Trade Reversal/Rescission and Charge-off of Account

G.3.4 Trade Reversal/Rescission and Charge-off of Account

After processing a Trade transaction, if there are unforeseen circumstances due to which the trade has to be reversed or cancelled, you can do so by posting the following non-monetary transactions in Customer Service > Maintenance > Transaction Batch Information section.

TRADE REVERSAL - This transaction can be posted on existing (old) account to reverse the Equity Out transfer. This can be posted when the Trade Type is either Upgrade (one-to-one) or Split (one-to-many). For more information, refer to Trade Reversal section.

RESCISSION ACCOUNT - This transaction can be posted to void the new account created as part of the Trade transaction. This can be posted when the Trade Type is either Upgrade (one-to-one) or Combine (many-to-one). When Rescission Transaction is posted on the account, system changes the status of asset to 'Inactive'. For more information, refer to Rescission Transaction to Void Account section.

On processing Trade Reversal/Rescission transaction, the following changes are posted on respective accounts:

Table G-3 Trade Reversal/Rescission transaction

Existing (old) / Source Account	New / Target Account
Reverses TRADE transaction and updates Equity Out value to zero. If Trade transaction is posted on Linked and Master Account, the same is reversed and account status is reverted to earlier status. Removes Equity Out value updated in Account Details > Traded Details screen. ACH processing will be restarted. Metro II reporting is restarted. Future billing is restarted on next billing batch job run. Adjust minus transaction is reverted. Comment is posted in the format ACCOUNT TRADE REVERSED DUE TO RESCISSION ON <DATE> FOR THE <REASON> AND <COMMENT>.	Reverses all active transaction on the multiple new Accounts created from Split or One-to-One trade and Void the new Accounts. RESCISSION non-monetary transaction is posted to convert account to VOID status. Comment is posted on multiple new Accounts in the format RESCINDED ON <DATE> FOR THE <REASON> AND <COMMENT>.

Existing (old) / Source Account

New / Target Account

Reverses TRADE transaction and updates Equity Out value to zero.
If Trade transaction is posted on Linked and Master Account, the same is reversed and account status is reverted to earlier status.
Removes Equity Out value updated in Account Details > Traded Details screen.
ACH processing will be restarted.
Metro II reporting is restarted.
Future billing is restarted on next billing batch job run.
Adjust minus transaction is reverted.
Comment is posted in the format ACCOUNT TRADE REVERSED DUE TO RESCISSION ON <DATE> FOR THE <REASON> AND <COMMENT>.

Reverses all active transaction on the multiple new Accounts created from Split or One-to-One trade and Void the new Accounts.
RESCISSION non-monetary transaction is posted to convert account to VOID status.
Comment is posted on multiple new Accounts in the format RESCINDED ON <DATE> FOR THE <REASON> AND <COMMENT>.

Note:

During Trade Reversal transaction, if the target account is in 'Pending' status system performs the Trade Reversal on Pending Accounts as indicated below:

If the target account which is in ‘Pending’ status is voided by posting “Account Rescission” transaction, then Trade gets reversed.
On posting 'Trade Reversal' transaction of old traded account then, new account (earlier in pending status) will get voided, and Trade gets reversed.
When Trade is reversed, status of collateral on voided account will be 'In Active' status.

Charge off

If the new account created is not performing well or due to any other reason an account is to be cancelled in OFSLL, you can post CHARGED OFF monetary transaction. For more information, refer to Account Charge Off section.