Working Share Draft Exceptions

Screen ID: 

Screen Title: 

Panel Number:

UNDET-01

Update Exceptions/Returns

2560

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Access this screen by selecting Tool #986: CHECKS 1: Work Member Check/Draft Exception File.

Check out the video related to this topic: Correcting Invalid Account Numbers (More videos below!)

Helpful Resources

Learn how to mark a draft exception to be deleted.

Learn how to update a share draft exception.

Procedures for Working Daily Exceptions

Share Draft Stop Payments

Screen Overview

This screen lists all exception items from the previous night's share draft transmission. Included will be items that could not clear a member's account for various reasons, including non-sufficient funds, frozen accounts, invalid or closed accounts, etc. Items that were stopped (or “suspected” as stop pay items) will be listed as well.

  • Refer to the share draft exception report (TNDDT3) for a notation of whether the item was considered a stop pay “hit” or simply a “suspect” item that you will need to research further. These items can be force-paid using status code G.

This screen is used to indicate how you would like each of the exception items to be handled, using the Status and Code fields. Once this list has been reviewed and updated, the Re-Post Exception File Detail feature can be used to attempt to post these items to the member accounts again.

Items on this screen can be modified as needed until Post NSF Fees has been used to post fees to member accounts.

Sorting and Locating Records

The Toggle Sort Order button in the upper-right corner of the screen will toggle between two choices:

  • Sort By Return Code - In this sort order, a Position to Code field will appear at the top of the screen. Enter a Return code and press Enter to scroll to that group of records. For example, you could position to code 35 to start working all your invalid account exceptions.

  • Sort By Account # - In this sort order, a Position to Account # field will appear at the top of the screen. Enter an account number and press Enter to scroll quickly to the first item that matches.

If you position to a code or account number and want to return to the entire list again, clear the code or account number and press F5-Refresh.

Working Exceptions

SEE ALSO: Recognizing a Fraudulent Check

To work a group of items (such as your code 35 “invalid account” items):

  1. Enter 35 (or whatever code you wish to work) into the Position to Code field and press Enter to scroll to those items.

  2. Click and drag across as many items as you wish to work in a batch. Press Page Down if needed to display additional items (the items you selected will remain highlighted) and click and drag across additional items as needed.

    • HINT: You can also click on the first item, use Page Down to display the last item, then hold Shift and click to select all items in between. Or, hold the Ctrl key when you click to select individual items here and there rather than an entire continuous group.

  3. Click the Maintenance option (or press F14). The Maintenance screen will appear for the first item you selected.

  4. Make the necessary changes, pressing Update (F5) when done (or you can use Bypass (F8) to skip over an item). The next selected item will appear automatically.

  5. When all selected items have been completed, you will be returned to the exceptions screen.

Depending on your credit union policies, you may wish to research individual accounts to allow the draft to post, such as performing a transfer or force-posting the draft to a negative balance.

  • If an item should be force-paid or fees waived, enter the appropriate code into the Status column on this screen, pressing Enter to save. Valid Status codes are listed at the bottom of the screen.

  • If an account transfer is needed to cover a draft, use Journal Transfer (F13) to post a manual transfer.

  • If your credit union uses ANR (Courtesy Pay), you can adjust a member's negative balance limit by selecting the name in the list and clicking the Change Negative Balance option.

  • If a transaction is a 35 (invalid account), be sure to correct the account number first.  Then if needed use the repost feature to charge the NSF fee.  DO NOT force post a 35; in this case the transaction will not be run through processing correctly (for example, though NSF processing).

When done, be sure to use Enter to save any changes to status codes before exiting the exceptions screen. Then proceed to Tool 712: CHECKS2: Re-Post Exception File Detail.

Working Suspect Duplicate Items - Code 30

If you activate “suspect duplicate detection” for incoming share drafts in CU*BASE on the Check Processing configuration, any matches CU*BASE finds appear on this screen with a code of 30, which indicates that the draft is a “duplicate exception.” To be considered suspect duplicates, checks must match all of the following: check number, amount, and account number.

If you verify that this check is not a duplicate, remove the hold status placed on the entry (H) and change it to active (A).  That way the check will run through standard processing, including NSF processing. 

