Transfer Scenarios

Related Topics

Transferring from Non-IRA Accounts

The Selection Type field on the Member Transfer File Information dialog box determines the non-IRA account from which funds will be transferred. For each Non-IRA scenario, use the following Selection Type options:

1 - Search regular share accounts
2 - Search share draft accounts
4 - Search regular shares, then non-IRA certificates
8 - Search non-IRA certificates
or
In the Account Type/ID fields on the Member Transfer File Information dialog box, specify up to five individual non-IRA shares or certificates.

Recurring IRA Contributions

The IRS Deposit Code field on the Member Transfer File Information dialog box must indicate the IRA contribution code associated with this deposit. The contribution may be deposited into an IRA share or certificate indicated in the Acct Type/ID fields on the Member Transfer File Information dialog box.

Club Account Deposits

The member may select how much and how often they want to make club account deposits. The Member Number and Acct Type/ID fields in the Transfer To group box on the Member Transfer File Information dialog box designate the member number and the club account share type into which the funds are being deposited.

FICS Mortgage Payments

The Frequency field on the Member Transfer File Information dialog box must be M-Monthly for FICS mortgage payments. If the member elects to pay only the regular scheduled payment amount, the Transfer Type field must be P - Scheduled Loan Payment. Transfer File reads the Transactions – Vendor Credit Card, Mortgage & Education Payments tab for the payment amount based on the amount uploaded from the FICS application. If the member would like to pay a fixed payment amount each month where the excess is applied to principal, then an amount must be specified in the Amount/Target Balance field and the Transfer Type field must be Fixed Amount. The Account Type/ID fields in the Transfer To group box on the Member Transfer File Information dialog box must specify Mortgage and the FICS mortgage note number to which the payment is being applied. The Transfer Type field cannot be L - Loan Amount Due for FICS loans.

Loan Payments

An amount may be specified in the Amount/Target Balance field or the Transfer Type field can be P- Scheduled Loan Payment. Transfer File reads the Loans tab for the payment amount. The Acct Type/Acct ID field on the Member Transfer File Information dialog box must specify the loan and the note number to which the payment is being applied. When validating a transfer to a non-FICS mortgage loan with escrow, Portico includes the escrow amount when comparing the amount taken from the Transfer From account to the amount deposited into the Transfer To account. These amounts must be equal to keep the GL accounts balanced. Transfer file payments to mortgage loans will be included on the Mortgage Loan Notices Report 655. In addition, Transfer File allows you to:

  • Advance the transfer file next date on open-end loans with a zero balance, without regard to the number of unsuccessful transfer attempts.
  • Expire the transfer on a closed-end loan with a zero balance.
  • Make term loan payments on transfer file. Specify O - Loan Payoff in the Transfer Type field on the Member Transfer File Information dialog box to use the payoff amount.

When a loan is delinquent for multiple payments, the L – Loan Amount Due transfer type attempts to bring the loan current based on the scheduled payment amount. The transfer amount is calculated by multiplying the scheduled payment amount by the number of payments due. When the amount due is greater than the loan balance, Portico will determine the loan payoff amount and use that as the transfer amount.

Loan Amount Due

You can use Transfer File to schedule the transfer of funds based on the loan amount due instead of the regular payment amount. Using Transfer File instead of the loan application auto transfer function, allows you to set up cross member transfers and lowers credit union risk by letting Portico exhaust the funds in the share or share draft account to make a partial payment.

On the post date specified on the Member Transfer File Information dialog box, Portico will inquire on the loan and determine if the loan is current or has an amount due, then perform a transfer accordingly. If the loan due date is in the past and the Transfer From account has insufficient funds, Portico will transfer the available funds, then reset the Post Date field and attempt to satisfy the remaining loan amount due in the next back-office cycle. Portico repeats this process until the loan is brought current.

To transfer the loan amount due select L – Loan Amount Due from the Transfer Type drop-down list. The L – Loan Amount Due option instructs Portico to transfer funds based on the loan amount due instead of the regular payment amount. Select O – Other Event from the Frequency drop-down list. The O – Other Event option instructs Portico to advance the Post Date field to the next scheduled loan payment date according to the frequency on the loan when the loan becomes current.

