ACH Exception Items

The ACH Exception Items window lets you post rejected items, return rejected or posted items, generate a notification of change, and assess fees and produce notices for individual members or all members appearing on the ACH Exception Items window. Information specific to international (IAT) transactions are also included on the ACH Exception Items window to allow for efficient OFAC screening and item processing.

To use the ACH Exception Items window, the Returns checkbox must be selected on the Credit Union Profile – ACH/Payroll tab and you must be set up as an ACH originator with your Federal Reserve Bank.

To access the ACH Exception Items window, on the Portico Explorer Bar, select ACH in the Operations menu. On the ACH top menu bar, select Exception Processing, then select Exception Items to review existing items.

ACH Exception Items

How do I? and Field Help

Select the File Date down arrow to select a date from the pop-up calendar or enter the date in MM/DD/YYYY format (Keyword: RD). Then, select the green arrow to view the exception items.

To view only member or GL items, select the Member option or GL option. To view the exception items beginning with a specific account number, enter the member account number or general ledger account number followed by the branch (Length: 12 numeric). Then, select the green arrow.

The Code and Value dropdown list let you view exception items that meet certain criteria such as “credits only” or “exception code equals R03.” Filtering is available on transaction code, SEC code, exception code, or for represented items. From the Code dropdown list, select Exception Code, SEC Code, Represented Items, or Transaction Code. Then select the appropriate code from the Value dropdown list.

The Use Default Effective Date for Debit Items checkbox and pop-up calendar let you enter an effective date for a specific file date and post all items with that effective date, eliminating the need to manually change the effective date for each item individually. On the day after dividends are paid, you must change the effective date of debit items with a previous month effective date to the first of the month. For example, if dividends are paid April 30, any debit items with an effective date of April 30 must be changed to May 1. You can easily change the date for all the items using the Use Default Effective Date for Debit Items checkbox and pop-up calendar.

Select the Use Default Return Codes checkbox to use the default return code defined on the Customized ACH Exception Processing window.

Select the Display Unprocessed Remaining Items checkbox to display all the exception items that have not been processed.

Select the item summary icon button on the ACH Exception Items window to display the ACH Exception Items Summary window.

Select the report retrieval icon button to display the Report Retrieval dialog box and display the ACH posting/exception reports in Nautilus Essentials.

Select the online fee icon button to display the ACH Online Fees window.

The ACH Exception Items grid displays up to 50 items at a time. Select the left and right arrows in the grid to scroll to the previous page and next page of the ACH file being reviewed. You can retrieve and display up to 50 items at a time. A More button will appear if additional records exist for the file date. The Exception Items window initially appears with blank Action, Return Code, Notice, and Fee fields. Specify the desired action, return code, notice, and fee options. Then, select Save.

