ACH Groups and Distributions

This document provides a comprehensive guide to managing ACH Groups and Distributions within the FLEX system. ACH Groups & Distributions functionality enables credit unions to define new distribution groups, modify existing group defaults, and subsequently add individual distributions to these groups.

Accessing ACH Groups & Distributions

To access the ACH Groups & Distributions screen:

  • Navigate through the main menu: ACH/ACH Origination > ACH > ACH Groups & Distributions.

Screen Overview

The ACH Groups & Distributions screen is divided into two main panels:

  • Top Panel (Groups): Displays a list of all configured ACH Groups.
  • Bottom Panel (Distributions): Shows distributions currently associated with the ACH Group highlighted in the top panel.

From this screen, you can perform the following actions on groups:

  • Add new groups.
  • Edit existing groups.
  • Copy existing groups.

Managing ACH Groups

Adding or Editing an ACH Group

To add a new ACH Group or modify an existing one, use the “Add” or “Edit” buttons respectively. The following fields are available:

  • Group Name:
    • Enter a unique group code.
    • Requirement: A group code must be assigned before distributions can be added.
    • Requirement: The group code must also be added to the relevant ACH Company record for distributions to post successfully.
  • Receipt:
    • Check this box to automatically generate a receipt for ACH distributions associated with this group.
    • Note: This setting can be overridden at the individual member level.
  • Enable Multiplier:
    • Check this box to activate the multiplier feature for distributions configured under this group code.
    • Functionality: If enabled, the system will trigger multiple distributions if more than one credit is received for a single account on the same day, for any company utilizing this group code.
  • Override Received Amount:
    • This option is available only if “Enable Multiplier” is checked.
    • Check this box to allow multiple distributions to be made in full, even if the total amount received is insufficient to cover all distributions.
  • Allow Early Payroll Posting:
    • Check this box to permit early credit posting for distributions within this group.

Managing Distributions

The “Distributions” panel displays all distributions linked to the selected ACH Group.

Adding or Editing an ACH Distribution Record

To add a new distribution or edit an existing one, select a Group record from the top panel and click “Distributions.” The “Add Distribution” or “Edit Distribution” screen will appear with the following fields:

Transaction Details

  • Distribution Type:
    • Determines the destination of the ACH Distribution.
    • Account: Distribution will go to another account.
    • Check: System will ignore any account number and prompt for payee information.
  • To Account/Suffix:
    • Enter the account number and suffix where the distribution will be directed.
    • Default: The system defaults to the same account number from which the distribution originates, but this can be changed to any other valid account.
  • Amount:
    • Enter the specific dollar amount for the distribution record.
  • Description:
    • Display or enter a description that will appear on the member’s statement and account history.
  • Priority:
    • Indicates the sequence in which the distribution will be processed when posted.
    • A lower priority number (e.g., 1) will post before a higher priority number (e.g., 3).
    • Recommendation: For overflow amounts, use priority 9.
  • Payment Frequency:
    • Sets the frequency for the distribution to be processed.
    • No Frequency Selected: Distribution will post every time an ACH file is posted.
    • Frequency Selected: Distribution will only be taken when due, based on the selected frequency.

Suffix Options

  • Grace Days:
    • This option is available when transferring to a loan account and “Use Due Date” is selected.
    • Use this parameter to specify the number of days prior to the loan due date that a payment can be made.
    • Example: If an ACH payroll typically arrives on the 2nd of the month, but due to a weekend, it needs to be posted on the 1st, a distribution to a loan due on the 2nd will not be made on the 1st unless “Grace Days” is set to at least 1.
  • Allow Partial Payment:
    • Select the desired partial payment option:
      • Y (Yes): Allows partial distribution. The distribution will only be made if the amount received is sufficient to cover the total scheduled distribution.
      • N (No): Does not allow partial distribution. The distribution will not be made if the amount received is insufficient to cover the total scheduled distribution.
      • O (Override available): Allows the entire scheduled distribution to post, even if it could potentially result in a negative account balance.
      • P (Override available to PAR value): Posts a partial payment, ignoring any holds on the account.
      • R (Allow partial but distribute no more than received amount): Allows a partial distribution, but limits the distributed amount to the received amount if the received amount is less than the scheduled distribution.
  • Use Payment Amount:
    • Check this box if the ACH disbursement program should utilize the scheduled loan payment amount instead of the amount entered in the “Amount” field.
    • Caution: Any amount displayed in the “Amount” field will be ignored. If a member receives ACH payroll twice a month and the scheduled loan payment is monthly, the full payment will be posted each time payroll is received. Uncheck this box and manually enter the desired disbursement amount if this behavior is not desired.
  • Use Due Date:
    • If checked, the system will reference the payment due date in the loan record and only process the distribution if the loan payment is due. If the loan is paid ahead, the distribution will not post.
    • If unchecked, the distribution will post each time ACH is received, even if the loan is paid ahead.
    • Benefit: Using the due date instead of frequency for loan payments is beneficial when the credit union allows payments to be skipped.

IRA Options

  • IRA Code:
    • If the distribution will credit an IRA suffix, select the appropriate IRA reporting code from the drop-down list.

Dates

  • Next Run:
    • Displays the next scheduled date for the distribution to be processed.
  • Last Run:
    • Displays the date the distribution was last posted.

Stop Payment Options

  • Stop Payment:
    • Check this box to halt a distribution without deleting the distribution record.
    • Functionality: The “Stop Date” and “Restart Date” fields become active, allowing you to specify the period for which the distribution should be stopped.
  • Stop Date:
    • If “Stop Payment” is checked, use this date field to indicate when the stop payment should begin.
  • Restart Date:
    • If a stopped distribution needs to resume, enter the date when the distribution should begin posting again.