All successful and unsuccessful transfers will be reported on the existing Transfer File Register Report 434.

Loan Coupons

Loan coupons are not automatically generated if loan payments are made through Transfer File. If you require loan coupons on a loan, which has a Transfer File payment, click Order Coupons on the Loans – General tab. This process may be necessary if a partial loan payment is being made by one family member through Transfer File, but the remainder of the loan payment is the responsibility of another family member.

Credit Card Payments

For credit card payments, an amount may be specified in the Amount/Target Balance field or the Transfer Type field can be P- Scheduled Loan Payment. Transfer File reads the Transactions – Vendor Credit Card, Mortgage & Education Payments tab for the minimum payment amount. The Acct Type/Acct ID field on the Member Transfer File Information dialog box must specify K - Credit Card and the note number plus the loan type to which the payment is being applied. For example, if the credit card note is 1234 and the loan type is CC:

If the Acct Type/Acct ID field is K - Credit Card and the Transfer Type field can be P- Scheduled Loan Payment on the Member Transfer File Information dialog box, the payment amount on the Transactions – Vendor Credit Card, Mortgage & Education Payments tab will be used as the transfer amount, regardless if the amount is zero. If the Transfer Type field is blank, the Amount/Target Balance field on the Member Transfer File Information dialog box will be used as the transfer amount.

Safe Deposit Box Fees (Or Other Fees)

For safe deposit box or other fees, type the fee amount in the Amount/Target Balance field on the Member Transfer File Information dialog box. Set the Acct Type/Acct ID field to G - General Ledger, then type the six-digit general ledger account used for the fees. Type the two-digit history code for the statement message in the G/L Message Code field on the Member Transfer File Information dialog box.

Loan Payoff Transfers

Daily, weekly, or bi-weekly frequencies are recommended to pay off the loan as soon as possible. Set the Transfer Type field on the Member Transfer File Information dialog box to O - Loan Payoff. The system calculates the loan payoff amount. Set the Acct Type/Acct ID field to L - Loan followed by the note number. The payoff option does not apply to FICS mortgage payments or credit card payments. Example: Paying off the balance of an overdraft line of credit loan as soon as funds are available.

Sweep Processing Transfers

Sweep processing lets members move excess funds from a transaction account, such as a share draft account, to an interest-bearing share account, while still maintaining a target minimum balance in the transaction account. This lets your credit union lower their reserve requirements on transaction accounts while helping members realize improved earnings on idle funds. Use the following options on the Member Transfer File Information dialog box to set up automatic sweep processing transfer(s):

  • The Frequency field must be D-Daily for sweep transfers.
  • Set the sweep processing transfer as the last priority in the Priority field, and the Max Attempts field to 1.
  • Set the Transfer Type field to S - Sweep Excess Funds and enter the target minimum balance in the Amount/Target Balance field. The amount in the Amount/Target Balance field must be greater than 0.00. The system calculates if there is an amount in excess of the target balance, and a one-way sweep of funds is performed daily when the transaction account has a balance in excess of the target amount. The system will consider check hold amounts and minimum balance requirements when calculating the target balance.
  • Enter the interest-bearing share account information in the Acct Type/Acct ID field. The interest-bearing account must be for the same member number.

Disbursements

Several types of disbursements can be made, including but not limited to Club Account Disbursements and Share Draft Account Disbursements.

Club Account Disbursements

On the Member Transfer File Information dialog box, specify the club share type in the Account Type/ID field, select the frequency, select the end date (should equal the transfer date if it is a one time disbursement), set the Transfer Type field to A - All Available Funds and the system disburses all available funds in the share account. The funds may be transferred to a share or certificate on the same member number or a cross account, or may be disbursed by check. The funds may not be transferred to a loan, FICS mortgage, or a credit card.

