What is a 'Batch Header Record'

A batch header record is a standard record of information regarding the transfer of a group of data (a batch), usually within the banking field. The batch header record contains information that is crucial for the successful processing of the batch. It identifies the origin of the transaction and summarizes the debits and credits involved. When combined with the entry detail records, the batch header record fully describes the transaction. 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.

BREAKING DOWN 'Batch Header Record'

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. 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.

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.

RELATED TERMS
  1. Batch Trading

    Batch trading refers to an accumulation of orders that are executed ...
  2. Batch Credit Card Processing

    The transmission of all credit card transactions on a given day ...
  3. Continuous Trading

    Continuous trading is a method for transacting security orders. ...
  4. Automated Clearing House - ACH

    An automated clearing house (ACH) is an electronic funds-transfer ...
  5. Recording Fee

    To maintain records of all property purchases and sales, government ...
  6. Stock Record

    A stock record is a detailed listing of securities held by a ...
Related Articles
  1. Investing

    Apple to Launch Latest Batch of Updated iPhones

    Apple is reportedly gearing up new pricier phones with updated internals but with existing designs.
  2. Investing

    Weatherford Floats New Shares, Warrants, and Notes

    Struggling energy industry services company Weatherford International (NYSE: WFT) is raising some funds the old-fashioned way -- by issuing a fresh batch of securities: The company will float ...
  3. Tech

    Bitcoin Price Limps Through February as Cryptocurrency Market Follows

    Bitcoin's price and cryptocurrency markets did not have a good February, as most of them registered significant declines.
  4. Investing

    Keeping Calm, Carrying on With Europe ETFs

    Political volatility is ebbing in Europe, and that is good news for a batch of ETFs.
  5. Investing

    How to use Excel as a general accounting ledger

    Follow these steps to set up a general ledger accounting system in Excel. A small business can use Excel as a substitute for expensive accounting software.
  6. Investing

    Twitter Reveals FBI Requests for Account Data

    The company showed that the FBI has requested records from Twitter accounts as recently as last year.
  7. Tech

    First Bitcoin Futures Contract Expired at $10,900

    The first bitcoin futures contract may have been a victory for cryptocurrency bears.
  8. Small Business

    Code Climate: How it Works and Makes Money

    Learn more about Code Climate and its suite of static program analysis tools used by software developers to produce and maintain high-quality software code.
RELATED FAQS
  1. How is the economic order quantity model used in inventory management?

    Understand what types of costs make up total inventory costs, and learn how the economic order quantity model is used to ... Read Answer >>
  2. What real estate documents need to be recorded?

    Learn how recording documents on real estate transactions, such as deeds, mortgages, easements and taxes, help ensure proper ... Read Answer >>
  3. What is double entry bookkeeping and how does it work in the general ledger?

    Learn about the double entry method of bookkeeping and how it works in the general ledger. Every accounting transaction has ... Read Answer >>
  4. What's the difference between the general ledger and a general journal?

    Keeping records for most organizations require a double-entry bookkeeping system, which revolves around transactions in the ... Read Answer >>
Trading Center