8.1.2 Receipt Transaction Processing

Outbound payments follows the below listed processing steps:
  • Debit Accounting Handoff
  • Bank/Account Re-direction
  • Reject Validations
  • Applying Generic rules for Replacement
  • Process Exception Validations
  • Repair Validations
  • Overridable Validations
  • Applying Generic rules for Report
  • Authorization Limits check
  • Sanctions Check
  • Future Value Check
  • Pricing
  • FX Rate fetch
  • External Account Check
  • Credit Accounting Handoff
  • 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.

Event Dr/Cr Account Account Type Amount Tag
YIRC Dr Network Clearing GL GL Transfer Amt
YIRC Cr Clearing Suspense GL Transfer Amt
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:

  • Mandatory Field Validations
  • Allowed currency check
  • Validation whether FX is allowed for the customer
  • 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:

    Look-up Priority Host Code Source Code Customer Account
    1 Specific Specific Specific Specific
    2 Specific ALL Specific Specific
    3 Specific Specific Specific ALL
    4 Specific ALL Specific ALL
    5 Specific Specific ALL ALL
    6 Specific ALL ALL ALL

    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:

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

    Note:

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

  • 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:

  • Duplicate Check days is fetched from the Source code maintenance.
  • 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:

Event Dr/Cr Account Account Type Amount Tag
YICZ Dr Clearing Suspense GL Transfer Amt
YICZ Cr Clearing Suspense GL Transfer Amt

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.

Event Dr/Cr Account Account Type Amount Tag
YICZ Dr Clearing Suspense GL Transfer Amt
YICZ Cr Clearing Suspense GL Transfer Amt

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.

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