Zero Balance Account
A Zero Balance Account (ZBA) is a checking account in which a balance of zero is maintained by automatically transferring funds from a master account in an amount only large enough to cover checks or payments presented.
The benefits of a ZBA account are as follows:
- Segregation of the disbursement of cash
- Elimination of the need for internal bank account transfers
- Maximizes funds available for investment
Your organization has the ability to flag a bank account as a Zero Balance Account and assign it to a Master Bank Account. In addition, New World ERP now allows for the automatic wire transfer of funds between your Main and ZBA accounts triggered by the reconciliation of payments. See Payment Reconciliation Batch Processing for more information on this feature.
Bank Account Maintenance
On the Bank Account Maintenance page, the Bank Reconciliation Section allows you to define a bank account as a Zero Balance Account.
To access the Bank Account Maintenance page, go to Maintenance > new world ERP Suite > Banks, select a bank and drill down to the Bank Account page.
See Also
Set Up Banks and Bank Accounts