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Defining Bank Transaction Codes. Transaction codes represent the various bank transactions you will use in the Accounts Payable and Accounts Receivable applications. You define transaction codes for types of payments, such as checks or bills of exchange, or for bank services, such as deposits or service charges.
BREAKING DOWN 'Transaction Deposit'. Transaction deposits must be held in reserve by the bank at all times; they stand in contrast to time deposits and even deposits into a savings account, which may have monthly limitations on the number of transactions or transfers allowed.