Balancing and Daily Procedures

Daily share draft procedures are dependent on the Allow Negative Balance Posting check box and the Uncollected Funds – Supported check box on the Credit Union Profile – Shares tab.

If the Allow Negative Balance Posting check box is not selected, all NSF share drafts will automatically debit the share draft suspense GL. The NSF items appear on the 450 Report and the Share Draft Exception Items window. The share draft returns will not appear on the member statement if the Allow Negative Balance Posting check box is not selected unless the draft is paid.

If the Allow Negative Balance Posting check box is selected, all NSF share drafts are posted to the member account, drawing the balance negative. All NSF items that draw the account negative appear on the 450 Report and Share Draft Exception Items window. Any drafts to be returned to the share draft processor are reversed using the Share Draft Exception Items window. A Reverse Posted Share Drafts window is automatically created to credit the member and debit the suspense GL and return the item to the share draft processor. The item can also be returned to the share draft processor by manually calling the share draft processor. Share draft returns will appear on the member statement if the Allow Negative Balance Posting check box is selected.

If the Uncollected Funds – Supported check box is selected and/or the Courtesy Pay – Processing Option field is Y, and either the Include Check Holds field, Include Debit Holds field, or Include ACH Pending field is Y, several types of items can appear on the 450 Report and Share Draft Exception Items window, including items paid with uncollected funds, items paid against the courtesy pay negative available balance limit, and NSF items. An item that is automatically paid against uncollected funds may bring the share draft account negative. Any items to be returned to the share draft processor are reversed using the Share Draft Exception Items window. A Reverse Posted Share Drafts window is automatically created to credit the member and debit the suspense GL and return the item to the share draft processor. The item can also be returned to the share draft processor by manually calling the share draft processor. The share draft exceptions items will appear on the member statement if the Uncollected Funds – Supported check box is selected and/or the Courtesy Pay – Processing Option field is Y, and either the Include Check Holds field, Include Debit Holds field, or Include ACH Pending field is Y.

Share draft balancing is dependent on the G/L Adjust field on the 450 Report Rules.

• If the G/L Adjust field is Y, during the back-office cycle, Portico will automatically credit the share draft suspense GL and debit the share draft liability GL for the amount of the returns.
• If the G/L Adjust field is N, Portico will not make any automated GL entries for the amount of the returns.