Column	Description
View Name	Select the View Name button on the ACH Exception Items grid to display the member’s name on the same row as the exception.
More	Select More to view additional records for the file date.
Action	Select the Action down arrow next to the item you want to process and select: Return - Return a rejected item and build the ACH Return Item dialog box. You can submit a Notification of Change request at the same time you return an item by selecting a code from the NOC Code dropdown list. Post - Post an item. You can submit a Notification of Change request at the same time you post an item by selecting a code from the NOC Code dropdown list. For items with exception code EDT, the only valid option for the Action field is Post. You cannot return disputed transactions, produce notices or charge fees. You can post an item when the item’s ACH transaction code does not match the account type. For example, an item with a credit to loan transaction code can be posted to a share account. Items that reject with stop payment exception codes can be posted without having to delete the stop payment record first. A confirmation message will appear to verify the posting request. NOC - Generate an NOC and build the Notification of Change window. Select the NOC Code down arrow to select the correction code. Portico will automatically display the appropriate fields on the NOC Details tab. Rev/Ret - Return a posted item. Specify a return code in the Return Code field and select Save. Return codes R71, R72, R73, and R74 cannot be used on the ACH Exception Items window. You must use the Single Return Item window to process these return codes. Change - Use this action to change the Notice and/or Fee checkboxes after you have processed an item using the Return or NOC action.
Return Code	Specify a return code in the Return Code field and select Save. Return codes R71, R72, R73, and R74 cannot be used on the ACH Exception Items window. You must use the ACH Return Item dialog box to process these return codes. You can select return code R07-Authorization revoked by customer for ACH items with an SEC code of TEL or WEB. If you use return code R17, Portico will automatically enter QUESTIONABLE in the Reason for Return field. For the IRS Refund Return Opt-In Program, NACHA recommends entering one of the following reasons: 17: Name Mismatch 18: ID Theft 19: Questionable Refund Keyword: RC
Notice	Select the Notice checkbox next to the item to produce a notice for the item. If the Notice checkbox is selected on the Credit Union Profile – ACH/Payroll tab, the Notice checkbox on the ACH Exception Items window will be shaded, indicating that it is selected.
Fee	Select the Fee checkbox next to the item to assess a fee for the item. If the Fee checkbox is selected on the Credit Union Profile – ACH/Payroll tab, the Fee checkbox on the ACH Exception Items window will be shaded, indicating that it is selected.
NOC Code	Select the NOC Code down arrow to select the correction code. Portico will automatically display the appropriate fields in the Correction Data group box. Keyword: CE
Account Number	The account number associated with the ACH item.
SEC Code	The SEC code associated with the item. Draft items with an SEC code of IAT will be verified against the Share Draft and ACH Stop Payment files when they are posted from the ACH Exception Items window to ensure all stop payment suspects are identified. The type of items in the batch. The valid options are: ACK - ACH Payment Acknowledgment ADV - Automated Account Advices ARC - Accounts Receivable Entry ATX - Financial EDI Acknowledgment BOC - Back Office Conversion CCD - Corporate Credit or Debit CIE - Customer Initiated Entries COR - Automated Notification of Change CTP - Corporate Trade Payment CTX - Corporate Trade Exchange DNE - Death Notification Entries ENR - Automatic Enrollment Entry IAT - International ACH Transaction MTE - Machine Transfer Exchange POP - Point of Purchase Entry POS - Point of Sale PPD - Pre-arranged Payments and/or Deposits RCK - Represented Check Entry TEL - Telephone Initiated Entry TRC - Truncated Entries TRX - Truncated Entries Exchange WEB - Internet Initiated XCK - Destroyed Check Entry Length: 3 alphanumeric Keyword: SE
Txn	The ACH transaction code. 05 - Loan Advance 22 - Credit to share draft/checking - valid for micro-entries, valid receiving transaction for same-day outgoing ACH credit item 23 - Prenote or ENR of credit to share draft checking 24 - Acknowledgment to share draft/checking 27 - Debit to share draft/checking - valid for micro-entries, valid back-office transaction for Person-to-Person (P2P) credit transactions and same-day outgoing ACH debit items. 28 - Prenote of debit to share draft/checking - valid receiving transaction for micro-entries, frequency must be Request, and effective date must be 3 business days in the future. 32 - Credit to shares/savings - valid for micro-entries, valid receiving transaction for same-day outgoing ACH credit item 33 - Prenote or ENR of credit to shares/savings 34 - Acknowledgment to shares/savings 37 - Debit to shares/savings - valid for micro-entries, valid back-office transaction for Person-to-Person (P2P) credit transactions and same-day outgoing ACH debit items. 38 - Prenote of debit to shares/savings - valid receiving transaction for micro-entries, frequency must be Request, and effective date must be 3 business days in the future. 42 - Automated general ledger deposit (credit) - valid receiving transaction for same-day outgoing ACH credit item 43 - Prenotification of general ledger credit authorization 47 - Automated general ledger payment (debit) - valid back-office transaction for same-day outgoing ACH debit items. 48 - Prenotification of general ledger debit authorization 52 - Automated loan account deposit (credit) - valid receiving transaction for same-day outgoing ACH credit item 53 - Prenotification of loan account credit authorization 54 - Acknowledgment to loan 55 - Debit to loan (reversal only) Length: 2 numeric Keyword: TC
Amount	The amount of this ACH transaction. A valid ACH transaction amount can be 0 through 99,999,999.99. Length: 11 numeric including decimal Keyword: AM
Available	The available balance of the account. The amount is adjusted when an item is processed by the system.
Acct Type	The type of account: S (share) or L (loan).
Acct	The share type.
Excp Code	The exception code associated with the item.
Src	The source of the ACH item. The valid options are: E - Electronic Interface System (EIS). The only valid option for the Action field is Post. F - Federal Reserve Bank (FRB). The valid options for the Action field are Return, NOC, Post, and Rev/Ret. O - Origination. The only valid option for the Action field is Post. X - File Exchange (XROADS).
Status	The status of the item: Posted, Returned, NOC Only (when an NOC is submitted but the item is not returned or posted), and Blank (when the item has not been processed).
SD Excp	A red checkbox identifies members who have share draft exceptions for the same processing date. Select on the icon button in the SD Excp column to display the Share Draft Exceptions dialog box containing the member’s share draft exception items.

The Processing Info tab displays the draft number, SEC code, company name, and OFAC message. The OFAC alert message appears when the member’s OFAC Match checkbox is selected on the Ownership Information tab.

