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Batch Header Record

A batch header record contains metadata that identifies the origin and purpose of a batch of transactions, such as payments. It includes details like the originating company, effective date, and codes to classify transactions as salaries, bills, etc. This allows the batch to be processed efficiently as a group by providing a summary of debits, credits and key details for the entire batch upfront. Batch header records are commonly used in banking transactions but also for transfers between businesses and organizations.

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103 views2 pages

Batch Header Record

A batch header record contains metadata that identifies the origin and purpose of a batch of transactions, such as payments. It includes details like the originating company, effective date, and codes to classify transactions as salaries, bills, etc. This allows the batch to be processed efficiently as a group by providing a summary of debits, credits and key details for the entire batch upfront. Batch header records are commonly used in banking transactions but also for transfers between businesses and organizations.

Uploaded by

Niño Rey Lopez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Batch Header Record

What Is a Batch Header Record?


A batch header record is a standard piece of meta-information regarding the
transfer of a group of data (a batch), usually within the banking field. The batch
header record contains identifies the origin of a transaction and summarizes the
debits and credits involved which is crucial for the successful processing of the
batch. This is a key component of batch processing.

Although the batch header record is predominantly used in banking transactions,


it is also used in other important transfers, such as between businesses,
departments, and hospitals.

KEY TAKEAWAYS

 In banking, several transactions are often bundled together in a batch for


more efficient processing and clearing.
 The batch header record is the information and meta-data regarding a
particular batch of transactions, used in ACH clearing.
 Batches may be labeled in the header record for such purposes as salaries
or accounts payable.
How Batch Header Records Work
In banking, the batch header record is used in the automated clearing
house (ACH), which is a batch-oriented electronic funds transfer system. To
begin, the transaction is given a file header record to identify the origin and
characteristics of the file. This is followed by a number of batches, each with its
own batch header record. When combined with the entry detail records, the
batch header record fully describes the transaction.

Each batch also contains entry detail records, each of which can be followed by
one or more addenda records, as necessary or as required by the SEC code
being used.

Batch processing is the processing of transactions in a group or batch. No user


interaction is required once batch processing is underway. This differentiates
batch processing from transaction processing, which involves processing
transactions one at a time and requires user interaction.

While batch processing can be carried out at any time, it is particularly suited to


end-of-cycle processing, such as for processing a bank's reports at the end of a
day or generating monthly or biweekly payrolls.
Information Included in the Batch Header Record
Typically, a batch header record begins with a record type code, a numerical
code that indicates that the record is a batch header record. The batch header
record also identifies the company or organization from which the batch to follow
originated. It will also identify the purpose of the entries found in the batch. For
example, an originator might include a code like "Salary" or "Electric Bill" in the
batch header code to indicate the purpose of the transactions to be described in
the batch entries.

The batch header code will further indicate the effective entry date of all
transactions included in the batch. This data applies to all the entry detail records
in the batch.

If the originator wishes to vary or change any of the effective entry date or
purpose data, they need to create a new batch in order to classify that data under
the batch header record. For example, if an originator wants to process
payments for both regular salary and employee bonuses, they need to create two
batches with two batch header records, one for "Payroll" and one for "Bonuses."
The information included in the batch header record is essential to the efficient
and accurate processing of the batch.

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