The reversal transaction is processed, validating the following external checks. In the reversal processing requests, the credit and debit account details are swapped from the underlying original transaction. Source code and source reference number are defaulted with respective original transaction.

The actions supported in each of these queues are detailed in Section 2.7.7 Queue Actions.

Process Exception Check - If the Original Credit or Debit account is closed, then the transaction is moved to into Process Exception Queue.

External Credit Approval - ECA is done for the original Credit account, as the fund is debited from this account on reversal.

External Account Check - EAC is done for the original Debit account, as the fund is credited to this account on reversal.

FX unwind Queue - In case External Exchange Rate is opted for the network and the original transaction contains a FX ref no and the original credit amount is greater than small FX limit, then on reversal, a request is logged into FX Unwind Queue. The transaction does not move into this queue.

All these queue movements happen with Reversal Transaction Reference number.

All other exception validations are skipped, including, Business Override, Transaction Repair, SSI, Authorization limit, Exchange Rate, External Pricing, Process cutoff, Network cutoff & Warehouse.

On successfully completing the external checks, the accounting entries are reversed. The charges posted on the parent transaction also gets reversed. All the entries that are posted in the underlying transactions are reposted with debit & credit account swapped in the DRLQ & CRLQ leg as below. Thus, the amount posted is positive number. The event code, transaction code, amount tags remains the same. The accounting entries are reversed with value date as of greatest of reversal date and original transaction date.

The reversal accounting entries are posted with reversal transaction number. Thus, the reversal view screen displays the reversal entries, while the parent transaction screen continues to display the original entries without any change.

If the reversal is executed on a later date, and if it is a cross currency internal transfer, still the same set of accounting entries are reversed. Thus, the exchange rate is not re-picked or reapplied.

If the external systems respond on a later date, the value date of reversal request is re-derived to current date and request is re-processed afresh. The customer preferences is not applied for reversal request.