The entire process resulting from a check issue and mail by a payer company to a payee company (i.e., mail float, processing float, and clearing float) is disbursement float to the payer company and is collection float to the payee company.

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Disbursement float refers to the time between when a company issues a payment and when the funds are actually withdrawn from their account, while collection float refers to the time between when a company receives a payment and when the funds are actually available for use. Therefore, the entire process resulting from a check issue and mail by a payer company to a payee company would result in disbursement float for the payer and collection float for the payee.

The Entire Process Resulting from a Check Issue and Mail