Direct Debit Return Rejections

The Direct Debit Return file you receive from your financial institution contains information about direct debit payments submitted for deposit. If the file contains a result code that matches a rejection code entered for the financial institution in Constituents, the program automatically matches the entry to the corresponding revenue record and marks the entry as rejected. The Is rejected checkbox in the Enhanced Revenue batch grid indicates which payments have been rejected. If you defined a default reason code for direct debit rejections, this code automatically appears in the Adjustment reason column. Otherwise, you can manually select a reason code for each rejected payment before you commit the batch.

Note: For information about direct debit rejections from a bank account which uses the "Europe (SEPA)" banking system, see Direct Debit Rejections and "Europe (SEPA)" Banking Systems.

When you commit a Direct Debit Return batch that contains rejections, the status of the matching revenue determines what occurs. If the rejected payments are currently in a revenue batch that has not been committed, these payment do not post. Instead, they appear in a batch exception report. If the revenue batch has been committed but has not yet been posted to the General Ledger, the program changes the amount and GL distributions on the revenue record to zero, adds Direct debit deposit is rejected to the Payment method section of the record, and displays the rejection’s result code. If the revenue batch has been committed and the transactions posted to the General Ledger, the program updates the post status on the revenue record to “Posted (Adjustment pending),” changes the GL distributions to zero, and adds a GL unposted adjustments section to the GL Distributions tab. This section displays the reversals applied to the revenue record as a result of the rejection.

Note: If the revenue that matches the rejected transaction in a Direct Debit Return file has been posted to the General Ledger, you must select a reason code in the Adjustment reason column of the Direct Debit Return batch file before you can commit the batch. If you previously selected a default reason code for rejections, this code automatically appears in the column.

For information about how to define rejection codes for financial institutions, see the Constituent Financial Institutions section of the help file. For information about how to add a default reason code for direct debit rejections, see the Reason Codes section of the help file.