Daily Credit Line Exception Processing

Transcription

1 EXCEPTION PROCESSING CREDIT LINE ACH LOCKBOX Barb Soule, Senior Accountant, Natalie Rogers, Accounting Analyst, Becky McLeran, Lead Senior Accounting Analyst & Janice Turnipseed, Manager Accounting Operations May 14, 2014 Daily Credit Line Exception Processing Morning Process Branch 50 Exception Items View TG201 report in Mobius Search for draft copy by dollar amount in Mobius Verify green dollars on FM01 screen View TG15 screen to make sure draft is not a duplicate post View TG23 screen to verify a stop payment has not been placed on the draft Search for bank adjustments (encode errors) in Wells Fargo CEO 2 1

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3 Throughout the Day Cash Accounting team receives Association notifications throughout the day generated through Cherwell (Associations have until noon CST to decision their daily Credit Line rejects) Main reasons for Credit Line rejects: Over commitment, stop payment match return the item(s) Encode errors of loan numbers, loan mispostings manually post to another one of the client s loan Duplicate posts, encode errors of draft amounts, piggyback items these are handled as banking adjustments 5 Noon Process At 12:05 p.m. CST, the TG333 report is available in Mobius Cash Accounting team will match correspondence from the Associations to the TG333 report Any drafts that are being returned are entered into Wells Fargo CEO platform Deadline for returning drafts is 2:00 p.m. CST Drafts returned as NSF are being stamped by Wells Fargo as Refer to Maker Drafts returned as Account Closed or Stop Payment are being stamped accordingly Once all processing is complete, the Cash Accounting team manually overrides the R (reject code) on the TG62 screen with either an A to accept drafts on your behalf after the noon cutoff, or D to delete drafts left in reject status that needed further action 6 3

4 7 Deluxe Needs 2-3 weeks notice to implement any branch or template changes in their system Reminder AgriBank needs to be contacted for these changes, and AgriBank will coordinate directly with Deluxe Cash Accounting team maintains an Excel spreadsheet with all association branch location information for Deluxe In the next couple of months, AgriBank will be sending each association their branch information to review Needs a 13-digit account number to process any draft orders 3-digit association number plus the 10-digit loan number Deluxe also needs a secondary branch 2-digit association number plus the 3- digit branch number 8 4

5 Credit Line Process Improvement Initiative Solution #1 Positive Pay Indicator in Cornerstone Solution #2 Direct Br. 50 rejected items to associations Solution #3 Association Comment Field Solution #4 Automating TG deletes Solution #5 Associations accepting rejects to different loans 9 Positive Pay Indicator ISG would add a field to an existing screen in Cornerstone Eliminates sending all rejects to all associations on a daily basis AgriBank currently has no way of knowing who is a positive pay customer Future benefit when additional customers/associations implement positive pay 10 5

6 Direct Branch 50 Rejects to Associations Three digit association prefix on MICR line is already correct on 90% of rejected items so now will direct to association based on three digit prefix Associations have a greater knowledge of your customers Associations can decision these items within Cornerstone like they currently do other rejects 11 Association Comment Field ISG would add a field in Cornerstone so associations can add a comment if a draft was left in reject status Reduces back and forth communications between AgriBank and the associations 12 6

7 Automate TG Deletes Programming change - Drafts with a R (Reject code) after the Noon deadline will automatically change to D (Delete) and be deleted during the nightly processing Eliminates manual process done by AgriBank. 13 Association Accepts to Different Loan A field would be added in Cornerstone so associations can post rejected drafts to different loans Similar to posting of ACH Transactions Eliminates manual loan postings by AgriBank staff Reduces communication between AgriBank and the associations 14 7

8 ACH Disbursements DAUTH is an ACH debit file that is originated at AgriBank. This file runs through Wells Fargo and they are disbursements that debit the loans. They are originated through the On-Line Banker System or the FM09 screen in Cornerstone AUTHD is an ACH 3 rd party or On Us (Internal transaction to AgriBank) file that is processed through the Federal Reserve Bank and received at AgriBank ACHWD is also an ACH 3 rd party file but processes through Wells Fargo and is received at AgriBank AUTHS is an ACH 3 rd party file that processes through Wells Fargo and represents the electronic sight drafts CARDD - Credit Card Disbursements are also 3 rd party files that process as an ACH file through FDR for AgriBank CARDF - Credit Card Disbursements also are 3 rd party files that process as an ACH file through FDR for AgStar and the First Tennessee program 15 ACH Receipts PAUTH is an ACH credit file that is originated at AgriBank. This file runs through the Federal Reserve and they are receipts that credit the loans. They are originated through the On-Line Banker System or the FM09 screen in Cornerstone AUTHC is an ACH 3 rd party or On Us (Internal transaction to AgriBank) file that is processed through the Federal Reserve Bank and received at AgriBank. This can be current or prior day settlement dates ACHWC is also an ACH 3 rd party file but is processed at Wells Fargo and originate via on-line banker and received at AgriBank 16 8

9 ACH Cash Team Current Process Review TG403 - District Third Party ACH Exception Items Prior to Review for Branch 50 s Review TG404 ACH Resubmitted items for DDA branch returns Process TG404 Reversed items Reverse payment off of loan Reset billing bucket Calculate late charges if needed Notify association Review TG405 ACH Corrections for Branch 50 s Process FiServ, IPAY and Metavante bill pay rejects Monitor and respond to Cherwell Cash Accounting ACH questions 17 ACH Rejects - TG403 District Third Party ACH Exception Items Prior to Review MasterCard Transactions MasterCard rejects cannot be returned for any reason If the customer believes the item is fraud they can do the following Customer has to call Vantiv number is on the back of their card We will receive provisional credit from Vantiv while they investigate Rejected item needs to be posted to one of the customer s loans or to the service centers GL account. AgriBank will not house the potential fraud item on our books Closing of accounts Association is responsible for closing on Cornerstone and notifying wire transfer of closed card account Card can be moved to a different loan On US items Accept post to specified loan Return unable to return ON US items 18 9

10 ACH Returns New process effective 5/19/14 A team of AgriBank employees was formed in 2013 to review the daily ACH returns process New process effective 5/19/14 was sent to Associations 5/5/14 ACH returns charged/credited to xx88 or xx88. AgCountry Each association will reverse the payments off of their customers loans. 2 new Mobius reports TG404.1 sorted by Association TG404.2 sorted by Association and then by Branch Reversal returns are due to 2nd time NSF, account closed, unable to locate and a number of other reasons These items will need to be reversed off of your customers loan Resubmitted returns are generally 1st time NSF s and will be automatically resubmitted for a 2nd time Resubmitted items are for review purposes only and no entries are needed. The TG404.1 will be sorted by Association and TG404.2 will be sorted by Association and then by Branch Daily database extract - TG404_VIEW. Return_Type - this field will decipher between the resubmitted and reversed items 19 ACH Spread Tran Code 3309 and 3329 ACH Spread transaction codes for payments to loans. Currently NOT available for Association manual entries 3309 applies payment and then excess to Funds Held 3329 applies payment and then excess to Special Principal Project submitted - clear xx88 and not Do you have a need to use these transaction codes? FM70 ACH T/C for Payments 20 10

11 Lockbox Exception Processing Review of Web Exceptions Demo of actual items for the day Update on Lockbox PI Project request submitted to ISG List of discussion items sent to USBank Other PI updates 21 QUESTIONS? 22 11