Field	Description
Mbr/GL	Select the Mbr option to view member exception items. Select the GL option to view GL exception items. Keyword: T2
Corrected Account	If the member number in the grid begins with a 9, you can enter an alternate member number in this field. Select the member lookup button to display the Member Search dialog box. Length: 21 numeric
OFAC Alert Message	The OFAC alert message appears when the member’s OFAC Match checkbox is selected on the Ownership Information tab.
Member Message	Important information about the member.
Name	The name of the member associated with the exception item. Length: 29 alphanumeric
Effective Date	Select the down arrow to select the posting effective date from the pop-up calendar or enter a date in MM/DD/YYYY format. The system will not allow you to specify a prior month date. Keyword: ED
Share for Fee	Select the down arrow to select the share account that will be assessed the fee associated with the ACH item.
Date of Death	For return codes R14 and R15, the deceased date from the Contact Information tab will automatically appear in the Date of Death field.
Reason for Return	The credit union-defined reason for returning the ACH item. If you use return code R17, Portico will automatically enter QUESTIONABLE in the Reason for Return field. For the IRS Refund Return Opt-In Program, NACHA recommends entering one of the following reasons: 17: Name Mismatch 18: ID Theft 19: Questionable Refund You can sign up for the IRS Refund Return Opt-In Program on the NACHA website at: https://www.nacha.org/content/additional-ach-programs-and-information. Length: 44 alphanumeric characters (34 characters for IAT transactions)
Posted Avail Balance	The item’s posted available balance. For items processed in the back-office cycle and paid with courtesy pay funds, uncollected funds or a combination, this field will be populated when you access the ACH Exception Items window. If the item is reversed, the Posted Available Balance field is changed to .00. If the item is then paid, the Posted Available Balance field will be recalculated to consider any possible deposits or other activity. For items posted online, this field will not be populated until the item is processed and paid online. As a benefit to your members, any deposits or debits made prior to working the exception items online are taken into consideration in the calculation of the posted available balance. To display the account list pop-up, select the exception item row, then mouse over the member’s available balance.
CAN	The computer-assigned number associated with the ACH item. Length: 7 numeric Keyword: AN
NFCAN	The non-financial computer-assigned number associated with the ACH item. Length: 7 numeric
Company Name	The company name associated with the ACH item.
Draft Number	The share or loan draft serial number.
Discretionary Data	The discretionary data (DD) code as specified on the ACH file and is used to additionally qualify an ACH item. This field will be blank if there is not a DD code on the ACH file. If the item is a point-of-sale (POS) transaction that you are returning, you must specify a card transaction type code in this field even if the item was sent to Fiserv without a discretionary data code. If you do not, the Federal Reserve Bank will reject the item with an R26 - Mandatory Field Error. The valid card transaction code types are: 01 - Purchase of goods or services 02 - Cash 03 - Return reversal 11 - Purchase reversal 12 - Cash reversal 13 - Return 21 - Adjustment 99 - Miscellaneous transaction Length: 2 alphanumeric Keyword: ID
Trace Number	The trace number assigned by the originating institution. Length: 7 alphanumeric Keyword: TR Only the last 7 digits (including any leading zeros) of the trace number appear.
Original ACH Member Name	The name on the record on the incoming ACH file.
Bank Acct Number	The number normally used to identify the member at the credit union.
Individual ID	The number normally used to identify the individual at the originating company. This field can be used to locate the credit union member via ATM ID, share draft ID, secondary ID, social security number, or member number.

A "Represented Item" indicator appears in red text between the Trace Number and Individual ID fields if the item has been identified as represented. Portico considers all ACH items with RCK as the standard entry class as represented items regardless of the description in the Company Entry Description field of the batch header. For ACH items, Portico also looks for the following descriptions on ACH items with all incoming standard entry class codes:

REDEPCHECK
RETRY PYMT or RETRYPYMT (with and without the space)
RETRY PAYM or RETRYPAYM (with and without the space)

Portico will not charge an NSF fee or overdraft fee on a represented item if the Allow Represented Fee checkbox on the Credit Union Profile - ACH/Payroll tab is cleared (N).

To print notices for all the members appearing on the Exception Items window, select Print Notice (Keyword: PN). To print notices for a specific member appearing on the Exception Items window, select the item row to select the desired member. Then, select Print Notice. If your credit union offers electronic notices, when you click the Print Notice button, a popup message will appear indicating the number of notices sent to the printer and the number of notices sent electronically. If the Secure Member Number on Notices check box is selected on the Credit Union Profile - Credit Union tab, Portico will mask the member number printed on the notice by printing Xs or asterisks (*) followed by the last four digits of the member number.

Select the ACH/Share Draft Stop Pays icon button to display the Member Stop Pays dialog box to view, add or delete ACH and share draft stop pay records. This icon button will feature an exclamation point if the member has existing ACH or share draft stop pays.

Select the financial transaction icon button to display the Transaction tab.

Select the member information icon button to display the Member Information dialog box.

Select the ACH Exception/Return History icon button to display the ACH exception/return history for the member.

Select the ACH pending icon button to display the pending ACH items for the member.

Select an exception item and select the ACH Cross Reference icon to display the ACH Cross Reference. Portico automatically adds the member ACH information from the exception item to a new row in the ACH Cross Reference. If the ACH item was rejected due to an incorrect member number or share type, you can enter the correct member or share type and select Save to add the record to the ACH Cross Reference. Portico begins using this entry to post ACH items starting with the next batch of ACH items received. You also can specify the correct member number on the Processing Info tab before accessing the ACH Cross Reference to populate the correct member number in the new row. Portico cannot use the ACH Cross Reference to identify the following ACH items:

ACH items with SEC code IAT, CCD or CTX
ACH items with transaction code 52, 42, 47, 23, 28, 29, 33, 38, 34, 39
ACH items that require a serial number and are posted in the back-office cycle with SEC code TRC, XCK, ARC, BOC, RCK, and POP

Several fields from the 170 Report appear on the Item Details tab, allowing for paperless research.

