ACH Processing

This document provides comprehensive instructions for users of the FLEX system on how to process Automated Clearing House (ACH) transactions, manage exceptions, handle returns, and process hand-entered items.

1. Overview of ACH Processing

ACH Processing in the FLEX system integrates with Share Draft Processing and Card Processing, providing a unified interface for all three. The programs and functionalities are consistent across these options.

1.1 Accessing ACH Processing

  • Location: ACH Processing is located under ACH/ACH Origination in the FLEX Main Menu.
    • Menu Path:
      • ACH
        • ACH Origination
          • ACH Processing

1.2 Key Areas within ACH/ACH Origination

The ACH/ACH Origination menu provides access to various related functions:

  • ACH Configuration
  • Reports
  • ACH Companies & Accounts
  • ACH Groups & Distributions
  • ACH Processing
  • Delete Companies & Accounts
  • Delete Inactive Distributions
  • Maintain ACH Returns/Corrections
  • Maintain Return Codes & Reasons
  • Pending ACH Transaction Inquiry
  • Restore Previous Returns/NOCs

1.3 Screen Modes and Processing Modes

The ACH Processing screen utilizes various modes to manage different aspects of ACH operations:

  • Screen Mode: Typically set to “ACH Processing”.
  • Processing Mode: Selectable from a dropdown, with common modes including:
    • Exceptions
    • Returns
    • Hand Entered

2. Initiating ACH Transmission (Receiving Files)

Before processing, the ACH file must be retrieved from the processor and placed in the designated folder on the I:drive.

2.1 Steps to Initiate Transmission

  1. Navigate to the ACH Processing screen.
  2. Click the Transmit button. This will open the “Initiate ACH Transmission” dialog.

2.2 Initiate ACH Transmission Dialog Fields

  • Transmission Type:
    • ACH Processor (Case): Select the applicable ACH processor (e.g., A – FLEX ACH).
    • Transmission: Select “Receive ACH Transactions”.
  • Transmission Options:
    • Post File:
      • Don’t Post: Used to verify totals before actual posting.
      • Debits and Credits: Posts both debits and credits.
      • Credits Only: Posts only credits.
      • Debits Only: Posts only debits.
    • Settlement Date: Defaults to the current date; can be changed to a past or future date.
    • Delay Receive Until: Designate a specific time for file transmission on the effective date. If left blank, transmission begins immediately upon clicking “Process”.
    • IDrive Folder: Specifies the folder on the I:drive where the file is saved (e.g., ACHRCV).
    • IDrive File: Specifies the name of the file within the folder (e.g., ACINA.TXT).
    • Clear ACIN: Check this box if transmission errors occurred and the file did not pass edits. Contact FLEX Support for assistance in such cases.
    • Post Today and Prior Settlement Dates Only: Check to post only transactions with the current date or prior settlement dates.
    • Post ALL Including Future Settlement Dates: Check to post all transactions, including future-dated (warehoused) items.

2.3 Processing the File

  • Click Process to receive and/or post the file.
  • If exceptions occur, they will display on the screen, and an exception report will be generated.

3. Posting ACH Transmission

This section applies if the initial transmission process did not include posting options. It allows for posting the recently received file. For credit unions that warehouse items, this will post items with the selected effective date.

3.1 Steps to Post ACH

  1. Navigate to the ACH Processing screen.
  2. Click the Post button. This will open the “Post ACH” dialog.

3.2 Post ACH Dialog Fields

  • Settlement Date: Defaults to the current date; can be changed to a past or future date.
  • Post File:
    • Don’t Post: Used to verify totals before actual posting.
    • Debits and Credits: Posts both debits and credits.
    • Credits Only: Posts only credits.
    • Debits Only: Posts only debits.
  • Company:
    • All Companies: Posts for all companies.
    • Individual Company: Select a specific company from the dropdown to post only for that company.
  • Post Today and Prior Settlement Dates Only: Check to post only transactions with the current date or prior settlement dates.
  • Post ALL Including Future Settlement Dates: Check to post all transactions, including future-dated (warehoused) items.

3.3 Processing the Post

  • Click Process to receive and/or post the file.
  • If exceptions occur, they will display on the screen, and an exception report will be generated.

4. Managing Exceptions

An exception is an ACH item that cannot be posted due to reasons such as incorrect account numbers, insufficient funds, closed accounts, or stop payments. All exceptions must be edited to either post or be returned after the file has been received and posted.

4.1 Accessing Exceptions

  • Set the Processing Mode to Exceptions on the ACH Processing screen.

4.2 Handling Exceptions

  • Edit All: Click Edit All to access the detail of the first exception and then advance to subsequent exceptions.
  • Edit Individual Exception: Highlight a single exception and click Edit to handle it individually.

