8. ACH Credit Receipts Processing

 

8.1 Upload of pacs.008 files

ACH credit transfer Receipts can be received as pacs.008.001.08 messages.

8.1.1 ACH Credit upload

File level Validations

On upload of the message, system performs the below validations:

l File format validations - This is done based on the XSD maintained in the 'Schema Definition File Path' for the file type 'ACHCTRECEIPT' in File Parameters Detailed screen PMDFLPRM.

l Validation of Number of transactions and control sum in the file, if available

l Uniqueness of Message ID of the incoming message

If any of the above listed validations fails, the file gets rejected.

Branch & Network Derivation

If the message is received with file envelope, the below details are derived from the file envelope details available for the message:

l Host Code

l Transaction Branch

l Network Code

l Source Code

Debit Value Date Derivation

Settlement Date (FIToFICstmrCdtTrf/CdtTrfTxInf/IntrBkSttlmDt ) received in the inbound pacs.008 message is considered as the Initial Value date for the transaction. If it is a past date, it is moved to current date. Network holiday check and Debit currency holiday check is done for the Value Date and moved forward to next network business day if Value date is a Network holiday.

Receipt Accounting

Receipt accounting is posted if Receipt Account Code is maintained for ACH Credit Receipts Preferences PYDINPRF. The transaction records are grouped based on Branch, Currency and Debit Value Date derived. The consolidated amounts are posted for each group.

The interbank settlement amount (FIToFICstmrCdtTrf/CdtTrfTxInf/ IntrBkSttlmAmt) for each transaction is considered for arriving at the consolidated Amount for the Amount Tag PMT_STTL_AMT.

Sending the transaction records to ACH Credit Receipts Processor

The individual receipt transaction records of the message is sent for processing to ACH Credit Receipts processor.

8.1.2 Receipt Transaction Processing

Outbound payments follows the below listed processing steps:

l Debit Accounting Handoff

l Bank/Account Re-direction

l Reject Validations

l Applying Generic rules for Replacement

l Process Exception Validations

l Repair Validations

l Overridable Validations

l Applying Generic rules for Report

l Authorization Limits check

l Sanctions Check

l Future Value Check

l Pricing

l FX Rate fetch

l External Account Check

l Credit Accounting Handoff

l Information Reporting/Notification XML generation

Debit Accounting Handoff

Debit accounting for the Receipt transaction is posted upfront before the transaction validations are done. Accounting code maintained for Debit Liquidation in ACH Credit Receipts Preferences screen PYDINPRF is fetched for posting the accounting. The accounting is posted for the Transfer Amount of the transaction.

Bank /Account Re-direction

The System performs the Bank/Account re-direction for the Creditor Account and Creditor Bank code if records are maintained in Bank/Account Re-direction maintenances PMDBKRED/PMDACRED.

Cancel Validations

The following cancel validations are done in this step:

l Mandatory Field Validations

l Allowed currency check

l Validation whether FX is allowed for the customer

l All generic validation with Resultant Action 'Cancel'

Mandatory Fields the details received in the payment request and the values populated by the System.

Transfer currency is matched with the Network currency for doing the allowed currency validation.

Inbound Processing Preferences PMDINPRF are checked to see whether FX is allowed for the customer, the lookup priority is same as the existing one:

If the FX Rate preference maintained is 'Not Allowed' the transaction is cancelled. If no preference is found, FX is done by default.

Validations maintained in Generic Validation Framework of Action Type 'Cancel' is evaluated and transaction gets cancelled, if any of the rule condition is satisfied.

On cancel of an ACH CT Receipts, system checks whether the error code is linked to a Return Code for ACH Credit Return processing. If yes, auto return is processed.

If the Error Code is not linked to a Network Return Code, then the transaction is moved to Repair Queue. Only 'Cancel' action is allowed for such transactions.

Note 

Cancel of ACH Receipts from any queue processes the ACH Receipts Return. User can select the Network Return Code in the Queue Action screen.

 

Return transaction Processing is detailed in Section 6.

Applying Generic Replacement Values

For the message elements listed in Generic Validation Framework with Resultant Action as 'Replace', the replacement values are applied.

Process Exception Validations

The following validations are covered in this processing step:

l Credit account is valid or not (credit account record is open and authorized)

Note

No status check is done for the credit customer/account.

 

l Customer Transaction Block Checks

The validation is done based on Customer Transaction Restrictions maintenance PMDCRSTR. If the Network is restricted for the customer, the transaction is moved to Business Override queue

l All generic validation with Resultant action 'Exception'

The transaction is moved to Process Exception Queue in case of validation failure.

Repairable validations

The System performs all generic validation with Resultant action 'Repair'. The transaction is moved to Repair Queue in case of validation failure.

