6.2.9 Return Accounting

Return Accounting is the process of accounting for payments that are returned, rejected, or failed during the payment settlement process.

The types of returns are as follows:

Settled Returns

The following accounting is passed to reverse the accounting entries passed to Creditor Account as a result of Inbound FI to FI Customer Credit Transfer (pacs.008) and FI to FI Credit Transfer (pacs.009) transactions. The Credit or Debit liquidation entries passed in the original transactions is fetched and credit or debit legs are interchanged to pass the return Credit or Debit accounting entries.

Table 6-50 Accounting Entries

Event Dr/Cr Account Account Type Account Tag
SRDR Dr Customer Account Account Return Settlement Amount in account currency
SRDR Cr Intermediary GL GL Return Settlement Amount
SRCR Dr Intermediary GL GL Return Settlement Amount
SRCR Cr Nostro, Vostro Account / Network Account Account Return Settlement Amount

Note:

No pricing is considered for return transaction processing.

In the accounting handoff MIS details are populated same as the original transaction MIS details.

Unsettled Returns

The following accounting is passed on the original Inbound FI to FI Customer Credit Transfer (pacs.008) and FI to FI Credit Transfer (pacs.009) transactions and payment return (pacs.004) transaction.

Table 6-51 Original pacs.008/pacs.009 transaction

Event Dr/Cr Account Account Type Account Tag
SODR Dr Nostro Account Account Return Settlement Amount in account currency
SODR Cr Intermediary GL GL Return Settlement Amount
SOCR Dr Intermediary GL GL Return Settlement Amount
SOCR Cr Return GL Account Return Settlement Amount

Table 6-52 Payment Return pacs.004 transaction

Event Dr/Cr Account Account Type Account Tag
SRDR Dr Return GL GL Return Settlement Amount
SRDR Cr Interim GL GL Return Settlement Amount
SRCR Dr Interim GL GL Return Settlement Amount
SRCR Cr Nostro Account Account Return Settlement Amount

Note:

No pricing is considered for return transaction processing.
In the accounting handoff MIS details are populated same as the original transaction MIS details.

Parent topic: Outbound Return Processing