3Receivables

This chapter contains the following:

Reversals

Use the Automatic Receipts Reversal process to identify the rejected settlements in a settlement batch and reverse the corresponding receipts. The process only reverses automatic receipts, not manual receipts.

Settings That Affect Reversal of Automatic Receipts

Before you can reverse automatic receipts in a settlement batch, you must map the ISO rejection codes to a reversal category. This mapping is used to derive the reversal category for reversing the receipt.

Use the Manage Reversal Reason to Category Mappings setup task to map the ISO rejection codes with corresponding reversal categories.

How Receipts are Reversed

When a bank can't process an automatic remittance of a record, the record is sent back for reversal. The returned record consists of two bank files:

  • Reversal file - pain message 002.001.03. This message provides technical details of the reversals that are needed to reverse a receipt.

  • Bank statement files CAMT-053.

The following steps outline the reversal process:

  1. The Retrieve Funds Capture Acknowledgments process in Payments processes the pain message and sends information on the rejected receipts to Receivables.

  2. The Automatic Receipts Reversal process receives the information on the rejected receipts and looks for the mapping between the rejection code and reversal category.

  3. If a mapping exists for the rejection code, the corresponding receipt is reversed. If a mapping doesn't exist, the status of the corresponding receipt is set to Confirmed.

  4. To reverse receipts that are set to Confirmed, you must define the mapping and run the Automatic Receipts Reversal process to reverse the corresponding receipts.

    Note: Reconciled receipts aren't reversed by the Automatic Receipts Reversal process. You must manually unreconcile the receipts before reversing them.
  5. After the Automatic Receipts Reversal process completes, the Reversal Status Report is generated. Use the report to review the automatic receipt reversals processed in a settlement batch. The report displays details of the:

    • Receipts that are reversed along with the reversal reason

    • Receipts that aren't reversed and the reason they weren't reversed

  6. The report is automatically run after the Automatic Receipts Reversal process. However, you can also run the report manually.

To automatically reverse receipts in a settlement batch, you must map the ISO rejection codes to a reversal category. This mapping is used to derive the reason for reversing a receipt.

Use the Manage Reversal Reason to Category Mappings setup task to map the ISO rejection codes with the corresponding reversal categories.

Configure ISO Rejection Codes as Reversal Reasons

Before you begin, ensure that the ISO codes appear in the Reversal Reason list on the Manage Reversal Reason to Category Mappings page. Define the ISO codes as lookups of the CKAJST_REASON lookup type.

To configure ISO rejection codes as reversal reasons:

  1. Navigate to Setup and Maintenance.

  2. Search for the Manage Receivables Lookups task.

  3. Click the Go to Task icon.

    The Manage Receivables Lookups page appears.

  4. Enter CKAJST_REASON in the Lookup Type box and click the Search button.

  5. Click the Add Row icon that appears on the Financials Generic Lookup Type: CKAJST_REASON table.

  6. Enter the ISO rejection code in the Lookup Code box.

  7. Enter the meaning and description for the rejection code in the Meaning and Description boxes.

  8. Click the Enable box so that the rejection code appears as the reversal reason on the Manage Reversal Reason to Category Mappings page.

  9. Repeat steps 5 through 8 to configure other ISO rejection codes.

  10. Click the Save and Close button when you complete configuring all the ISO rejection codes.

Map Rejection Codes to Reversal Categories

To map the ISO rejection codes to reversal categories:

  1. Navigate to Setup and Maintenance.

  2. Search for the Manage Receivables Reversal Reason to Category Mappings task.

  3. Click the Go to Task icon.

    The Manage Reversal Reason to Category Mappings page appears.

  4. Click the Add Row icon.

  5. Select the ISO rejection code from the Reversal Reason list.

  6. Select the category from the Reversal Category list.

  7. Click the Enabled box to enable the mapping between the reversal reason and reversal category.

  8. Enter the Payment Standard identifier of the established standard associated with the reversal reason.

  9. Repeat steps 4 to 8 to map other ISO rejection codes.

  10. Click the Save and Close button when you complete mapping all the ISO rejection codes.