Disbursement Acknowledgment for ISO 20022 Payments

Retrieve and process disbursement acknowledgment files from banks for credit transfers in accordance with the ISO 20022 standards.

You can void the payments that were rejected by the bank and act on the associated invoices.

The bank generates up to 3 payment acknowledgment files during the clearing process.

First Level (L0) Acknowledgment: This is generated by the bank within a few minutes of receiving the payment file. It only provides file level acknowledgment to confirm that the file schema or syntax is correct.
Second Level (L1) Acknowledgment: This is generated by the bank within a few hours of receiving the payment file. It shows the status at both the file and payment levels.
Third Level (L2) Acknowledgment: Generated in 2-3 days with a list of payment rejections during the clearing process. It's always generated at the payment level, and an acknowledgment file can include rejections from multiple payment files.

Before you can use the acknowledgment flow, you must complete the following setups at the payment system account level.

Disbursement Acknowledgment Automatic Retrieval Time Interval Minutes
Disbursement Acknowledgment Automatic Voiding Option
Disbursement Acknowledgment Format
Disbursement Acknowledgment Transmission Configuration
Disbursement Acknowledgment Voiding Invoice Action
Email Disbursement Acknowledgment Details
Payment File Register Format

Acknowledgment Flow

The status of the payment file changes to Completed and pending acknowledgment when the payment file is processed. Once the acknowledgment file is processed, the status of payment file changes to Acknowledged or Rejected, depending on whether the bank accepts all, some, or none of the payments. At the same time, the payment status changes to Acknowledged or Rejected, depending on whether the bank accepts or rejects the payment.

If the bank rejects the payments, you can configure the application to take these actions:

Automatically void the payments rejected by the bank.
Automatically put a hold on or cancel the invoice when the payment is voided due to bank rejections.
Note: If you select no action, the invoice has a status of unpaid.

After the processing of the acknowledgment file is completed, the Payment File Register report is automatically generated. It includes payment file and payment level acknowledgment details, and invoice actions.

You can retrieve and process acknowledgment files using any of the following methods:

Automatic: The application automatically retrieves and processes acknowledgment based on the time internal set in the payment system account settings.
Payment file: Open the payment file from the Manage Payment Files page, and click Actions > Retrieve Acknowledgment.
Manage Payment Files page: On the Manage Payment Files page, select the payment file row and click Actions > Retrieve Acknowledgment.
Scheduled process: On the Payments landing page, open the Tasks panel tab and click Retrieve Disbursement Acknowledgment to submit the process. You can optionally set the payment system, the payment system account, the payment process profile, and the payment file.

Here's a summary of statuses of the payment file and payment after each step of acknowledgment processing.

Acknowledgment	Payment file status	Payment Status (IBY_PAYMENTS_ALL)	Payment Status (AP_CHECSK_ALL)
L0 – File accepted	Acknowledged	Acknowledged	Negotiable
L0 – Rejected	Rejected	Rejected/Voided	Negotiable/Voided
L1 – All payments accepted	Acknowledged	Acknowledged	Negotiable
L1 – Some payments rejected	Acknowledged	Rejected/Voided, for the rejected payments	Negotiable/Voided
L2 – Some payments rejected	Acknowledged	Rejected/Voided, for the rejected payments	Negotiable/Voided

Forcing an Acknowledgment

If necessary, you can force acknowledge a payment file. This might be required when a bank doesn't support acknowledgments, or when there are issues with the bank's acknowledgment file. You can force acknowledge the payment file from the Payment File or from the Manage Payment Files page by selecting Force Acknowledge from the Actions menu. This acknowledges the payment file and sets the status to Acknowledged.

Manual Holds for Acknowledgment

Customers can manually apply or release these predefined holds.

Hold Code	Meaning	Description
ORA_AP_BANK_ACK_RJCT	Acknowledgment rejection	Payment rejections reported by bank in the acknowledgment file.
ORA_AP_BANK_ACK_RJCT_REL	Bank rejection remedied	Addressed rejection reason reported in the bank acknowledgment file.