Overridable validations

The following are the Overridable validations, failure of which moves the transaction to Business Override Queue:

Duplicate days check:

l Duplicate Check days is fetched from the Source code maintenance.

l The following parameters are available for duplicate check:

– Debtor Account         

– Creditor Account   

– Transfer Amount         

– Value Date          

– Debtor Bank Code -Debtor Bank Clearing Member ID is considered if this parameter is configured   

– Customer

– Network

– End to End ID

Generic validations maintained with Action Type as 'Override':

Validations maintained in Generic Validation Framework of Action Type 'Override' is evaluated and transaction is moved to Business Override Queue if any of the rule condition is satisfied.

Applying Generic rules for Report

All generic rules maintained with Resultant Action as 'Report' are evaluated. If any rule is satisfied, the transaction is logged in Generic Validation Report log and proceeds with next processing step.

No queue is applicable for this validation.

Authorization Limits Check

Two levels of authorization limits can be maintained (optional) for a Network and source in Source Network Preferences PMDSORNW. If the transfer amount is greater than Authorization Limit 1, the transaction is moved to Authorization Limit 1 Queue.

On approval from Authorization Limit 1 Queue, if the transfer amount is greater than Authorization Limit 2, the transaction is moved to Authorization Limit 2 Queue. If the transfer amount is less than Authorization Limit 2, the transaction proceeds to next processing step.

If the Authorization Limit check is done on booking date, it is not repeated on Value date processing.

Sanction Check

The transaction can be sent for sanction screening to an external system if sanctions screening is enabled for the source and network in Source Network Preferences PMDSORNW. Additional check is done whether Sanctions screening is applicable for the customer in External Customer Maintenance STDCIFCR.

If sanctions screening status is approved, the transaction proceeds with the further processing. In case of seizure, the following accounting entries are passed:

If the status is rejected or interim, the transaction is moved to sanction check queue.

Note

If sanctions is approved on a subsequent date then Activation date alone is rolled over to next date. The transaction processing is re-initiated from initial validations.

 

Future Value Check

The Receipt transactions is segregated as Current dated/Future dated based on The Activation Date. Future valued transactions is moved to Future Value Queue.

The transaction processing of current valued transactions continues with the next step of processing.

Charge /Tax Computation

Charge computation is made based on the "External Pricing Applicable" flag set at Source Network Preferences level PMDSORNW.

If External pricing is not applicable for the Source and Network combination, then Charge and tax for ACH Receipt transaction is calculated based on the Pricing Code linked to ACH Credit Receipts preferences (PYDINPRF).

Pricing components applicable to the price code and the attributes like whether the component is a charge or tax, Pricing currency and the exchange rate type are derived from Pricing Code maintenance (PPDCDMNT).

If “External Pricing Applicable” flag is set as Yes at Source Network Preferences, charge calculation is skipped and system captures the pricing details from External Pricing System.

The transaction gets logged in External Pricing Queue on the below scenario id the response is timed out or the response is not containing the price values to apply.

FX Processing

FX processing is applicable in cases where the transfer currency and credit account currency are different. The Exchange Rate preferences and Small FX limit maintained in ACH Credit Receipts Preferences PYDINPRF is considered while fetching the Exchange Rate.

If External FX rate is applicable system verifies whether customer FX preference is maintained in Inbound Payment processing preferences (Function ID PMDINPRF).If the preference is for 'Retain in Queue' the transaction is moved to Exchange Rate Queue. If the preference is 'Fetch Rate', FX rate request is sent to the external FX system.

Note

If no record is retrieved from Inbound Payment preferences, system  proceeds with send­ing the FX request to External system.

 

If a new value date is returned from External FX system, the existing value date is replaced with the new Value Date received. Credit value date is the new date received.

EAC Check

Customer/Account validity and status check is done by the DDA system as part of EAC call. If the status received from the External system is rejected or interim, the transaction is moved to EAC queue.

Accounting

Accounting template for Credit Liquidation can be set at ACH Credit Receipts Preferences is considered for posting the accounting entries.

Once the accounting entries are handed off system generates the Notification XML (if notification is applicable for the source as maintained in PMDSORCE) and Information Reporting XML in the generic format as done for other payment types.

Note

Matrix for processing of Queue actions for each processing step, is attached in Appendix.

 

8.1.3 Future Dated Transactions

Processing of transactions would be completed till sanction check on the date of receipt itself and is stored in Future Valued transactions Queue. Future dated ACH Receipt transactions are processed by Future Value job.

