Check Writer EFT Reversal

The Check Writer EFT Reversal (CWEFTREV) page is used to manually request the reversal or reclamation of Check Writer EFT payment that has already been sent to the bank for processing, as well as to request the cancellation of a Check Writer EFT payment that was reversed successfully by the bank. About half the fields are editable while the other half infer or are updated through system processing. Most fields are self-evident with many discussed later in this section.

An EFT reclamation is a procedure used to recover funds when a death or legal incapacity terminates the rights of the recipient or a beneficiary of the recipient to receive certain payments such as pension, annuity, or other benefit payments. This is a special case of an EFT reversal where reclamation may not happen in the same year as when the CW payment was made, the cancellation of the CW payment may occur in a different year.

Note: If an EFT for CW payment was processed under the Warrant model and a Check Writer Warrant Reclassification (CWWR) has already reclassified the Warrants Payable into Cash, any subsequent cancellation of the CW payment will reverse the Warrants Payable but not the Cash. Therefore, additional manual accounting adjustments will be needed.

The major steps to add a record are as follows:

1. Manually insert records and set the Reversal Status to Request Reversal.

2. The Build XML File job in the CW EFT Reversal process select the record and builds corresponding ACH file to be sent to the bank. The Reversal Status of the record is set to Reversal Sent to the Bank.

3. Once the Reversal or Reclamation of the ACH transactions has been processed successfully by the bank, the Reversal Status can be updated to Reversal Confirmed manually. However, if the bank returns the reversal or reclamation, the CW EFT Return process updates the Reversal Status to Reversal Returned by the Bank.

4. The CW EFT Reversal process selects records with the Reversal Status of Reversal Confirmed. If unreconciled, the record exists on Check Reconciliation (CHREC) with the Status of Disbursed or Warranted, the system updates the Cancellation Status on the corresponding CW Payment record to Cancellation Requested and updates the Reversal Status on the CW EFT Reversal record to EFT Cancel Initiated. If reconciled, moved from Check Reconciliation to Paid Check,  then the system sets the Reversal Status to EFT Cancel Request Failed.

5. When a credit transaction (Rejected EFT) is received first and a debit transaction (Returned EFT Reversal) is received second for the same EFT Number, either via the same or different ACH return file, the system keeps the Reversal Status as unchanged (that is, Reversal sent to the Bank).

The following are special considerations when adding records page:

• The combination of Bank and EFT Number must match exactly one record on Check Reconciliation (CHREC) where the EFT Status is Disbursed or Warranted, and the Net EFT Amount must match the CHREC Amount. The CW Department and Check Writer File ID must match the Transaction Dept and Transaction ID respectively on CHREC.

• A reversal cannot be requested if the ACH File Generation Status on Check Writer Header (CWHDR) is not Generated or Re-generated.

• Requests to reverse EFT transactions with a net amount less than or equal to $0 are not allowed.

• Requests are only allowed for CW EFT transactions, where Transaction Code is CE.

• The combination of CW Department, Check Writer File ID, and EFT Number must exist on Check Writer Payment (CWPYMT) and the Cancellation Status on CW Payment must be N/A.

• Only unprocessed records, where the Reversal Status is Request Reversal, can be deleted.

• In the event a confirmed reversal cannot be processed due to exceptions, the Reversal Status will remain as Reversal Confirmed. If the exception cannot be resolved, the record may be deleted manually or the Reversal Status can be set to EFT Cancel Request Failed by temporarily downgrading the corresponding error(s).

• Reversal Status can be manually changed to Reversal Confirmed from Reversal. In this situation, an explanation can be entered in the Comment field.

• A reversal or reclamation must be initiated within the applicable timeframe specified by the EFT Reversal Request Lag Days (EFT_REV_RQST_LAG_DAYS) and EFT Reclamation Request Lag Days (EFT_RECLAIM_RQST_LAG_DAYS) on Application Parameters (APPCTRL).

• International payments cannot be reversed (Disbursement Format is IAT).