ACH New Company Held Credits

Transmissions Lessons ACH New Company Held Credits

The following outlines the process and configuration options for managing ACH credit entries for new companies within the FLEX system. It addresses scenarios where a change in an ACH Company ID might prevent distributions from posting and provides steps to ensure correct transaction processing.

1. Overview of the Issue

  • Problem: An ACH Company changing its Company ID can prevent associated ACH distributions from posting correctly.
  • Solution: A configurable option within FLEX allows the posting program to bypass credit transactions for new ACH Company IDs. This provides the credit union an opportunity to add a group code, ensuring distributions post accurately.

2. Configuration: Control Parameters

The primary configuration for managing new company held credits is located within the ACH Control Parameters.

  • Navigation Path:
    • FLEX Main Menu
    • ACHACH Configuration
    • Control Parameters
  • Key Setting: Post Credit Entries for New Companies
    • Default Value: Yes
      • Behavior: All credits will post, regardless of whether they are considered a new company or lack a group code.
    • Recommended Change: No
      • Behavior: The system will bypass posting credits for new companies. This allows the credit union to edit the company record and add a group code before transactions post.
      • Note: If a group code is not added, the Post Credits flag may need to be manually removed on each company record to allow posting.

3. Reporting for Held Credits

When Post Credit Entries for New Companies is set to No, two new reports are generated to assist in managing held credits.

  • ACHNEWCO – AC4020S: ACH New Companies Detail
    • Purpose: Lists all new companies identified from the ACH Receipt Detail report.
    • Example Fields: Company Name, Receiving Point, Entry Class, Entry Description, Effective Date, Settlement Date, Originating DFI, Company ID, Batch Count, Debits, Credits, Net.
  • ACNWCOCR – AC4202M: New Company Held Credits Listing
    • Purpose: Lists all transactions currently being held until a group is entered or the company is flagged to post.
    • Example Fields: Company Name, Company ID, Entry Description, Reference Date, Settlement Date, ACH Account, Name, Entry Amount, CU Account, Exception Code.

4. Managing Held Credits: ACH Companies & Accounts

Once new company credits are held, they must be managed within the ACH Companies & Accounts section to allow them to post.

  • Navigation Path:
    • FLEX Main Menu
    • ACH
    • ACH Configuration
    • ACH Companies & Accounts
  • Steps to Add a Distribution Group:
    • Locate Record: Highlight the relevant company record that appeared on either the ACH New Companies Detail or New Company Held Credits Listing report.
    • Edit Record: Click Edit.
    • Enter Group: In the Group field, enter a 4-digit alphanumeric group.
      • This can be a pre-existing group or a new group.
      • If a new group is added, it must be configured in Groups and Distributions.
  • Enable Posting: Ensure the Post Credit Entries field is checked.
      • Important: This is a one-time configuration and will no longer be visible once the record is saved.
      • Visibility Note: Post Credit Entries may also be added as a visible column in the ACH Companies & Accounts screen for quick reference.

5. ACH Processing and Inquiries

  • Warning in ACH Processing: If a new company has not been configured to post new credits, a warning will display in ACH Processing.
  • Viewing Held Transactions: These warnings and the associated held transactions are viewable in Pending ACH Transaction Inquiry.
  • Exception Handling: Held transactions will not display as exceptions in the standard exception reports.
  • ACH Receipt Summary: The ACH Receipt Summary will continue to show new companies, even if their credits are held.