During beginning of day, future dated transaction job  pick ups the transactions with Activation Date as current date and  processes the transaction from initial validations

8.1.4 Auto-generated Inbound Payments Processing

l On processing originated ACH credit transfers, it is possible that the credit account belongs to the same bank.

l On Us transfer validation is done for the originated ACH Credit transfers before dispatch as below :

– (Creditor agent BIC is a valid BIC for the Host    OR Creditor Agent Member ID is a valid branch identifier for the Network and Host)

AND   Creditor account is a valid account in External Account maintenance

l The system marks the Originated Credit Transfer as 'On Us' and auto generate the inbound transaction, if in ACH Dispatch preferences (Function ID PMDACHDS) the value for field 'Dispatch On Us Transfer' is maintained as 'No'.

Note

It is assumed that Incoming & Outgoing internal transactions  use the same Network Clear­ing GL for accounting.

 

l The processing of auto-generated inbound transaction follows every processing step similar to a normal ACH Credit Receipts.

l Customer FX preference check and FX rate fetch is applicable for auto-generated Receipt transactions.

8.2 ACH Credit Receipts View

You can invoke ‘ACH Credit Receipts View’ screen by typing ‘PYDIVIEW’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

The screen have the following tabs:

Main Tab

This tab have the key fields used in the Originated Credit Transfer processing for view.

Processing Details Tab:

This tab provides the transaction status details and the External System Requests Status details.

Other Details Tab

The screen lists the fields for:

l Instruction for Creditor Agent

l Instruction for Next Agent

l Payment Type Information

 

Charges Information Tab

This tab provides the Charges Information Agent details and system computed charge details.

R-Transactions Tab

This tab provides the list of R-transactions processed for the original transaction.

 

8.2.1 ACH Credit Transfer Receipts Summary

You can invoke ‘ACH Credit Transfer Receipts Summary’ screen by typing ‘PYSIVIEW’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

You can search using one or more of the following parameters:

l Transaction Identification

l Transaction

l Exception Queue

l Network Code

l Transfer Currency

l Transfer Amount

l Booking Date

l Value Date

l Activation Date

l Transaction Branch

l Source Code

l Source Reference Number

l Instruction Identification

l End to End ID

l Customer Number

l Company Identifier

l Debtor Account

l File Reference Number

l Batch Identification

l Creditor Bank Member ID

l Creditor Account

l FX Reference Number

l Linked Transaction Reference

Once you have specified the search parameters, click the Search button. The system displays the records that match the search criteria.

You can perform following actions:

Process Return

You can click on Process Return button to initiate Return Transaction. When you click on Process Return, a new standalone ACH Credit Receipts-Return screen (Function ID: PYDITRTN) is opened.

Process Reversal

You can perform Reversal of ACH Credit Receipts, using 'Process Reversal' option. When you click on Process Reversal, ACH CT Receipts-Reversal input (Function ID: PYDRVITN) screen is opened.

 

8.3 ACH Inbound File Browser

You can view the inbound file records received for ACT CT Receipts and Originated ACH CT Returns, using this screen.

You can invoke ‘ACH Inbound File Browser’ screen by typing ‘PMSINACH’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

You can search using one or more of the following parameters:

l Internal File Reference

l Message Identification

l Network Code

l File Name

l Source Code

l File Upload Status

l File Type

l Error Code

l Received Date

l File Status (Pending/Exception/Processed)

l Parsing Status (Null/S- Success)

Once you have specified the search parameters, click the Search button. The system displays the records that match the search criteria.

Double click a record or click the ‘Details’ button after selecting a record to view the ACH Network Summary for the selected record.

Note

This Browser is a common browser for files received from the Network for any ACH CT/ACH DD transaction types. It supports pacs.008/pacs.004 and pacs.002 files received.

 

Following actions are allowed:

 

8.3.1 View Processed File Details

Click on View Processed File Details button to invoke Pacs.008 Inbound File Browser sub screen or You can invoke by typing ‘PMSVFILE’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

You can search using one or more of the following parameters:

l Internal File Reference

l Network Code

l Source Code

l File Name

l Received Date

l Message Identification

l Status Code

Once you have specified the search parameters, click the Search button. The system displays the records that match the search criteria.

You can perform following action:

8.3.1.1 View Transaction Records

Click on View Processed File Details button to invoke ‘View Transaction Records’ sub screen or You can invoke by typing ‘PMSVWTXN’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

You can search using one or more of the following parameters:

l Internal File Reference

l Network Code

l Source Code

l File Name

l Received Date

l Message Identification

l Status Code

Once you have specified the search parameters, click the Search button. The system displays the records that match the search criteria.

You can perform following action:

You can retry the records in Exception status from the below listed screens also:

l View Transaction Records of Inbound pacs.004 file (Function ID: PMSVWTXR)

l View Transaction Records of Inbound pacs.007 file (Function ID: PMSVWTXV)

l View Transaction Records of Inbound pacs.003 file (Function ID:PMSTNPC3)