Share Draft Account Disbursements

Specify one share draft account in the Account Type/ID field on the Member Transfer File Information dialog box. If overdraft protection is set up for the individual share draft account, then select the Overdraft check box. If the transfer funds are not available in the share draft account, then the system processes an overdraft transfer into the share draft account and then processes the transfer from the share draft account. Transfer File will expire a transfer on a closed share type with a closed date. The closed share type cannot be expired with only a 9 hold. The To side includes all options, shares, certificates, general ledger account, check, FICS mortgage payment, loan payment and credit card payment.

Certificate Disbursements

Specify one certificate in the Account Type/ID field on the Member Transfer File Information dialog box. When searching through certificates, Portico will bring the balance of the certificate to $1.00 and then go to the next certificate. Portico will not bring any certificate balance to zero or perform any certificate surrenders. The To side includes all options, shares, certificates, general ledger account, check, FICS mortgage payment, loan payment and credit card payment.

Recurring IRA Distributions

You can use the Selection Type/Method drop-down lists or the Account Type/ID field to determine which IRA account(s) the funds will be transferred from. The IRA W/D Code field must specify the IRA distribution code associated with the IRA withdrawal. To calculate and collect IRA federal or state withholding, select the Federal W/H and/or State W/H check boxes. IRA distributions may be transferred to shares and certificates on the same account, to a cross account, or to a general ledger account, or may be disbursed by check.

The Member Transfer File Information dialog box overrides what is specified on the IRA Profile dialog box. If the Federal W/H and/or State W/H check boxes are selected on the Member Transfer File Information dialog box, the system will use the percentage value from the IRA Profile dialog box. If there is no percentage value on the IRA Profile dialog box, then the system will default to the percentage value in the State Withholding field in the IRA section on the Credit Union Profile - Shares tab. If there is no value specified in the State Withholding field, an online error message will result. The default for federal withholding is 10%.

IRA distributions are not allowed to be transferred to a loan, FICS mortgage loan, or a credit card.

When determining withholding amounts for a transfer and for any other process that calculates withholding, the amounts in the Federal Withholding Flat Amount and the State Withholding Flat Amount fields on the IRA Profile dialog box will be used. If these amount fields have a value greater than zero, this will be the amount of Federal and/or State Withholding. If these amount fields are zero, the withholding amounts will be derived using the percent fields.

Transfer File ACH Distributions

Using Transfer File for ACH distributions, the incoming ACH file is matched against a Member Transfer File Information dialog box using the COID (Company ID), OFI (Originating Financial Institution), and/or Company Name, eliminating the need to associate a payroll number with an ACH table. Using Transfer File for ACH payroll distributions provides several additional benefits:

  • You can use the new ACH Deposit Excess transfer type to instruct Portico to look at the original ACH deposit amount less any distributions for the post date, then transfer the remaining or excess funds of the ACH deposit to the designated account. Note: This process would occur before regular Sweep Processing.
  • For new ACH payrolls, your credit union will no longer need to contact Customer Service to set up an ACH table specific to the payroll.

If a deposit is currently reported on the payroll reports, the payroll number must be deleted from the ACH table in order to schedule distributions via Transfer File. Contact Portico Customer Service to change your ACH table. Important: Do NOT delete the member’s Member Payroll Maintenance dialog box until the payroll number has been removed from the ACH table.

To set up Transfer File ACH Distributions:

  1. Select C-ACH Scheduled from the Frequency drop-down list. When you select C-ACH Scheduled, the ACH-specific fields will appear. The Priority field is system-assigned to automatically insert the ACH transfer before any non-ACH transfers.
  2. Select X-ACH Deposit Excess from the Transfer Type drop-down list.
  3. From the ACH Deposit Account drop-down list, select the account that the ACH deposit should be distributed from.
  4. In the Minimum ACH Deposit field, enter the required deposit amount before allowing distributions to occur.
  5. In the Originating Financial Institution (OFI) field, enter the 8 digit routing and transit number of the Originating Financial Institution.
  6. In the Company ID (COID) field, enter the 9 digit company identification number from the originator.
  7. In the Company Name field, enter the company name of the originator in mixed case. Portico can match Transfer File ACH Distribution items with company names that use both upper and lower case letters.
  8. To ensure that the ACH file is matched against the COID (Company ID), OFI (Originating Financial Institution), and/or Company Name, refer to the following examples when setting up the Transfer File ACH distributions:
    • OFI <specific>
      COID <specific>
      Company Name
    • OFI <specific>
      COID <specific>
      NO company name will match and post correctly.
    • OFI must be blank (Zeroes will appear when you click Save.)
      COID must be blank
      Company Name

