Which code indicates if an Entry contains Addenda?

Which code indicates if an Entry contains Addenda?

• A. Entry Code
• B. Addenda Record Indicator
• C. Transaction Code
• D. Batch Code

Answer: (B)

The Addenda Record Indicator is the correct choice because it specifically denotes the presence of addenda records associated with an ACH entry. In ACH transactions, sometimes additional information needs to be provided alongside the primary entry. This is where addenda records come into play; they are supplementary data that can help in processing specific transaction types or providing extra details for the transaction. The Addenda Record Indicator allows systems to identify whether an entry has one or more addenda records attached to it, ensuring that any necessary supplementary information is processed correctly. Understanding how the Addenda Record Indicator works is important for facilitating accurate transaction processing, compliance with payment standards, and ensuring that all relevant information is conveyed during the ACH transaction cycles. This capability is especially crucial for industries or organizations that require detailed tracking of transactions or additional context related to payments.

The Addenda Record Indicator is the correct choice because it specifically denotes the presence of addenda records associated with an ACH entry. In ACH transactions, sometimes additional information needs to be provided alongside the primary entry. This is where addenda records come into play; they are supplementary data that can help in processing specific transaction types or providing extra details for the transaction. The Addenda Record Indicator allows systems to identify whether an entry has one or more addenda records attached to it, ensuring that any necessary supplementary information is processed correctly.

Understanding how the Addenda Record Indicator works is important for facilitating accurate transaction processing, compliance with payment standards, and ensuring that all relevant information is conveyed during the ACH transaction cycles. This capability is especially crucial for industries or organizations that require detailed tracking of transactions or additional context related to payments.