Payment float
In accounting, payment float means the time between issuing a payment and the cash leaving the bank account — for a check, from the day it is written to the day it clears. The outstanding checks at period end are the float the bank reconciliation carries.
Not a rule. Bookkeeping convention — not codified. US GAAP governs recognition, measurement and presentation, not bookkeeping mechanics. Sources
The lesson that teaches this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- DPO (a ratio of AP to cost of revenue)
- outstanding check (one item of it)
Components that render the terms it depends on
No component names this concept outright, but it's built from terms that components do name. These render reconciliation, account, period.
2Cards
Family spec3Payments
Family spec4Swaps & FX
Family spec- CashFlowStatementOperating / investing / financing.
- TrialBalanceAll accounts with the debit=credit proof.
- PeriodPickerFiscal-aware. Never assumes January.
- FluxAnalysisPeriod-over-period explanations.
- ProfitAndLossP&L with period comparison and variance.
- ReportHeaderEntity, statement, period, basis, currency, as-of. Every figure states its basis.
- StatementTableThe shared shell: hierarchy, periods, rules.
- StatementToolbarBasis, period, comparison, currency, consolidation.
- AccountPickerShows the normal balance. Blocks non-postable accounts.
- AccountTieOutEvery BS account, proven against its evidence.
- ChartOfAccountsHierarchy, statement mapping, unsupported-account flags.
- AccountRegisterGL detail with a running balance.
- DimensionPickerEntity always required; renders what the account demands.
- RevenueWaterfallDeferred balance recognizing by future period.
10Receivables (AR)
Family spec11Payables (AP)
Family spec13Metrics & analysis
Family specNearby in the catalog
No component names this concept outright. These sit in the same part of the system.
Also in Cash
Defined in Lexicon. This page is generated from that document, so the two can't disagree.