments direct to a creditors bank without using a cheque Operates the electronic transfer of funds between accounts within the banking system (automated clearing system) When business uses automated transfer,
input into books Of the business
INFORMATION

bank for processing

 ADVANTAGE , operates with very reduced amount of paperwork. Used for processing ;
Standing orders Direct debits Salaries (monthly) Wages (weekly)

PROCEDURE
E.g Salaries of staff.
Produce file with the details of staff
BIL NAME
1. 2. 3. HASLIZA ZAHARI MADINAH SHAD NABIHA SAHIDI

AMOUNT (RM)
15000.00 30000.50 25730.70

BRANCH
MELAWATI SANDAKAN DAMANSARA

ACCOUNT NUMBER
9508346753 6750325872 2497021968

Send to automated credit processing centre, (magnetic tape/floppy disk/digitally on ISDN line)

 File is submitted into computer then sorted into information required by bank. Information can be read by banks computer system On the date; 1.salary of staff is credited into account 2.companys account is debited debited with total amount paid The automated credit items are recorded on archive discs and business record will be updated