Check 21 Processing – Batch Capture

New Employee Training Teller Training Guide Check 21 Processing - Batch Capture

This document provides technical guidance for utilizing the Check 21 Processing – Batch Capture feature within the FLEX system. This functionality enables credit unions to capture physical checks (drafts) in a batch mode from a designated workstation, post-transaction, and generate a cash letter for processing within FLEX.

1. Overview of Check 21 Processing – Batch Capture

  • Purpose: To facilitate the batch capture of checks and the creation of cash letters for efficient processing.
  • Workflow:
    • Checks are scanned at a single workstation.
    • Scanning occurs after the point of transaction.
    • A cash letter is created within FLEX.
  • Key Consideration: Scanning checks via Batch Capture does not link the check images to individual member transaction deposits.

2. Initial Setup and Configuration

  • Prerequisite: Before using Check 21 Batch Capture and Cash Letter features, specific setup and configuration steps are required within FLEX.
  • Action: Contact the Training Department for assistance with the necessary setup.

3. Accessing Check 21 Processing

  • Navigation Path: Users can access Check 21 Processing through the FLEX Main Menu:
    • Operations
      • Branch Administration
      • Check 21
      • Cash Letter Report
      • Check 21 Configuration
      • Check 21 Processing
      • Check 21 Watermark Configuration
      • RDC Rejection Inquiry

4. Batch Capture Tab Functionality

The Batch Capture tab is the primary interface for scanning and managing checks prior to posting to a cash letter.

  • Scanning Checks:
    • Checks can be scanned at any time of day.
    • Multiple batches can be posted and combined into a single cash letter.
    • Process: Insert checks into the scanner and click Scan Checks.
    • Data Captured: The scanner reads the check number, written and numeric amounts, and MICR line information.
    • Troubleshooting Scanner Issues:
      • Tension Adjustment: If issues arise, the scanner’s tension may need adjustment.
      • Mixed Check Sizes: Mixing check sizes can cause the scanner to pull multiple checks simultaneously.
  • Exceptions Handling:
    • Occurrence: Exceptions occur due to image quality, scanner/software’s inability to read amounts, invalid check numbers, or invalid MICR information.
    • Notification: A pop-up message displays the check image and reason(s) for the exception.
    • Resolution:
      • Verification: Users must verify all information along the MICR line and the check amount.
      • Manual Entry: It is often necessary to manually type missing or incorrect information.
    • Exception Processing Options:
      • Show All: Displays all available MICR fields (not always necessary).
      • Front/Back: Allows viewing of the front and/or back of the scanned check.
      • Rescan Check: Enables rescanning of a problematic check.
      • Delete: Removes the check. If the transaction is completed, the deleted image must be rescanned to be included in the batch or the transaction reversed.
      • Delete All: Deletes all checks scanned in the current batch.
  • Check Information Fields (during Exception Processing):
    • Aux On-Us: Recognized by Federal Reserve as the check number, common on business checks.
    • Routing & Transit: Indicates the Routing & Transit number.
    • Account (On-Us): Indicates the Account Number.
    • Check #: Indicates the check number.
  • On-Us Check Handling (Batch Capture):
    • An additional section displays for on-us checks.
    • By default, on-us checks scanned via Batch Capture are NOT included in the Cash Letter tab.
  • On-Us Check Information Fields:
    • Account: Indicates the On-Us account number.
    • Suffix: Indicates the On-Us suffix.
    • Suffix Avail: Amount currently available in the On-Us suffix.
    • CP (Courtesy Pay): Courtesy Pay amount available for the On-Us suffix.
    • OD (Overdraft): Overdraft amount available based on setup overdraft codes.
    • Total Avail: Total available amount from suffix, courtesy pay, and overdraft.
  • Post-Scanning Actions:
    • After scanning and exception correction, the Batch Capture Tab lists all scanned checks in order of scanning.
    • Double-click: Displays the check image and allows modifications.
    • Right-click: Allows users to modify, remove, or mark a highlighted check as cash/uncash.
  • Posting Scanned Checks:
    • Action: Checks must be posted to the Cash Letter after scanning.
    • Effect: Posting removes checks from the Batch Capture tab and updates the Cash Letter tab.
    • Note: The Batch Capture tab only shows checks currently being scanned, even if other checks were scanned earlier in the day.
  • Batch Capture Tab Buttons:
    • Ignore On Us: If checked, on-us checks will be included in the Cash Letter (procedure-dependent). If unchecked, they are excluded.
    • Scan Checks: Scans checks using the logged-in teller ID.
    • Post Checks: Posts all checks from the Batch Capture tab using the logged-in teller ID.
    • Change Teller: Allows posting checks using an alternate teller ID.
    • Scan Alt Teller: Allows scanning checks using an alternate teller ID.

5. Cash Letter Tab Functionality

The Cash Letter Tab displays all unprocessed checks by default and allows for cash letter management.

