DC Transaction Type

The Disbursement Reclassification transaction cancels checks, warrants (including warrants with clearing funds) or electronic funds transfers (EFT) and it is used when performing reclassification types 4-6 (Stale, Escheat and Cancel). The processing of all three can be a manual task supported by a copy forward action from disbursement transactions into the reclassification, whereby the Cancellation Type selected determines the accounting and disbursement tracking updates. Alternatively, there are system processing alternatives to record many such updates in bulk. Refer to the “Advanced - Batch Processing” topic for a listing of these automated processes.

Once an event is recorded on a reclassification, that is commonly the last event in Accounts Payable. There are outside processes that update unclaimed property tracking systems and ultimately there is an accounting entry to remove the liability with a journal voucher. However, when the payment should be made to the vendor after a reclassification, it is a General Accounting Expense/Expenditure transaction used to make that payment out of the reclassification liability account, or another if transferred before payment. That payment request does not have to reference the reclassification, but it is possible with setup on Transaction Allowable References.  

When such a payment should reference the reclassification, there is a copy forward option that helps to complete the payment request. If the payment request is set up to require a vendor invoice, there is a warning in the case of referencing a reclassification that does not enforce the requirement for two reasons. First is that the reclassification does not have the original vendor invoice information to pass along. Second is that the Vendor Invoice Registry reports it as an overpayment.

The purpose of the Disbursement Reclassification transaction is three-fold:

• Update the Check Reconciliation table, particularly the Status, Check/EFT Number, Check/EFT Status, and Check/EFT Issue Date fields.

• Update the memo referenced Disbursement transaction with the Check/EFT Number and Check/EFT Issue Date when the Reclassification type is Warrant Reconciliation.

• Liquidate posting line entries (for example, warrants payable) created by disbursement transactions when using the Standard Warrant/EFT or Clearing Fund Warrant/EFT disbursement options.  

If an EFT was processed under the Warrant model and a WR transaction has already reclassified the Warrants Payable into Cash, any subsequent cancellation of the EFT will reverse the Warrants Payable but not the Cash. Therefore, additional manual accounting adjustments will be needed.

This transaction provides the ability to clear the warrant payable liabilities established by disbursement transactions under the Standard Warrant or Clearing Fund Warrant disbursement models.  The WR reclassifies money from a warrant payable liability account that was originally charged by the disbursement transaction to represent the remittance of a check or EFT to a cash account.  The remittance represents the redemption of the check or EFT by the payee.

The Warrant Reconciliation transaction may be created online through a Copy Forward action from a disbursement transaction.  The transaction may also be created by an offline process, which loads data into Warrant Reconciliation (WR) transactions through the system maintenance utilities.

The purpose of the Warrant Reconciliation transaction is three-fold.

• Update the Check Reconciliation table, particularly the Status, Check/EFT Number, and Check/EFT Issue Date fields.

• Update the memo referenced Disbursement transaction with Check/EFT Number and Check/EFT Issue Date.

• Liquidate posting line entries (for example, warrants payable) created by disbursement transactions when using the Standard Warrant/EFT or Clearing Fund Warrant/EFT disbursement options.

The Automated Warrant Reconciliation (AWR) Transaction Code is a clone of the WR Transaction Code. The AWR transaction is generated as part of the Generate Warrant Reconciliation Transaction process, and is used to reclassify check payments that were made under the Warrant accounting model to Cash. The AWR transaction can only be created by the Generate Warrant Reconciliation Transaction process.

The Disbursement Cancellation (DC) Transaction Type has the following Transaction Codes (listed alphabetically by Transaction Name).

Name	Transaction Code	Intended Use
Automated Warrant Reconciliation	AWR	The AWR Transaction Code is a clone of the WR Transaction Code. The AWR transaction is generated as part of the Generate Warrant Reconciliation Transaction process, and is used to reclassify check payments that were made under the Warrant accounting model to Cash. The AWR transaction can only be created by the Generate Warrant Reconciliation Transaction process.
Disbursement Reclassification	DC	This transaction cancels checks, warrants (including warrants with clearing funds) or electronic funds transfers (EFT), and is used when performing reclassification types 4-6 (Stale, Escheat and Cancel).
Warrant Reconciliation Transaction	WR	This transaction provides the ability to clear the warrant payable liabilities established by disbursement transactions under the Standard Warrant or Clearing Fund Warrant disbursement models.

 

For detailed steps of how to perform a particular task, select from the following tasks:

• Cancel and Reissue a Disbursement

• Cancel a Disbursement and Do Not Reissue