The formulas
- A date is in the period when its day number is 0 or less
- Overstated when the receipt is booked in the period and the disbursement after
- Deposit in transit: receipt booked in the period, credited by the bank after
- Float = paying bank clear day - receiving bank credit day
How it works
A bank transfer schedule lists every transfer between the entity's accounts in the days around period end, with four dates: when each side was recorded in the books and when each bank processed it. Both book entries belong in the same period. When the receipt is booked before period end and the disbursement after, the same cash sits in two accounts at once.
Kiting uses the float between banks: the receiving bank credits the deposit before the paying bank clears the check, so both balances look funded at period end. A transfer credited by period end and cleared after is the pattern to follow up, especially for round amounts between accounts at different banks.
Illustrative figures only. Check the result against your firm's methodology before relying on it.
Common questions
How many days around period end should I cover?
Enough to span the clearing time between the banks involved, commonly a week or two on each side.
Is every transfer with float a kite?
No. Ordinary transfers have float. A kite is a pattern of transfers that inflate balances, often repeated and timed at period end.
Where do I get the bank dates?
From bank statements or cutoff statements for the days after period end, obtained directly from the bank where possible.
Formulas on this page are the standard definitions.
Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.