If you verify that this is a duplicate, contact your item processor for procedures for processing the duplicate item.  You must handle this item manually.   Automated return processing is not programmed to handle duplicate items because of requirements that these items be handled differently than normal returned items

  • As a rule of thumb, any item determined to be a true duplicate must be deleted from the Exception screen (which deletes from the exception file).   This deletion also requires that you make a manual G/L entry to record the adjustment and balance your exceptions. Failure to follow these manual steps will cause your G/L to be out of balance.

If your item processor does not handle suspect duplicates, and you wish to configure CU*BASE to handle suspect duplicates, refer to the Share Draft/Check Processing Configuration screen.

Field Descriptions

Field Name

Description

Status

This column represents the current status of each item in the exception list. When the file is first viewed, all new items will show a status of “A” for Active.

This is also the column used to indicate how the system should handle each item when the Re-Post Exception File Detail feature is taken. For example, depending on credit union policy, you may elect to force pay specific items or waive fees.

  • Click here for a description of all available status codes.

Code

The code in this field provides a reason for the exception. Changes can be made to this field if necessary, such as if an item is marked “invalid” but really represents a closed account and you want to make sure that is noted when the item is returned. Valid codes are listed below:

Return Items

31 Insufficient Funds

32 Uncollected Funds

33 Frozen Account *

34 Payment Stopped *

35 Invalid Account *

36 Closed Account *

37 Invalid Encoding *

38 Refer to Maker *

*Items with this code are NOT subject to NSF or non-return fees.

Stop Payment

51 Add Stop Pay

Microfilm Request

60 Draft Request

  • IMPORTANT: Depending on your item processor, some of these codes may not be allowed. Be sure to check with your item processor for confirmation of accepted codes.

Trace No.
or
 Account No.

This column can list either the member's account number, or the trace number on the check/draft. Click the button above this column or press F2 to alternate between the two display options.

  • A Trace Number is simply a unique numeric code assigned by your item processor to each individual check/draft, and is used for inquiries about a specific item.

Name

The member's name.

Amount

The amount of the check/draft.

Curr Bal
or
 Avail Bal

This column can list either the actual current balance on the member's account, or the current available balance. Click the button above this column or use F11 to alternate between the two display options. The system automatically updates these figures each time the exception file is viewed.

These figures may be lower or higher than the amount of the check/draft, depending on the reason for the exception. (For example, the account balance might be frozen, or there may be a stop payment order for that draft.) View the Available Balance to see the amount which is currently available in the member's account, to help determine what should be done with a specific item.

  • IMPORTANT: Sometimes multiple drafts will be listed for a single member. Remember to add all drafts for a member when determining whether or not items can be re-posted.

Draft
or
 No. NSF

This column can list either the check/draft number, as taken from the MICR line at the bottom of the check/draft, or the total number of NSF transactions for this account over the past 12 months (current month plus 11 prior months). Click the button at the top of this column or use F10 to alternate between the two display options.

Options

Buttons

Description

Inquiry (F12)

Use this to access the Member Inquiry system, to view information about a member's current accounts.

Maintenance

Select any item in the list and use F14 to modify information about the exception record.

Change Neg Balance Limit

Use this to modify or lock this member's Negative Balance Limit to control posting of additional items by the Automated Non-Returns system.

  • You can also use this to view the dates when this member was activated and/or deactivated through the ANR automated scoring system.

Buttons

Buttons

Description

Show Account/Show Trace # (F2)

Use this to toggle between showing the trace number and the account number in the list.

Change Sort Order (F4)

Clicking this button will toggle the filter at the top of the screen between "Jump to code" and "Jump to account #."

Refresh (F5)

Use this to return the display to the first item in the list and refresh all account balance data. If you have used either of the Position to fields to scroll the list, after you clear the field use F5-Refresh to display the full list of items.

Add (F6)

Use this to add an additional exception item to the list.

  •  This is used rarely, but can be helpful if you become aware of a check which should be included in this file and would like to process it manually.

Up arrow (F7)

Use this to return to the Home Page.

Show # NSF/Show Draft (F10)

Use this to toggle between showing the draft/check # and the number of NSFs in the list.

Show Available Balance/Show Current (F11)

Use this to toggle between showing the current balance and available balance in the list.

Journal Transfer (F13)

This will display the “Member Account Transfer” screen, used for making transfers from one account to another.

Additional Video Resources

View more share draft-processing videos.

Visit the CU*BASE video library to view more videos!