Rescission Transaction to Void Account

A.2.30 Rescission Transaction to Void Account

You can void an account immediately after funding or even during the Servicing stage due to unforeseen circumstances by posting ACC_RESCISSION - RESCISSION ACCOUNT non-monetary transaction in Customer Service > Maintenance > Transaction Batch Information section.

The statuses for which the transaction is supported depends on the setup configuration which includes the access for REVERSE button in transaction history for ACTIVE transaction.

However, note that:

You can void accounts in PENDING status created as part of Account On-Boarding. For more information refer Pending Account Creation in Interface chapter of Servicing user guides.
You cannot void an account which is already in Void status.
Recession transaction cannot be posted on TRADED/VOID Accounts. If Master account has any accounts with these status, the system stops posting this transaction.
While posting the transaction on any Account hierarchy, system refers to the look-up code ACC_STATUS_CD (ACCOUNT STATUS CODES). Transaction posting can sometime be ignored or result in error based on the look-up subcode i.e. if lookup for PAIDOFF status is ERROR, and if the picked account in hierarchy is in PAIDOFF status, then system displays error as 'Invalid status for associated accounts (SYS-SYS-SYS-TNM-002184)'.
However, if data is not maintained in the look-up for status then system posts the transaction on that account with the other existing validations. For example if look-up does not have ACTIVE or CHARGEOFF status, system picks all the Accounts including ACTIVE/CHARGEOFF status and post Rescission transaction.

Table A-130 To rescission a customer linked account

Transaction	Parameters
ACC_RESCISSION (RESCISSION ACCOUNT)	TXN DATE Select the transaction date as the current system date from the adjoining calendar.
PROCESS MASTER ACCOUNT If selected as YES, then rescission transaction is automatically posted to corresponding Master account. If selected as No, then rescission transaction is automatically posted to current account and its Linked Account(s).
REASON CODE Select the Reason Code as one of the following from the drop-down list: TRADE GRADE STATUTORY RESCISSION LATE RESCISSION
COMMENTS Provide additional information as comments (if any).
PROCESS LINKED ACCOUNTS If selected as YES, then rescission transaction is automatically posted to current account and its Linked Account(s).
PROCESS MASTER ASSOCIATED ACCOUNTS If selected as YES, then rescission transaction is automatically posted to corresponding Master account and its associated account(s). However before posting, system considers the value defined for other parameters. See section, Processing with Combination of Transaction Parameters.
PROCESS ALL ACCOUNTS BASED ON THE SALES ORDER NUMBER If selected as YES, then rescission transaction is automatically posted to void all corresponding account(s) which are having the same Sales Order number as that of current account where this transaction is being posted. However before posting, system considers the value defined for other parameters. See section, Processing with Combination of Transaction Parameters.
PROCESS ALL ACCOUNTS BASED ON THE AGREEMENT NUMBER If selected as YES, then rescission transaction is automatically posted to void all corresponding account(s) which are having the same Agreement number as that of current account where this transaction is being posted. However, Reversal of the transaction is to be done at each individual account. Before posting, system considers the value defined for other parameters. See section, Processing with Combination of Transaction Parameters.

Transaction

Parameters

ACC_RESCISSION

(RESCISSION ACCOUNT)

TXN DATE

Select the transaction date as the current system date from the adjoining calendar.

PROCESS MASTER ACCOUNT

If selected as YES, then rescission transaction is automatically posted to corresponding Master account. If selected as No, then rescission transaction is automatically posted to current account and its Linked Account(s).

REASON CODE

Select the Reason Code as one of the following from the drop-down list:

TRADE
GRADE
STATUTORY RESCISSION
LATE RESCISSION

COMMENTS

Provide additional information as comments (if any).

PROCESS LINKED ACCOUNTS

If selected as YES, then rescission transaction is automatically posted to current account and its Linked Account(s).

PROCESS MASTER ASSOCIATED ACCOUNTS

If selected as YES, then rescission transaction is automatically posted to corresponding Master account and its associated account(s).

However before posting, system considers the value defined for other parameters. See section, Processing with Combination of Transaction Parameters.

PROCESS ALL ACCOUNTS BASED ON THE SALES ORDER NUMBER

If selected as YES, then rescission transaction is automatically posted to void all corresponding account(s) which are having the same Sales Order number as that of current account where this transaction is being posted.

However before posting, system considers the value defined for other parameters. See section, Processing with Combination of Transaction Parameters.

PROCESS ALL ACCOUNTS BASED ON THE AGREEMENT NUMBER

If selected as YES, then rescission transaction is automatically posted to void all corresponding account(s) which are having the same Agreement number as that of current account where this transaction is being posted. However, Reversal of the transaction is to be done at each individual account.

Before posting, system considers the value defined for other parameters. See section, Processing with Combination of Transaction Parameters.

This section consists of the following topic: