Automatic Transfers and Check Disbursements

Back Office Section Heading Automatic Transfers and Check Disbursements

This document provides technical guidance for configuring and managing Automatic Transfers and Check Disbursements within the FLEX system. This functionality streamlines recurring financial operations, enhancing efficiency for credit union users.

1. Accessing Automatic Transfer/Check Maintenance

To manage automatic transfers and check disbursements:

  • Navigate to the FLEX Main Menu.
  • Select Transfers.
  • Choose Auto Transfer / Check Maintenance.

This section provides two main panels:

  • Automatic Transfers (Top Panel): Displays automatic transfer records.
  • Automatic Check Disbursements (Bottom Panel): Displays automatic check disbursement records.

2. Managing Automatic Transfers

The top panel of the “Auto Transfer / Check Maintenance” screen is dedicated to automatic transfers.

2.1 Viewing and Searching Transfers

  • Enter or search for an account number to display all associated automatic transfer records.
  • The displayed records include both transfers from and to the selected account.

2.2 Adding or Editing an Automatic Transfer

To modify an existing transfer or create a new one:

  1. Select a Record: Highlight an existing record in the top panel.
  2. Edit/Add:
    • Click Edit to modify the highlighted record.
    • Click Add to create a new transfer record.

This action opens the “Edit Automatic Transfer” screen, which includes “General” and “Transaction History” tabs.

2.2.1 General Tab Fields

The “General” tab contains the following key fields and their descriptions:

  • Transfer Amount:
    • Enter the desired amount for the transfer.
    • Note: If “Use Loan Payment Amount” is set to “Yes,” leave this field blank; the scheduled loan payment will automatically populate.
  • Allow Partial Transfers:
    • Indicates whether a transfer will proceed with available funds if the total amount is not present.
    • Yes: Transfers all available funds but does not advance the next transfer date.
    • No: Only transfers if the total transfer amount is available.
    • Available: Transfers all available funds and advances the next transfer date.
  • Partial Amount: Displays any partial amount already transferred.
  • Sequence Number:
    • Controls the posting order when multiple transfer records are defined for the same account/suffix.
    • A lower sequence number indicates an earlier posting order.

2.2.2 Debit Account Specifications

These fields define the source of the funds for the transfer:

  • General Ledger Account: Check this box if funds are being transferred from a general ledger account.
  • Account/Suffix:
    • Specify the account number and suffix from which funds will be transferred.
    • If transferring from a general ledger account, the suffix field will be blank.
  • Name: Displays the name associated with the debit account.
  • Transfer Description:
    • Optional field for a description of the transfer.
    • If left blank, a default description will be used.
  • Override Available Funds:
    • No: Funds will not be transferred if it would cause the account balance to go below available funds.
    • Yes: Transfers all funds in the account, ignoring holds and pledges, but will not allow the account to go negative.
    • Par Value: Transfers down to the minimum par value required for the account, ignoring holds and pledges.
  • Reg D Transfer: Check this box if the transfer should be classified as a Regulation D transfer.
  • Overdraft Repayment Plan: Check this box if the transfer is part of an overdraft repayment plan for a share collection program.

2.2.3 Credit Account Specifications

These fields define the destination of the funds for the transfer:

  • General Ledger Account: Check this box if funds are being transferred to a general ledger account.
  • Account/Suffix:
    • Specify the account number and suffix to which funds will be transferred.
    • If transferring to a general ledger account, leave the suffix blank.
  • Name: Displays the name associated with the credit account.
  • Transfer Description:
    • Optional field for a description of the transfer.
    • If left blank, a default description will be used.
  • Use Loan Payment Amount:
    • Applicable if the selected credit suffix is a loan suffix.
    • Yes: The loan’s scheduled payment amount will be used as the transaction amount.
    • No: The amount specified in the “Transfer Amount” field will be used.
    • Last Statement Balance: Transfers the balance as of the last statement date.
    • Memo Interest Amount: Transfers the amount in the memo interest field.
    • Payoff Amount: Transfers the current day’s payoff amount.
  • Consider Loan Due Date:
    • Check this box if the transfer should consider the loan’s payment due date.
    • If the loan’s due date is paid ahead of the effective posting date, the transfer will not post.