4.3 Exception Information Tab

The Exception Information tab provides detailed information about the exception:

  • Company Information:
    • Name: Company name on the ACH item.
    • Entry Class: Entry class code on the ACH item.
    • Entry Description: Entry description on the ACH item.
    • Group: Group code from the ACH Company record.
    • ID: Company ID on the ACH item.
  • Transaction Information:
    • Transaction Code: Description of the transaction based on the ACH file code.
    • ACH Account: ACH account number on the ACH item.
    • Account Name: Account name sent with the ACH file (may differ from member name).
    • Trace Number: Trace number on the ACH item.
    • Date: Effective date for the ACH item to be posted.
    • Individual ID: Individual ID on the ACH item.
    • Amount: Transaction amount.
    • Charge Fee: Check box to apply a fee for handling the ACH item.
  • Member Information:
    • Branch: Branch code associated with the member account.
    • Member Account/Suffix: Member account/suffix for posting. Click Lock/Unlock to make changes.
    • Member Name: Member name as it appears in the FLEX system.
    • Balance: Current balance of the affected account/suffix.
    • Available: Calculated available balance of the affected account/suffix.
    • Courtesy Pay Amount: Amount of Courtesy Pay available, if applicable.
    • Reg E Opt-In: Indicates if the member has opted in for Reg E.
  • Overdraft Information:
    • Overdraft Code: Displays overdraft options set up for the associated account/suffix.
  • Other Shares:
    • NOC Correction: Check this box if a Notification of Change (NOC) needs to be sent to the ACH originator. Click Set Correction Information to add details.
  • Exception Reasons:
    • Highlight the exception reason and click Edit (or right-click and select Edit) to access override and return codes.

4.4 Exception Maintenance Dialog

This dialog is accessed by editing an exception reason.

  • Override Code:
    • To allow the ACH item to post despite the exception, select a valid Override Code.
  • ACH Transaction Return Code:
    • If the ACH Override Code is set to return the item, select the applicable Return Code.

4.5 Saving and Posting Exceptions

  • After handling or returning all exceptions, click Save/Finish.
  • It is crucial to click Post until ALL exceptions have been handled/returned. Handling exceptions in the file does not automatically post them to accounts.
  • Once all exceptions are handled and posted/returned, a return file can be built.

5. ACH Returns Processing

This section details how to manage items marked for return.

5.1 Accessing Returns

  • Select Returns in the Processing Mode dropdown on the ACH Processing screen. All items marked as returned will be displayed.

5.2 Managing Return Items

  • Edit/Edit All: Click Edit or Edit All to change information about the return or the return code.
  • Add: Click Add to manually input a return into the file.
  • Restore Previous: Restores the last returns file that was processed. Caution: Use with care to avoid sending multiple times.

5.3 ACH Return Maintenance Dialog

This dialog is used for managing individual return entries.

  • General Information:
    • Trace Number: Indicates the trace number of the ACH item.
    • Search: If the ACH Entry Record is still on the system, clicking Search will populate necessary fields for the return. Otherwise, information must be entered manually.
  • Company:
    • Company ID: ACH Company ID.
    • Company Name: ACH Company Name.
    • Description: ACH Description.
    • Entry Class: Three-letter code for the entry class.
    • Effective Date: Original effective date of the ACH item.
    • Discretionary Data: Optional information for specialized handling by originating DFIs.
    • Originating DFI: Originating Routing and Transit number (only for IAT items).
    • Settlement Date: Settlement date for the ACH item.
    • Descriptive Date: Descriptive date for the ACH item.
  • Transaction:
    • ACH Transaction Code: Transaction code from the ACH item. Select if manually adding.
    • ACH Account Number: ACH account number for the trace number entered.
    • Transaction Amount: Amount of the ACH transaction.
    • Individual ID: Individual ID of the ACH entry.
    • Member Name: Member name of the ACH entry.
    • Record Code: Record Code of the ACH entry (only for IAT items).
  • Returns/Corrections:
    • Return/Correction: Indicates if the item is being returned or returned for a Notice of Correction.
    • Return Code: If “Return” is selected, choose the appropriate return code.
    • Correction Code: If “Correction” is selected, double-click the Data column and change data according to the correction code used.

5.4 Initiating Returns Transmission

  • Once all return items are marked and ready, click Transmit to create a return file and send it to the I:drive.
  • The system will then open the “Initiate ACH Transmission” dialog with “Send ACH Returns” pre-selected.
  • Transmission Options:
    • Delay Until: Designate a delay time.
    • Build Return File: Check to build the return file.
    • Send Return File: Check to send the return file.
    • Clear unsent returns: Check to clear returns that haven’t been sent.
    • Overwrite existing returns on I: Check to overwrite existing return files on the I:drive.
  • Follow normal procedures to submit the file to the processor.

6. Posting Deleted Return Items (Hand Entered ACH)

If an item marked for return is later determined not to be returned, it can be deleted from Returns Processing and manually posted to the member account.

6.1 Deleting a Return Item

  1. From the Returns Processing screen, highlight the item.
  2. Click Delete.

6.2 Hand Entering and Posting the Item

  1. Change the Processing Mode from “Returns” to Hand Entered.
  2. Click Add to open the “Add/Edit Hand Entered ACH” dialog.
  3. Enter the information from the ACH edit detail report. Key fields include:
    • Company ID
    • Transaction Code
    • ACH Account
    • Name
    • Description
    • Amount
    • Date
  4. Click Save or Save & New to add more items.
  5. Once all hand-entered items are added, ensure the Processing Mode is “Hand Entered”.
  6. Click Transmit and Post to post the hand-entered items.