  • Default View: Automatically displays all unprocessed checks.
  • Cash Letter Tab Buttons:
    • Exclude Today: If checked, only unprocessed checks scanned and posted prior to the current date will display. Useful for processing previous day’s checks.
    • Build & Send: Builds and sends the cash letter based on selected filters. Recommendation: Balance all checks prior to building and sending.
    • My Teller: Filters checks scanned only by the current logged-in teller ID and branch.
    • My Branch: Filters checks scanned only by the current logged-in teller ID’s branch location.
    • Filter: Provides options to filter for additional items (e.g., scan date, batch ID, check #).
    • Note on Filters: If any filters are used, the built and sent cash letter will only include checks matching the filter criteria.
  • Balancing:
    • Recommendation: Perform balancing before building and sending a cash letter to ensure teller drawer totals match scanned check totals.
    • Balancing can also be done before posting batch-scanned checks to the cash letter.
    • Process: Click My Teller to get the total amount of checks received for the logged-in teller. This total should match “Net Checks” from Teller Balancing.
    • Outage Resolution: If an outage occurs, verify:
      • All scanned checks have been posted.
      • All on-us checks cleared through the on-us account (if applicable).
      • On-us checks are not included in the cash letter (if applicable).
    • Impact: All tellers balancing prior to building and sending affects general ledger totals.
  • Managing Checks in Cash Letter:
    • Checks can be edited, viewed, printed, or deleted from the cash letter prior to posting.
    • Important: If a check is deleted from the cash letter using batch capture, it must either be rescanned or reversed through Transaction Reversal.
  • Cash Letter Building and Sending:
    • A cash letter can be built multiple times per teller, per branch, or for the entire credit union, depending on preferences.
    • After selecting Build and Send, the system creates a file on the credit union server for uploading to the processor or for FLEX to process.

6. Cash Letter History Tab

The Cash Letter History tab provides a historical record of all sent cash letters.

  • Functionality:
    • Displays a historical record of every cash letter sent.
    • Allows obtaining a detailed record.
    • Enables resending of Cash Letter(s).
  • Detail View: Clicking Detail allows viewing, printing, or resending all checks included in the selected cash letter.
  • Resending Cash Letters:
    • Right-click on the selected cash letter and choose Resend.
    • A resent cash letter builds/sends immediately.
    • The existing processed date in the Cash Letter History tab changes to the current system date.
    • Caution: Exercise extreme caution when resending cash letters. Verify the record count and total of previously sent cash letters to avoid resending an incorrect one, which could lead to checks attempting to clear accounts a second time.
  • Error Handling:
    • This tab may display unprocessed cash letters or those that resulted in an error during the build and send process (shown in red without a processed date).
    • If the system does not remove an error cash letter by end-of-day, it can be resent by right-clicking and selecting Resend.

7. Check History Tab

The Check History Tab displays processed checks and allows for their management.

  • Default View: The tab is blank until the filter is used.
  • Filtering:
    • Click Filter to display filter options.
    • Choose filter options from the drop-down.
    • Click Add.
    • Click Run after all filter options are chosen to display checks meeting the criteria.
  • Managing Processed Checks:
    • Individual checks displayed in the results can be viewed, printed, or resubmitted for processing.
    • Highlight a check to view or print it.
    • Resubmitting Checks: Right-click a highlighted check and select:
      • Resubmit – No Change: Submits the original check image to the current cash letter for reprocessing.
      • Resubmit – New Image: Prompts for a new image to be scanned, then adds the check to the current cash letter for reprocessing.

8. On-Us Tab

This tab is used for managing on-us checks, particularly if credit union procedures require them to be sent in a cash letter.

  • Purpose: To create a separate cash letter for on-us checks if required by credit union procedure.
  • Combination: On-us checks can only be combined with other checks in a cash letter if they have not been processed.
  • Default View: Displays the current day’s unprocessed checks.
  • Filtering: Use the filter to find processed on-us cash letters and their processed dates.
  • Image and Balancing: Even if on-us checks are not sent in a cash letter, they will appear here for image purposes and balancing.
  • On-Us Tab Buttons:
    • Exclude Today: If checked, only unprocessed checks scanned and posted prior to the current date will display.
    • Build & Send: Builds and sends the cash letter based on selected filters. Recommendation: Balance all checks prior to building and sending.
    • My Teller: Filters checks scanned only by the current logged-in teller ID and branch.
    • My Branch: Filters checks scanned only by the current logged-in teller ID’s branch location.
    • Filter: Provides options to filter for additional items (e.g., scan date, batch ID, check #).
    • Note on Filters: If any filters are used, the built and sent cash letter will only include checks matching the filter criteria.

9. Build and Send Cash Letter Process

  • Filter Impact: The “My Teller,” “My Branch,” and “Filter” buttons directly affect which checks are included in the cash letter. The cash letter will be built based on the active filters.
    • Example: To send a cash letter for the current logged-in teller ID’s branch, click My Branch.
  • Verification: FLEX recommends verifying totals before clicking Build and Send.
  • Process:
    1. Click Build and Send.
    2. A summary pop-up will display verifying the Batch ID, Total Checks, and Amount.
    3. If correct, click Process.
    4. A confirmation message “Cash Letter Sent Successfully” will display.

10. Cash Letter File Transmission

  • FLEX as Processor:
    • Files are immediately sent to FLEX upon creation.
    • Client Services sends the processed cash letters. No further action is required.
  • Third-Party Processor:
    • If FLEX is not processing cash letters, the built file is placed on the IFS drive.
    • It is the credit union’s responsibility to upload the file(s) to their third-party processor.
    • Accessing IFS Drive: Click Home and type the credit union server’s IP Address in the search field (e.g., \\10.5.0.147).

11. Cash Letter Detail Report

  • Generation: A Cash Letter Detail report generates every time a cash letter is built/sent.
  • Content: This report provides a detailed breakdown of each check included in the cash letter, including:
    • Routing Number
    • Account Number
    • On-Us status
    • Check Number
    • Check Amount
    • Teller ID
    • Branch ID
    • Scanned Date
    • Processed Date
    • Check ID
  • Summary Information: The report also displays the Cash Letter ID, total checks, and total amount.