Forms of non-cash payments and their types

In accounting practice, cash and non-cash settlements are, perhaps, one of the most extensive areas of work. The quality of accounting largely depends on how well, accurately, timely they are conducted.

The category of "forms of non-cash settlements" means the procedure established by law and the procedure for document circulation, reflecting non-cash payment turnover. The establishment of specific forms is carried out by the RF Central Bank, which regulates them in the following categories:

• Calculations related to the implementation of bank transfers;
• Documented letters of credit;
• Calculations made with the help of plastic cards, which are issued by banks and other institutions entitled to do so;
• Checks made with checks.

Let's consider the specified forms of non - cash settlements in more detail.

Settlements related to the execution of a bank transfer are a set of the envisaged sequential transactions that are made in the event that the entity transfers payment orders to the bank. Based on these instructions, the bank transfers money to the beneficiary's account. The recipient in this transaction is the bank in which the accounts of the specific recipient of the money transfer are located, and which is defined as the beneficiary. This procedure ends with the acceptance of the bank - receipt of a payment order sent by the sending bank. In the case where the sender's account and the beneficiary's account are located in the same banking institution, they coincide in the same person. There are credit and debit bank transfers.

Such forms of non-cash payments, like settlements under documentary letters of credit, involve participation in:

• A subject that requests the bank to open a letter of credit - the applicant;
• A banking institution that opens this letter of credit - the issuing bank;
• Beneficiary - a banking institution for which funds are directed;
• Bank, which is involved in the implementation of the transfer operation to the beneficiary - the advising bank.

Letters of credit, depending on whether they provide for changes in their content or cancellation, are irrevocable and revocable. Accordingly, revocable can be changed even if there is no notice to the beneficiary. In contrast to it, irrevocable is such an obligation, which can not be changed and annulled, unless the official consent of the parties is obtained. When making transactions in this way, it is accepted that any letter of credit is initially irrevocable unless another condition characterizing its status is stipulated in its text.

Settlements by means of checks represent such forms of non-cash settlements in which a check is understood as the established form of a security in which the instruction of the drawee is indicated to perform the operation of transferring a specific amount to the check holder. These payments are mostly carried out by entrepreneurs and individual entrepreneurs, who are mainly check holders, as well as individuals who under this procedure act as checkers.

Settlements with the help of very common plastic cards now, provide that such a card is a legal payment instrument with which holders have the ability to make settlements and receive cash. Such operations provide for the existence of uniform unified systems, the structure of which are banks that issue plastic cards and account for their owners.

To reflect the types of transactions considered, non-cash settlements are recorded. This account is part of the established accounting form.