The Incoming Outgoing Collections Procedure helps to process and accurately track incoming and outgoing bank collection items carefully and efficiently to ensure incoming collections are paid and outgoing collections are received. This procedure described the steps that need to be followed when processing bank collection items. It applies to all incoming and outgoing collection items and the personnel responsible for processing those items. (4 pages, 1188 words)
An incoming bank collection is an item which is not negotiable as cash, such as an NSF check or a draft, drawn on an account at ABC Bank, or an item in which ABC bank is the paying agent, such as an oil or gas lease. For outgoing collections, you should complete a collection form and note the form number in the logbook, send the collection item form and the item to the bank it is drawn on, and keep the remaining copies of the collection form and the copy of the item in the outgoing collections file for future reference.