Enabling Automatic Funds Transfer Error Corrections

R12 ,Module : AR

 

During the payments capture process there might be errors encountered. Such errors could be anything like expired credit card or missing account number  etc. In such cases , the automatic receipts methods can enable the automatic correction of funds transfer errors.

i.e. Receivables can automatically correct errors encountered during the credit card authorization or payment capture stage, or during a bank account transfer.

Navigation : Receivables Superuser > Setup > Receipts > Receipt Classes > (Click on Funds Transfer Error Handling ) Button.

 

When the receipt information is processed,the third party credit card processor or the financial institution sends back error codes ( in case there are errors in the receipt). These error codes can be mapped with the actions that need to be take automatically. The below form is used to do the mapping.

 

Following are the actions that can be selected depending upon the category :

1. Change Instrument : A new Payment instrument can be selected.
2. Clear Payment Information : The payment information is removed from the transaction. It adds a default note on the transaction.
3. Retry : This option will remove the error code from the transaction . Once the error code is removed, the transaction becomes eligible for the next automatic receipt or remittance batch.
4. Reverse Receipt : Reverses the receipt, reopens the original transaction, and removes payment information from the transaction. Also enters a default note on the receipt and related transaction.

As mentioned above, there are different actions available for different category :

E.g. suppose an error code RL1 is sent by bank for a receipt, you can enter the Action Retry.  This option will remove the error code and make the transaction eligible for processing in next cycle. Number of days need to be entered as well. These represent how many days it should wait before attempting the subsequent action. The subsequent action could be reverse receipt. In this case.

In case the subsequent action is not specified, the transaction will be available on the correct Funds Transfer Errors page for manual correction.