BAI2 file
A standard bank file format that reports account balances and transactions, used to import bank activity for cash application and reconciliation.
BAI2 was developed for US banking and is still widely used for prior-day and intraday reporting. Many banks now also offer ISO 20022 camt.053 statements, which can carry richer remittance information.
Either way, the file shows what cash arrived. It rarely shows everything about which invoices that cash is meant to pay.
Related terms
- LockboxA bank service that receives a company's customer payments, deposits them and sends back the payment and remittance data for cash application.
- Bank reconciliationMatching the cash balance in the general ledger to the bank statement, accounting for deposits in transit, fees and timing differences.
- Cash applicationMatching incoming payments to the open invoices they pay and posting them in the ERP, so receivables and cash stay accurate.