Item Details

Field	Description
Account Number	The member's account number, or the general ledger account number followed by the branch.
Name	The member's name or GL account name.
Batch #	The identification number assigned by the front-end ACH processor.
Batch Description	The description of the batch.
Post By XRef	The cross reference posting indicator used to match an ACH item to a member number. A – ATM ID B – Debit ID C – Member Number D – Share Draft ID E – EFT ID F – Match S Format G – General Ledger H – ACH ID N – SSN S – Secondary ID
Company Name	The name of the company sending the transaction.
Company ID	The company ID number established by the originating financial institution (OFI) for purposes of identifying the source of the entry.
Company Discretionary Data	The discretionary data code assigned by the OFI. This code must be included when an item is returned.
OFI R/T	The number identifying the originating financial institution.
Transaction Type	The secondary SEC code for IAT items.
Gateway	The OFAC screening indicator used by the Gateway Operator. It will be populated by the Federal Reserve for inbound IAT transactions that are processed through their Fed ACH International Service. This field is optional for other Gateway Operators.
Secondary	The OFAC screening indicator used by the third-party service provider.

The NOC Details tab displays original and corrected information when processing ACH item correction. The existing/original information appears to the right of the corrected information.

NOC Details

Field	Description
Type	The type of account for which the original transaction was posted. The valid options are: Certificate, General Ledger, Loan, Mortgage Loan, Share, IRA Withholding. Keyword: ST
Product Code	The product code associated with the transaction.
Correction Data Account Number	The correct account number to use for the transaction. Length: 17 numeric Keyword: CF
Existing Data Account Number	The account number in which the original transaction was posted.
Routing and Transit	The routing and transit number in which the original transaction was posted.
Correction Data Transaction Code	Select the down arrow to select the correct ACH transaction code.
Existing Data Transaction Code	The ACH transaction code of the original transaction.
Correction Data DFI ID Number	The correct company ID number established by the originating financial institution (OFI) for purposes of identifying the source of the entry.
Correction Data Identification Nbr	The correct number used to identify the individual at the originating company.
Addenda	The addenda information associated with the transaction.

The following NOC codes will enable the appropriate field for maintenance on the NOC Details tab when applied. All are numeric only with the exception of C13.

C01 - Incorrect account number
C02 - Incorrect route and transit number
C03 - Incorrect route and transit number and incorrect account number
C05 - Incorrect transaction code
C06 - Incorrect account number and transaction code
C07 - Incorrect route and transit number, account number and transaction code
C08 - Incorrect receiving DFI identification number
C09 - Incorrect individual identification number
C13 - Addenda format error

Processing Exception Items

To process an item on the ACH Exception Items window, select the Action down arrow next to the item you wish to process and select:

Return - Return a rejected item and build the Single Return Item window. You can submit a Notification of Change request at the same time you return an item by selecting a code from the NOC Code dropdown list.
Post - Post an item. You can submit a Notification of Change request at the same time you post an item by selecting a code from the NOC Code dropdown list. You can post an item when the item’s ACH transaction code does not match the account type is now allowed. For example, an item with a credit to loan transaction code can be posted to a share account. Items that reject with stop payment exception codes can be posted without having to delete the stop payment record first. A confirmation message will appear to verify the posting request.
NOC - Generate an NOC and build the Notification of Change window. Select the NOC Code down arrow to select the correction code. Portico will automatically display the appropriate fields on the NOC Details tab.
Rev/Ret - Return a posted item. Specify a return code in the Return Code field and select Save. Return codes R71, R72, R73, and R74 cannot be used on the ACH Exception Items window. You must use the Single Return Item window to process these return codes.
Change - Change the item information

Select Submit to process the exception items. Portico will use the fee and notice defaults for the current items.

Select the print icon button to print the ACH exception items. Select the Print Receipt checkbox to print a receipt of the items processed.

Processing actions can be corrected the same day from the ACH Exception Items window for items that were posted or returned in error. You can also correct an item posted to the wrong member number. The original posted transaction and reversal transaction will not appear on the original member’s statement.

Portico recommends processing returned items the same day they appear on the ACH Exception Items window. At 5:00 p.m. CST, the ACH Exception Items window file closes for processing. All items for a specific run date will remain on the ACH Exception Items window for 10 days before purging. If you do not process an item, the item will purge from the ACH Exception Items window along with the processed items when Fiserv sends the returned items to the Federal Reserve Bank during the nightly batch cycle.

If the Adjust ACH GL Account checkbox is selected in the ACH Returns NOC section on the Credit Union Profile - ACH/Payroll tab, the system will automatically adjust the suspense and clearing or in-transit accounts for all the items you return. Otherwise, you must manually adjust the accounts.

The system updates the ACH suspense general ledger account specified on the ACH Processing Options window with the amount of the rejected items when the ACH batch posts. The amount of any rejected items that you post with the ACH Exception Items window will provide the offsetting entries to the ACH suspense account and the member's account. The offsetting entries will be in branch 000, not in the member branch.

