Reversing Payments

Payment and Reversal Applied Before Cut-Off

An education loan payment may be reversed by using the Reversals – Same Day Reversals tab if the reversal is performed prior to the cut-off time the day of the transaction. If it is reversed prior to the cut-off time, the Reversals – Same Day Reversals tab will do the following:

• Credit the member (if payment was made by share transfer).
• Credit the appropriate GL for cash or check payments.
• Debit the education loan clearing GL.
• Remove the transaction from the teller's balancing screen.
• Delete the payment from the education loan batch transmission file.

Payment and Reversal Applied After Cut-Off

A education loan payment made after the cut-off time may be reversed by using the Reversals – Same Day Reversals tab if it is performed the day of the transaction. The Reversals – Same Day Reversals tab will do the following:

• Credit the member (if payment was made by share transfer).
• Credit the appropriate GL for cash or check payments.
• Debit the education loan clearing GL.
• Remove the transaction from the teller's balancing screen.
• Delete the payment from the education loan batch transmission file to be transmitted the next day.

Payment Applied Before Cut-Off and Reversal Applied After Cut-Off

After the cut-off time has passed, the system will not allow a payment applied before the cut-off time to be reversed using the Reversals – Same Day Reversals tab. If a payment must be reversed after the cut-off time or at a later date, the credit union must do the following:

• Journal voucher entries to correct their general ledger accounts and the member account (if payment was made by share transfer).
• Contact the education loan vendor to have the payment reversed on the vendor's side.