Automatic Creation of Refund/Write Off (C1-RFWO2)

The Automatic Creation of Refund/Write Off (C1-RFWO2) batch is used to check whether there are any automatic refund/write off instructions in the Valid, Pending Completion, or Error status. If there is an automatic refund/write off instruction in the Valid or Error status and if the refund/write off request creation date in the automatic refund/write off instruction is earlier than or equal to the batch business date, the system verifies the account balance. Note that the automatic refund/write off instruction in the Error status are considered only when the Select records in Error (Y/ N) parameter in the batch is set to Y. If the current account balance does not match the account balance retrieved in the C1-RFWO1 batch, the system cancels the automatic refund/write off instruction. The status of the automatic refund/write off instruction is changed to Canceled and the automatic refund/write off instruction reason is set to the reason code which is specified in the Instruction Cancel Reason on Account Balance Change attribute of the automatic refund/write off field mapping.

If the current account balance matches the account balance retrieved in the C1-RFWO1 batch, the system creates the refund/write off request using the refund/write off request type (which is specified in the automatic refund/write off field mapping). While creating the refund/write off request, the adjustment level is set to Account. If the approval process is not configured on the refund/write off request type, the refund/write off request is created and processed immediately. On processing a refund/write off request, the system does the following:

  • Creates transfer adjustments against the unmatched financial transactions of the account on the netting contract

  • Creates one refund/write off adjustment against the netting contract

  • Changes the status of the refund/write off request to Processed

  • Changes the status of the automatic refund/write off instruction to Completed

If the approval process is configured on the refund/write off request type, the refund/write off request is created in the Approval in Progress status. The status of the automatic refund/write off instruction is then changed to Pending Completion.

Note: An approver can approve or reject the refund/write off request from the user interface. If the approver approves the refund/write off request, the system creates transfer adjustments against the unmatched financial transactions of the account on the netting contract and creates one refund/write off adjustment against the netting contract. Finally, the status of the refund/write off request is changed to Processed. However, if the approver rejects the refund/write off request, the system sets the automatic refund/write off instruction reason to the reason code which is specified in the Instruction Cancel Reason on Rejecting Request attribute of the automatic refund/write off field mapping.

In addition, if the refund process is on hold for the account, the refund request is created in the Hold status. The status of the automatic refund instruction is then changed to Pending Completion.

If an error occurs while creating a refund/write off request, the system does the following:

  • Changes the status of the automatic refund/write off instruction to Error

  • Sets the automatic refund/write off instruction reason to the reason code which is specified in the Error Code on Processing Refund/Write Off Request attribute of the automatic refund/write off field mapping.

  • Creates a To Do using the C1-ATRFWO To Do type for the automatic refund/write off instruction

If there is an automatic refund/write off instruction in the Pending Completion status and if the refund/write off request creation date in the automatic refund/write off instruction is earlier than or equal to the batch business date, the system checks whether the status of the corresponding refund/write off request is Processed. If so, the system changes the status of the automatic refund/write off instruction to Completed.