Returned items must adjust the ACH suspense account and the ACH clearing or in-transit general ledger account specified on the ACH Processing Options window.

Daily ACH Exception files and ACH Return Item records will be available online for 10 days. If you process one item for a specific run date, the Items have been processed option on the Return Items Summary window will be selected and the system will purge the run date from the ACH Exception Items window. You can select the Retain ACH Items option to save the data if you are not completed with the run date. An ACH history record is created when an item is posted from the ACH Exception Items window. General ledger adjustment entries are posted to branch 000.

Select the checkmark button in the SD Excp column to display the Share Draft Exceptions dialog box.

For credit unions with a Positive Balance File (PBF) ATM and/or debit card program…

If your credit union uses a positive balance file to authorize ATM or debit card transactions, the settlement transaction is received as an ACH transaction. ACH processing considers standard entry codes of POS and SHR as debit card transactions, only if they are posted by a debit ID and MTE as ATM transactions. Only POS and SHR items posting by a debit ID will be considered a one-time debit card transaction, causing Portico to look at the ATM/Debit Card Processing and Fees Opt-In option before assessing a fee on an ACH exception item.

ACH exception codes will be generated in the back-office cycle to assist you in identifying those members that have Opted-Out for overdraft processing on these transactions. If an ACH item posts using posting option ‘N- Pay negative’ or ‘Z-Pay up to zero balance using Courtesy Pay or uncollected funds’, the item will post and appear with an exception code of E1B – EFT Insufficient Item – Member Opted-Out. The Fee checkbox will not be selected on the ACH Exception Items window. If an ACH item posts using posting option ‘Z-Pay to zero balance’ or ‘M-Pay to minimum’ and the item exceptions due to insufficient funds, the item will reject as NSF with an exception code of E01 – EFT Item Paid Negative – Member Opted-Out. The Fee checkbox will not be selected on the ACH Exception Items window.

Charging Fees and Producing Notices

The ACH Exception Items window also lets you assess fees and produce notices for individual members or all members appearing on the ACH Exception Items window. You can assess fees and produce notices for items that are Returned, Paid - Negative Balance, Paid - Uncollected Funds, Paid – Miscellaneous, or Paid – Courtesy Pay. ACH NSF Fees are assessed in the back-office cycle.

Using the ACH Exception Items window, you can charge fees for specific ACH items listed on the ACH Exception Items window, produce online notices for all ACH items listed on the ACH Exception Items window, specific ACH items, or for a specific member number, and charge a fee and/or produce a notice for ACH items not returned by the Federal Reserve (the EIS as Source checkbox is not selected on the Credit Union Profile – ACH/Payroll tab).

The Items have been processed option on the Return Items Summary window must be selected for notices or fees to be processed online or back office.

If Allow Represented Fee field on the on the Credit Union Profile - ACH/Payroll tab is N (unchecked), the ACH Exception Items window will not allow you to assess a fee on a represented ACH item.

Charging Fees

The Fee checkbox on the ACH Exception Items window lets you specify whether the system should charge a fee based on the fee type and amount specified in the Share Draft and ACH Exception Fees section on the Credit Union Profile – Shares tab. Complete the following steps to charge a fee for a specific item listed on the Exception Items window.

On the ACH Exception Items window, select the Action down arrow next to the item you wish to process and select Return, Post, or Rev/Ret.
Select the Return Code down arrow to select the desired return or paid code. Portico automatically will use the fee amounts specified in the Share Draft and ACH Exception Fees section on the Credit Union Profile – Shares tab to charge the appropriate fee. All credit unions can use ACH Courtesy Pay fees, regardless of whether your credit union has elected to use Portico Courtesy Pay processing. After paying an ACH item into overdraft (as a courtesy of the credit union), use return code CPY - Posted - Courtesy Pay to assess a credit union-defined Courtesy Pay fee. The fee messages that will appear on a member's statement for ACH items charged a Courtesy Pay fee are PA ACH COURTESY PAY FEE and PM ACH COURTESY PAY MAXIMUM FEE.
Select the Fee checkbox next to the item. The default Fee checkbox selection is specified on the Credit Union Profile – ACH/Payroll tab. If the Fee checkbox is selected on the Credit Union Profile – ACH/Payroll tab, the Fee checkbox on the ACH Exception Items window will be shaded, indicating that it is selected.
To assess a fee to an alternate share type, select the Share for Fee down arrow to select the share type.
Select Save.

To waive a fee for a specific item that currently has the Fee checkbox selected, select the Action down arrow next to the item and select Change. Clear the Fee checkbox next to the item and select Save.

Producing Notices

You can print a 167 Report notice for an individual member or for all the members listed on the ACH Exception Items window using Notice field and the Print Notice button. The Print Notices field must be O on the Credit Union Profile – ACH/Payroll tab. If your credit union offers electronic notices, when you click the Print Notice button, a popup message will appear indicating the number of notices sent to the printer and the number of notices sent electronically. If the Secure Member Number on Notices check box is selected on the Credit Union Profile - Credit Union tab, Portico will mask the member number printed on the notice by printing Xs or asterisks (*) followed by the last four digits of the member number.

