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Although funds are credited to the note holder's bank account on the note maturity date, funds are usually not available until the fund transfer and clearing is complete. The number of days after the maturity date when funds are actually deposited in the note holder's bank account varies depending on the issuer's bank and the remittance bank. If the issuer bank and the remittance bank is the same (intra-bank dealing), the number of clearing days is zero; otherwise, the number of clearing days may vary. In either case, for Receivables to create accounting entries on the maturity date, the Lead Days (clearing days) for the payment method must be set to 0. See: Setting Up Notes Receivable.
When you clear a note receivable, the Automatic Clearing program updates its status to Matured.
Accounting for Notes Receivable
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