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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.
Transaction deposits have full liquidity, meaning there are no delays placed on the account holder to access their money. If you have direct deposit from your employer into your checking account, that would be a transaction deposit because once the money posts to your account you will have full access to your funds.