Print Notices for a Specific Item

The Notice field on the ACH Exception Items window lets you specify whether the system should create a notice for a specific item based on the fee or posted type specified on the Credit Union Profile – ACH/Payroll tab. If the Notice checkbox is selected on the Credit Union Profile – ACH/Payroll tab, the Notice checkbox on the ACH Exception Items window will be shaded, indicating that it is selected. To produce a notice for a specific item that currently does not have the Notice checkbox selected, select the Action down arrow and select Change. Then, select the Notice checkbox next to the item and select Save.

If you do not want to produce a notice for a specific item that currently has a selected Notice checkbox, select the Action down arrow and select Change. Then, clear the Notice checkbox next to the item and select Save.

Select Print Notice to produce online notices at this time. This feature can only be used by credit unions that produce online notices. Credit unions that use Remote Print, Report Imaging or Distributive Print will print a notice for all the items on the ACH Exception Items window that have Y in Notice field after back office processing and according to the method used for creating the notice.

Print Notices for All Members

To print notices for all the members appearing on the ACH Exception Items window, select Print Notice. The Portico - Printer IDs dialog box appears. Confirm that the printer contains the forms and that you are ready for the system to print the notices and select OK.

Print Notices for a Specific Member

To print notices for a specific member appearing on the ACH Exception Items window, select the item row to select the desired member. Then, select Print Notice. The Portico - Printer IDs dialog box appears with the member number in the Only for member field. Confirm that the printer contains the forms and that you are ready for the system to print the notices and select OK.

Before printing online notices, all ACH items for prior days must be processed and the Items have been processed option on the Return Items Summary window must be selected for each prior day's activity to reduce the risk of duplicating online notices. Duplication also can occur if you process some items and print notices, then process more items the next day and print notices. The second printing can contain the items from the prior day.

Once all of the ACH items for the prior days are processed and the Items have been processed option is selected for each prior day's activity, you can proceed with the Print Notices instructions described in this section. All prior day activity with the Items have been processed option selected and valid values in the Notice and Fee checkboxes on the ACH Exception Items window will be processed for fees and/or notices at that time.

For back-office printing of notices, all prior day activity with the Items have been processed option selected and valid values in theNotice and Fee checkboxes on the ACH Exception Items window will be processed for fees and/or notices in the back-office cycle that night.

Grace Amount Processing

Portico exceptions will recognize deposits made after the exception file has been created based upon the time the item is paid. For instance, if a member makes a deposit early in the morning before the exception items have been worked, when the exception clerk pays the item and selects the Fee checkbox to charge a fee, Portico will look at the adjusted available balance. If the adjusted available balance is within the grace amount, the fee will not be charged.

For example, a member has a grace amount of $10.00 on their share draft account. On the ACH Exception Items window, the member has two items, $50.00 and $150.00, and the member has an available balance of $48.72. The Action column is set to Post for the first and second item for the member and the Notice and Fee checkboxes are selected. After posting the first item for $50.00, the ending available balance is -1.28, which is within the grace amount. As a result, Portico clears the Fee checkbox for this item. The second item for $150.00 posted causes the available balance to exceed the grace amount, so the Fee checkbox remains selected. The ACH Online Fees dialog box indicates that the member was only assessed a fee for the second item.

Share draft and ACH exceptions that are posted to another member number/account via the Share Draft Exception Items window will consider the grace amount for the alternate member’s share type before assessing a fee.

For credit unions that currently post all items negative regardless of the account’s available and actual balance, the items will continue to reject with an A4 exception code and fees may be assessed on the Share Draft Exception Items window on the following business day.

Grace Amount Processing only applies to posted transactions. There is no member-level override. Overdrawn accounts will still appear on the Overdrawn Shares Report 040, but will be in the Posted Category section.

ACH Items Not Returned Through the Federal Reserve

ACH NSF Fees and Notices lets you produce a notice and/or charge a fee for ACH items that are not returned through the Federal Reserve. On the ACH Exception Items window, select the Action down arrow next to the item you wish to process and select Return. Then, select the Return Code down arrow and select RFN. Select Save. The ACH Exception Items window will create the notice and assess the fee, but will not return the item. The message ITEM RETURNED: INSUFFICIENT FUNDS will appear on the 167 Report notice.

The EIS as Source checkbox is selected on the Credit Union Profile – ACH/Payroll tab.

If the Share Balance field is Post to negative (N) on the ACH Processing Options window, ACH NSF Fees and Notices will automatically enter the default selection specified on the Credit Union Profile – ACH/Payroll tab in the Fee field and Notice field on the ACH Exception Items window. Portico will automatically use the default value if the exception codes E1C, E1D and E1E appear in the Exception Code field causing NEG or UNC to appear in the Return Code field on the ACH Exception Items window. These items can be left as is and Portico will assess the fee and generate the notice according to the default values or you can return these items manually. To return these items manually, select the Action down arrow and select Rev/Ret, enter the desired return code in the Return Code field and select Save. Or, select the Action down arrow and select Change and change the Fee and/or Notice field to the desired value and select Save.