All successful and unsuccessful ACH transfers will appear on the Transfer File Register Report 434.

ACH Online Posting

You can take advantage of ACH Online Posting by moving ACH payrolls to Transfer File. Transfer File check disbursements are processed using the current automatic withdrawal by check process. In addition, Transfer File was designed to handle transfers assigned to a member’s ACH payroll. The post date and effective date fields on the Member Transfer File Information dialog box determine when a transfer will take place. If the post date and effective date are equal, the transfer will occur in the first pass or P.M. pass of the back-office cycle. If the effective date is one day after the post date, the transfer will occur in the second pass or A.M. pass of the cycle.

Transfer File is not completely tied to the ACH payroll deposit. If the member is paid semi-monthly on the 15th and month-end, and the 15th falls on a Sunday, the member’s ACH credit will be effective-dated Friday, the 13th . The funds will be available to the member on the 13th , but the transfer will not occur until the night of the 14th with an effective date of the 15th . If ACH is associated with a payroll number, the distributions occur when the deposit is received. If the member is not paid, the distributions do not occur. Transfer File will attempt to process the transfers on the specified date regardless if funds are deposited.

Caution: Distribution errors or double postings may occur if not set up properly. Please request assistance before setting up ACH associated payrolls in Transfer File.

ACH Payroll Setup
To switch an ACH associated payroll to Transfer File and take advantage of ACH Online Posting, complete the following process:

  1. Once Transfer File is turned on for your credit union, start setting up members on Transfer File instead of associated payroll numbers.
  2. Identify the companies that are consistently late with their ACH transmissions using the ACH Summary Report 178.
  3. After a company has been identified, find the batch in the ACH Payroll Backup Detail Report 172. This report will provide the list of members that are included in the batch. It also provides the original ACH tran code to be used to verify that the ACH deposit share type is the same that was in the member’s excess share type on the Member Payroll Maintenance dialog box. For example, if the ACH tran code is a deposit to a regular share account and the excess share type is share draft, the distributions cannot be set up to withdraw the funds from the draft account if the funds are not being deposited there.
  4. Determine when Transfer File maintenance will be completed and when the next payroll date is. The Member Transfer File Information dialog box should be set up with the next payroll date in mind. All of the members involved should have the same post date on the Member Transfer File Information dialog box. Once a date has been chosen, the Transfer File maintenance must be completed prior to that date to prevent distributions from posting twice – once from the Member Payroll Maintenance dialog box and once from the Member Transfer File Information dialog box,...or....The Member Transfer File Information dialog box can be set up for the next payroll posting and the Member Payroll Maintenance dialog box deleted immediately. The system will automatically rebuild the Member Payroll Maintenance dialog box (as long as the payroll number is in the table) with the excess share type matching the ACH tran code. This allows transfers to be set up without having a specific deadline. Remember, ACH Online Posting cannot be completed as long as a payroll number is in the corresponding ACH table.
  5. When the Member Transfer File Information dialog box is set up, the ACH table must be adjusted. If an ACH table exists for the OFI and Company ID, remove the payroll number from the table. If the company processed through the ACH default table, a new table must be added for the specific OFI and Company ID. This company will now process through a table that does not contain a payroll number, which will stop the distributions on the Member Payroll Maintenance dialog box from occurring.
  6. Once the Member Payroll Maintenance dialog boxes are no longer being used, they can be deleted manually or stay on the system until the payroll purge criteria is met.