Return Processing

Return processing generates a Return Reference and the status of Return transaction is tracked during the processing. Both Activation date and Value Date for Return transaction is the processing date.

Settlement date of the Return transaction is the processing date, provided the original transaction value date is not in future. If the original transaction value date is in future, the Return Settlement Date is same as original transaction Value Date.

Auto-Returns / manual returns from Exception Queues follow the below processing steps:

Sanction Check
Accounting
Transaction Status Update
Information reporting/Notification XML generation
Generation of pacs.004

Sanction Check

If sanction check is applicable for the Network and Source and for the customer, system checks whether sanctions Retry Days maintained in Host Parameters (Function ID PMDHSTPR), is over after the Sanctions screening is done for the original transaction.

If no sanction screening is done for the original transaction or if retry days are over, the Return transaction sent for sanction screening.

Depending on the sanctions response status the following action will be taken

Accepted/ Rejected: If the response is received as Accepted/Reject on the same day, the Return transaction sanctions status is updated accordingly and the processing continue with the next step i.e. accounting.

If the response is received on a later date, the return transaction processing date is updated as current branch date if it is a branch and network working day. If current branch date is a branch or network holiday, the processing date is moved to the next possible working day for Branch and Network.

Note:

Return Days are not re-validated even if processing date is moved ahead as the delay is due to Sanctions screening.

Seized: System checks whether seizure accounting is applicable for the transaction. If applicable, the following accounting entries is passed.

Event	Dr/Cr	Account	Account Type	Amount Tag
YRCZ	Dr	Clearing Suspense	GL	Return Amt
YRCZ	Cr	Seizure GL	GL	Return Amt

Both original transaction status and Return transaction status are updated as 'Seized'. No further processing or messaging is applicable for Seized transactions.

Return Accounting

The following accounting is passed to reverse the debit accounting which is passed
upfront during the original receipt transaction processing:

Event	Dr/Cr	Account	Account Type	Amount Tag
YRCR	Dr	Clearing Suspense	GL	Return Amt
YRCR	Cr	Network Clearing GL	GL	Return Amt

Note:

No pricing is considered for Return transaction processing. The return amount will be same as the Original transfer amount.

Debit and Credit Value Date of the return will be same as the processing date.

Transaction Status Update

On completion of the Return accounting, original transaction status is updated as 'Returned' and the return transaction status as 'Success'.

Information Reporting/Notification XML generation

System will generate Information Reporting/Notification XML generation in the existing
generic formats on completion of the Return transaction processing.

Generation of pacs.004 Message

On reaching the next dispatch cycle, system will generate pacs.004 of all pending Return for
dispatch.

For Dispatch accounting, Accounting Code will be fetched from the R-transaction Preferences in ACH Credit Receipts Preferences screen (Function ID PYDINPRF).

Dispatch accounting will pass the below accounting entries ,grouping the transactions having same transaction branch and value date:

Event	Dr/Cr	Account	Account Type	Amount Tag
YRDS	Dr	Network Clearing GL	GL	RTN_STTL_AMT
YRDS	Cr	Nostro Account	Account	RTN_STTL_AMT

The original transaction details populated in pacs.004 will have the transaction details as received in pacs.008 without considering any enrichment done by the system like account/bank redirection, special character replacement or any generic replacement/repair done for the transaction. For pacs.004 message mapping, please refer to Appendix.

Parent topic: Processing of Auto/Manual Returns