Posting Loan Advances via ACH Exception Items

When you post a loan advance using the ACH Exception Items window, Portico will update the loan information on the Loans tab.

When a loan advance is performed on a zero balance, open-end loan, the following fields are maintained:

The Last Balance, Last Date and Counter fields in the Loan Advances group box on the General tab.
If the date in the Due Date field on the General tab is in the past, the date is advanced to a future date.
The Paid to Date field in the Late Charges group box on the General tab is updated to the same date as the due date.
The Date Interest Last Calculated field on the Interest/Charges tab is updated to the effective date of the advance.

When a loan advance is performed on an open-end loan with a balance, the following fields are maintained:

The Last Balance, Last Date and Counter fields in the Loan Advances group box on the General tab.
The Date Interest Last Calculated field on the Interest/Charges tab is updated to the effective date of the advance.
The interest is calculated to the effective date of the loan advance and added to the value in the Finance Charges Calculated But Not Collected (FCCBNC) field in the Interest Due group box on the Interest/Charges tab.

ACH Exception Items Corrections

Wrong Return Code: If the wrong return code was submitted, select the Action down arrow and select Change. Then, correct return code and select Submit.

Item Posted to Wrong Member: If the item was posted to the wrong member number, select the Action down arrow and select Change. Then, enter the correct member number in the Corrected Account field and select Submit. The item will be reversed from the original member’s account. The reversal will not print on the member’s statement if the Print on Statement checkbox is not selected in the Reversal Options section on the Credit Union Profile - History/Reversals tab.

Returned Item Should Have Been Posted: If a returned item should have been posted...

And online fees have not posted or the returned item did not have a fee assessed during online fee posting:

To post without a fee or a notice, select the Action down arrow and select Post. Change the Return Code field to blank and clear the Fee and Notice checkboxes. Then, select Submit.
To post with a fee and/or notice, select the Action down arrow and select Post. Change the Return Code field to NEG, CPY, UNC or MIS. Select the Fee and/or Notice checkboxes. Then, select Submit. If online fees have posted, the Fee checkbox must not be selected.

And online fees have posted:

Select the Action down arrow and select Change. Change the Return Code field to blank and select Submit. This will remove the item from the ACH Return Items window and it will not be sent to the Federal Reserve.
Manually reverse the return fee if necessary.
Manually post the ACH item to the member’s account.
Submit a JV entry to adjust the ACH suspense and in-transit GL accounts if necessary.

If the post action is submitted on a returned item after online fees have posted, the message ACH has already been processed for fees appears. At this point, you can select the Action down arrow and select Change. Then, verify that the Return Code field is set to blank. This will change the Return Code field to blank on the ACH Exception Items window, but the status on the item will still be Returned. You can go to the ACH Return Items window to verify that the item does not appear and will not be included in the return file sent to the Federal Reserve. The No Return item appears on the Exception Items Summary window with NO RETURN in place of the return code. This makes it easy to see the amount of the No Return items if a JV entry needs to be made to adjust the GL accounts. The online fee that posted for the No Return item will have RZZ in the Return Code field on the ACH Online Fees window. This makes it easy to find fees that need to be reversed.

Item Posted Needs to be Returned: If a posted item should have been returned...

And online fees have not posted, select the Action down arrow and select Return. Then, enter a return code and select Submit. The item will be reversed from the member's account.

And online fees have posted and the item was Posted using a non-return code with a fee:

Locate the posted item on the member’s History - Financial Transaction History tab.
Select the ACH History button for the item and submit the item for return from history.
Manually reverse the fee and the posted item from the member’s account.

Item Posted in Back-Office Needs to be Returned: If an item that posted in back office needs to be returned. Select the Action down arrow and select Rev/Ret. Then, enter a return code and select Submit.

Return of ACH Prenotifications (29, 39 and 49)

Portico will allow you to return ACH prenotifications with transaction codes 29, 39 and 49 from the ACH Exception Items window.

For consumer prenotifications with an SEC code of CCD, CTX or IAT and a transaction code of 29 (checking zero dollar remittance data) or 39 (savings zero dollar remittance data), the following return codes can be used:

R02-Account Closed
R03-No account found
R04-Invalid Account
R05-Unauthorized CCD or CTX debit to consumer account
R06-Returned per ODFI’s Request
R12-Account Sold to another DFI
R14-Member Deceased
R15-Beneficiary or Account Holder Deceased-Consumer only
R16-Account Frozen
R23-Credit Entry refused by Receiver

For non-consumer prenotifications with an SEC code of CCD or CTX and a transaction code of 49 (general ledger zero dollar remittance data), the following return codes can be used:

R02-Account Closed
R03-No account found
R04-Invalid Account Number Structure
R06-Returned per ODFI’s Request
R14-Representative Payee Deceased-where representative is an institution authorized to accept entries on behalf of one or more persons
R16-Account Frozen
R23-Credit entry Refused by Receiver
R31-Permissable return (CCD and CTX only)

Correction Tips:

Corrections cannot be made once a worked exception item has been processed in the back-office cycle.
If the Reversals - Same Day Reversals tab is used to correct posted items, the error message 'Subsequent activity for this account must be reversed' may appear when there is more than one exception item being corrected. In this case, corrections should be made one at a time, beginning with the last item posted in error.
Once an item has been posted it cannot be changed back to “un-worked”. It must either be posted to a corrected account or returned.

