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Defining Bank Transaction Codes. Transaction codes represent the various bank transactions you will use in the Accounts Payable and Accounts Receivable applications. You define transaction codes for types of payments, such as checks or bills of exchange, or for bank services, such as deposits or service charges.
Deposits in transit are amounts already received and recorded by the company, but are not yet recorded by the bank. For example, a retail store deposits its cash receipts of August 31 into the bank's night depository at 10:00 p.m. on August 31. The bank will process this deposit on the morning of September 1.