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Fed Moves to Actual Availability Accounting Practices for Check Services

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Fed Moves to Actual Availability Accounting Practices for Check Services

Beginning March 9, the Federal Reserve will move to actual availability accounting to credit our direct send and consolidated shipping customers. Actual availability means that the Fed’s check processing sites will pass credits for cash letters and return letters received from their direct send and consolidated shipping customers based on the amount indicated on the cash letter and the appropriate deposit deadline met. As a result, the use of “rainbow sheets” (or provisional credit) will be discontinued at all Reserve Bank offices.

Actual availability will align Federal Reserve accounting practices with those of the private sector and eliminate your need to manage different processes for reconciling correspondent and Federal Reserve deposits. It will also reduce the risk of incorrect entries and the need for as-of adjustments that can occur as part of the current rainbow sheet process.

This change will help the Reserve Banks serve you better by instituting standard accounting practices across all offices. We also expect to reduce reconcilement issues, which should improve our timeliness in crediting errors and adjustments.

A new Actual Availability Depositor Reference Guide was mailed to all direct send and consolidated shipping customers in early February. This document, which can be found online at www.frbservices.org, will serve as a valuable resource to help you prepare for this change. We encourage you to refer to the guide and share the information with all of your staff members who may be affected by the upcoming change.

We greatly appreciate your continued business relationship with the Federal Reserve and your support as we enhance our payment services processes to serve you better.

Please contact your account executive with any immediate questions or concerns.

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