Inbound Collections Reject/Return

Inbound Reject

An incoming collections transaction can be rejected by the debtor bank before settlement. This is possible on the below scenarios:

The debtor account is in invalid status / has insufficient fund.
Sanction check failed on debtor.
Invalid status of Debtor Mandate / no Debtor Mandate available.

In these cases, the incoming collection transaction moves in to appropriate queue & does not gets liquidated. If the exception could not be resolved, user need to cancel the transaction from the current queue and move it to Repair Queue. And from Repair Queue, the transaction needs to be rejected. On rejection, system triggers the following actions:

The transaction is rejected, pre-settlement. Transaction status & collection status is marked as Rejected.
No accounting entries are posted on the transaction level.
Pacs.002 message is generated & dispatched that contain the transaction details.

For the pre-settlement rejected transaction amount, debit Nostro & credit Clearing Suspense GL entry is posted, with DCLG event.

The pre-settlement R-Messages must follow the same processing option (either Single Transaction Processing or Batch Processing) as the original Collections.

Inbound Return

An incoming collections transaction can be returned by the debtor bank, post its settlement. The debtor bank initiates the same based on the debtor customer request or due to debtor bank internal reasons.

Return is initiated on or after the value date of the incoming collection transaction. Thus, the transaction is liquidated.

Select the original transaction reference number, via list of values, which needs to be returned. Fill the reject code, reject reason details. On save & authorize of this return action the following gets triggered:

The underlying parent transaction is marked as returned. The accounting entries in the transaction is reversed.
pacs.004 message is dispatched containing the transaction details.
File accounting is posted for pacs.004 entries as debit Nostro and credit Clearing Suspense GL, with DCLG event.

Note:

Return action is allowed only before return days stamped in the transaction.

On Homepage, specify PCDINRTN in the text box, and click next arrow.
Inbound Collections Reject/Return screen is displayed.

Figure 5-22 Inbound Collections Reject/Return

On Inbound Collections Reject/Return screen, specify the fields.

For more information about the fields, refer to field description below:

Table 5-7 Inbound Collections Reject/Return - Field Description

Field	Description
Return Reference	System displays the Return Reference of selected branch of the logged in user on clicking ‘New’ button.
Return Date	System displays the Return Reference of selected branch of the logged in user on clicking ‘New’ button. System displays the current date by default.
Return Status	Return Status is defaulted as Not Initiated.
Original Transaction Reference	Specify the Original Transaction Reference from the list of values.
End to End Identification	System displays the End to End transaction Identification.
Transaction Branch	Transaction Branch is defaulted based on the Original Transaction Reference selected.
Host Code	Host Code is defaulted based on the Original Transaction Reference selected.
Network Code	Network Code is defaulted based on the Original Transaction Reference selected.
RType	This indicates if the transaction is rejected/returned. RType gets updated based on the Reference number. The options are following: Reject Return

Parent topic: Collections Exception Transactions