General Ledger Effects:

When an ACH item is rejected in the back-office cycle, the exception item is assigned the general ledger account based on the ACH table (ACH Processing Options window) used to process the item. ACH exception items posted online using the ACH Exception Items window will use the general ledger account assigned in the back-office cycle based on the ACH table (ACH Processing Options window) used to process the item.

The following general effects occur if the posted item is a deposit (ACH transaction code 22, 23, 32, or 33):

CREDIT 901XXX Share general ledger account specified on the Share Profiles - Account Information tab
DEBIT XXXXXX General ledger clearing or in-transit account specified on the ACH Exception Items window

The following general effects occur if the posted item is a withdrawal (ACH transaction code 27, 28, 37, or 38):

CREDIT XXXXXX General ledger clearing or in-transit account specified on the ACH Exception Items window
DEBIT 901XXX Share general ledger account specified on the Share Profiles - Account Information tab

The following general ledger effects occur if the posted item is a GL transaction code 42.

CREDIT XXXXXX General ledger as displayed on file
DEBIT XXXXXX Suspense GL as specified on the ACH Processing Options window

The following general ledger effects occur if the posted item is a loan advance (ACH transaction code 45):

CREDIT XXXXXX General ledger clearing or in-transit account specified on the ACH Exception Items window
DEBIT 701XXX Loan general ledger account specified on the Loan Profiles - Account Information tab

The following general ledger effects occur if the posted item is a GL transaction code 47.

CREDIT XXXXXX Suspense GL as specified on the ACH Processing Options window
DEBIT XXXXXX General ledger as specified on file.

The following general ledger effects occur if the posted item is a loan payment (transaction code 52):

CREDIT XXXXXX Principal, interest, late charge GL as specified on the Loan Profiles - Account Information tab
DEBIT XXXXXX Suspense GL as specified on the ACH Processing Options window

The following general ledger effects occur if the posted item is returned with exception codes E1C, E1D, or E1E:

CREDIT 901XXX Share general ledger account specified on the Share Profiles - Account Information tab
DEBIT XXXXXX General ledger suspense account specified on the ACH Processing Options window

Related Reports:

ACH Posting/Exception Report 170
ACH Origination Posting/Exception Report 173
ACH Return Items/Notification of Change Report 174
ACH Payroll Register Report 263
ACH Fees Report 169
ACH Reject Notice 167

Teller Balancing Effects: The teller balancing effects are as follows:

Adds the transaction amount to the Transfers/JV amount field on the Balancing and Close tab
Adds one to the Transfers/JV count field on the Balancing and Close tab

ACH Processing Scenarios: Portico will reject ACH debit items with code R02-Account Closed or On Hold and place them on the ACH Exception Items window in the following scenarios:

When the Post by Draft ID checkbox is selected in the ACH section on the Credit Union Profile – ACH/Payroll tab, Portico will attempt to match the item using the share draft ID. If a match is found, but the share/share draft account that the item should to post is closed or on-hold, the item will be rejected with code R02 and placed on the ACH Exception Items window.
When the Post by Draft ID checkbox is selected in the ACH section on the Credit Union Profile – ACH/Payroll tab, Portico will attempt to match the item using the ACH ID assigned to the share draft account. If a match is found, but the share/share draft account that the item should post to is closed or on-hold, the item will be rejected with code R02 and placed on the ACH Exception Items window.
If the ACH debit item is matched using the member number and the transaction code is 22 or 27, but the only share draft account available is on-hold or closed, the item will be rejected with code R02 and placed on the ACH Exception Items window. If the member does not have a share draft account, the item will be rejected with an R03-Account Not Found.
If the ACH debit item is matched using the member number and the transaction code is 32 or 37, but the only share account available is on-hold or closed, the item will be rejected with code R02 and placed on the ACH Exception Items window. If the member does not have a share draft account, the item will be rejected with an R03-Account Not Found.
If the ACH ID field on the Shares – General tab for the share draft account contains a valid ID and the transaction code for the ACH debit item is 22 or 27, but the share draft account is on-hold or closed, the item will be rejected with code R02 and placed on the ACH Exception Items window.
If the ACH ID field on the Shares – General tab for the share account contains a valid ID and the transaction code for the ACH debit item is 32 or 37, but the share account is on-hold or closed, the item will be rejected with code R02 and placed on the ACH Exception Items window.

If the transaction code is 22, 27, 32 or 37 for the ACH debit item and the item was matched by member number, but the member does not have a share/share draft account, the item will be posted to the next lowest share type if the Default Lowest Share Account checkbox has been selected.

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