2.2.4 Posting Parameters

These parameters control the timing and grouping of transfers:

  • Next Posting Date:
    • Displays the next scheduled posting date.
    • Leave blank if “Consider Loan Due Date” is checked.
  • Payment Frequency: Select the desired frequency for the transfer (e.g., Monthly, Weekly, Daily, One-Time Only).
  • Start Date: Enter the date when the transfer record becomes active.
  • Stop Date:
    • Enter an end date if the transfer is for a specific period.
    • If no stop date is entered, the transfer will continue indefinitely (unless a one-time frequency is used) until manually deleted.
  • Posting Group:
    • Four-character, alphanumeric fields defined by the credit union.
    • Used to group sets of transfer records for simultaneous posting.

2.2.5 Internet Banking (Member Maintainable)

These settings control member access to the transfer via internet banking:

  • Maintain: Member can view and modify the transfer through internet banking.
  • No Access: Member cannot view or maintain the transfer through internet banking.
  • View Only: Member can only view the transfer, but cannot modify it through internet banking.

2.2.6 Posting History

This section automatically updates with transfer posting information; no manual entry is required.

  • Last Post Date: Displays the last date the transfer was successfully posted.
  • Number of Times Posted: Displays the number of times the transfer has been posted.
  • Completion Code: Displays the status code for the last posting. Common codes include:
    • Posting Initialized
    • Posting Started
    • Posting Complete

2.3 Automatic Transfer Worksheet/Posting

  • Worksheet:
    • Clicking Worksheet generates a preview of all transfers scheduled to post based on the entered effective date.
    • Recommendation: Always run a worksheet before posting to verify due transfers.
  • Post:
    • After verifying the worksheet, click Post to execute all transfers due or past due for all accounts in the transfer program based on the effective date.
    • Important Note: This option posts ALL transfers, not just those for the currently selected account.

3. Managing Automatic Check Disbursements

The bottom panel of the “Auto Transfer / Check Maintenance” screen is dedicated to automatic check disbursements.

3.1 Viewing and Searching Disbursements

  • Enter or search for an account number to display all associated automatic check disbursement records.

3.2 Adding or Editing an Automatic Check Disbursement

To modify an existing disbursement or create a new one:

  1. Select a Record: Highlight an existing record in the bottom panel.
  2. Edit/Add:
    • Click Edit to modify the highlighted record.
    • Click Add to create a new disbursement record.

This action opens the “Add Automatic Check Distribution” screen.

3.2.1 Debit Account

These fields define the source of funds for the check disbursement:

  • General Ledger Account: Check this box if funds are from a general ledger account.
  • Account/Suffix: Enter the account number and suffix from which funds will be disbursed.
  • Sequence Number: Controls the posting order when multiple check disbursement records are defined for the same account/suffix.

3.2.2 Check Details

These fields define the specifics of the check to be disbursed:

  • Check Payee Account:
    • If the check is payable to a member, enter the member’s account number here.
    • The “Pay To” fields will automatically populate.
  • Description One: A detailed description that will be saved in history files.
  • Description Two: Can be used for comments displayed on the screen.
  • Amount: Enter the dollar amount of the check.
  • Pay to the Order Of:
    • Click in these fields to manually enter check payee information if it differs from the “Check Payee Account.”

3.2.3 Codes

These codes influence the behavior of the check disbursement:

  • Payment Frequency: Select the desired frequency for posting (e.g., Monthly, Weekly, Daily, One-Time Only).
  • Allow Partial Check:
    • Select “Yes” or “No” to indicate if a partial check will be allowed if the full amount is not available.
    • Caution: Allowing partial checks may result in numerous low-dollar checks.
  • Reg D Transfer: Check this box if the disbursement should be considered a Regulation D transaction.
  • Override Available Funds:
    • Yes: Transfers all funds in the account, ignoring holds and pledges, but will not allow the account to go negative.
    • No: Funds will not be disbursed if it would cause the account balance to go below available funds.

3.2.4 Dates

These fields control the timing of the check disbursement:

  • Next Run Date: Indicates the next scheduled date for the disbursement to post.
  • Last Run Date: Indicates the last date the disbursement successfully posted. FLEX automatically updates this field upon posting.
  • Start Date: Enter the date when the disbursement record becomes active.
  • Stop Date:
    • Enter an end date if the disbursement is for a specific period.
    • If no stop date is entered, the disbursement will continue indefinitely (unless a one-time frequency is used) until manually deleted.

4. System Control Parameters (CT1680A)

The following parameters, found in the CT1680A screen, influence the behavior of automatic transfers and disbursements:

  • # Of Times To Transfer:
    • If funds are not available for a transfer, a limit can be placed on the number of times an automatic transfer may attempt to take place (up to 9 times).
    • If this option is set to 0, it will default to 6 attempts.