Automated Check Reconciliation Process

The Auto Check Reconciliation process compares client check records on Check Reconciliation table to records on Check Exception table (which contains both current day's bank file records in addition to any records that have failed prior reconciliation processing.)

If an exact match is found between Check Reconciliation table and Check Exception table, and the record on Check Reconciliation has a status of Disbursed or Warranted, then the Recently Reconciled flag is set to True (selected) to mark the record as reconciled and the Cleared date is populated. For the EFT records, system populates the Cleared date from the Disbursement transactions when the records are inserted. The Cleared date is calculated based on the Lag Days specified on the DISPA Lag Days field. The Cleared Date cannot be less than the Issue Date for all payment types when the Allow Cleared Date Before Issue Date (ALW_CLR_BEF_ISS) parameter is set to False on the Application Parameter table. The Cleared Date must be blank if the Status is Stopped or Undelivered.  For checks and warrants, the Cleared Date should not be greater than the System Date. If the Severity of the A8301 “Cleared Date cannot be after the System Date” error message on the Messages (MESG) table is set to Error, then the system does not allow the Cleared Date to be greater than the System Date. If the Severity of the A8301 error message is set to Warning or Information, then the error message is displayed, but the Cleared Date is allowed to be greater than the System Date.

In order to identify the records that were processed by the current batch run in order to produce the Check Exception Control Totals report, the Automated Check Reconciliation process updates the Recently Reconciled flag to True for the matched records on the Check Reconciliation table. When the records are moved to the Paid Checks table, the system includes the Recently Reconciled field’s value along with the other fields’ values.

Checks with a Status of Undelivered or Stopped will remain on Check Reconciliation record until the Status is changed back to Disbursed (or Warranted) for reconciling or further actions have been taken on the check such as cancelling or reclassifying it. After the Status has been changed, the check will be selected by the Check Reconciliation process and moved to the Paid Check page.

Changes can be made to various fields on the Check Reconciliation record via the Check Status Update page. If the Check Reconciliation Manual Update Tracking parameter on the Application Parameters table is set to Yes, then an audit record is automatically added to the Check/Deposit Manual Update Tracking table if a manual update is made to Check Reconciliation via the Check Status Update page.  

The Generate Warrant Reconciliation Transaction process automatically generates the Automated Warrant Reconciliation (AWR) transactions to reclassify the funds to cash for the warranted records (Status is Warranted on the Check Reconciliation table) that were reconciled (that is, Recently Reconciled flag is checked on the Check Reconciliation record) by the Check Reconciliation process.

In order to process AWR transactions under the Warrant model, the Status for the Check / EFT records on the Check Reconciliation table must be Warranted. If you configure the Status as Disbursed and use the Warrant model, the Generate Warrant Reconciliation Transaction process will not generate the AWR transactions.

The Automated Warrant Reconciliation (AWR) transaction is a clone of the WR transaction. The only difference is that the AWR can only be created by the Generate Warrant Reconciliation process. The Generate Warrant Reconciliation process generates an AWR transaction for each recently reconciled Warranted record on the CHREC table. This process is used to reclassify check payments that were made under the warrant accounting model to cash. The Reclassification Type on the AWR Transaction is set to Warrant Reconciliation by the system on validate/submit of the transaction. If the Recently Reconciled flag is checked and the Status is Warranted, on submit of the AWR transaction, the Status field on Check Reconciliation is updated to Paid. If the Recently Reconciled flag is not checked, on submit, the Status field on the Check Reconciliation record is updated to Disbursed.

The Automated Warrant Reconciliation (AWR) transactions will not be created when the Claim Schedule feature is enabled on System Option (SOPT) (that is, External Disbursement Option = Disbursements & Claims). Instead, CH transactions can be used to clear warrant amounts.

Banks do not send EFT data along with the check data in the bank file. However, visibility of EFT payments is available on the Check Reconciliation table until the EFT has cleared the bank. The automated Check Reconciliation process compares the Cleared Date of the EFT record on the Check Reconciliation table to the current day's date. If the date has elapsed and the Status is Disbursed, the process changes the Status to Paid and the EFT record is moved to the Paid Check table.

The Check Reconciliation process reconciles the EFT records with a Status of Warranted by setting the Recently Reconciled flag to True, when the Cleared Date is less than or equal to the Application System Date on the Application Parameters table. The process retains the Status as Warranted instead of changing it to Paid.