What is an Advice/Authority to Debit Account (ADA)?

An Advice/Authority to Debit Account (ADA) refers to the accountable disbursement document which serves as notice to the Modified Disbursement System – Government Servicing Bank (MDS- GSB) (i.e., Landbank of the Philippines, Development Bank of the Philippines, or Philippine Veterans Bank) to debit the agency’s MDS sub- account for payment of accounts payable due to external creditors, Retirement Gratuity (RG) /Terminal Leave (TL), transfers to Local Government Units (LGUs), e.g. Internal Revenue Allotment (IRA), Special Shares from Revenues for LGUs, and credit the current/savings account (CA/SA) of the creditor/retiree.

[Read: What is an Accounts Payable]