Setting Up EFT Reason Codes for Direct Debits

To set up EFT reason codes, use the EFT Reason Codes component (EFT_BANK_REASON).

This section provides an overview of EFT reason codes and discusses how to set up reason codes.

Page Used to Set Up EFT Reason Codes for Direct Debits

Page Name	Definition Name	Navigation	Usage
EFT Reason Codes (electronic funds transfer reason codes)	EFT_BANK_REASON	select Set Up Financials/Supply Chain, then select Common Definitions, then select EFT, then select EFT Reason Codes, then select EFT Reason Codes	Set up reason codes for direct debit processing.

Understanding EFT Reason Codes

In some countries, the bank sends an EFT file after you submit direct debits to the bank confirming whether the payment was collected. The file contains a reason code for each payment record that indicates whether it was collected. If payment is not collected, the reason code indicates why it was not collected. You run the DD_AR_BANK Application Engine process to process the bank EFT file and to update the status of the Direct Debit Control record. When you run the Receivable Update process, it creates the appropriate accounting entries based on the change to the control record.

EFT Reason Codes Page

Use the EFT Reason Codes page (EFT_BANK_REASON) to set up reason codes for direct debit processing.

Navigation

select Set Up Financials/Supply Chain, then select Common Definitions, then select EFT, then select EFT Reason Codes, then select EFT Reason Codes

Image: EFT Reason Codes page

This example illustrates the fields and controls on the EFT Reason Codes page. You can find definitions for the fields and controls later on this page.

Reason Code

Enter a user-defined reason code and description.

Event

Select the appropriate direct debit business event. Values are:

Cancel: Changes the status in the Direct Debit Control table (PS_DD_CONTROL) for the direct debit to Rejected.

Cash at Due Date: Changes the status in the Direct Debit Control table to Complete.

Set up the following reason codes for the RID files that are used in Italy. Other countries can use this as an example to set up their reason codes.

Reason Code	Description	Action
50001	Customer bank account closed.	Cancel direct debit.
50003	Insufficient funds.	Cancel direct debit.
50004	Unapproved by customer.	Cancel direct debit.
50006	Incorrect due to technical problems at issuer bank.	Cancel direct debit.
50007	Incorrect due to technical problems at customer bank.	Cancel direct debit.
50008	Payment stopped by issuer.	Cancel direct debit.
50009	Incorrect due to nontechnical reasons.	Cancel direct debit.
50010	Payment collected.	Apply cash.