Daily ACH Activity Summary
(Online Credit Unions)
For online credit unions, much of the daily ACH process is handled automatically by CU*Answers. However, there are certain steps that must be handled by a credit union employee, including handling exception items and maintaining the CU*BASE ACH database records.
Helpful Resources
Using Smart Operator to Verify Daily ACH Transmissions
When are ACH debits and credits posted?
Overview
As you will see, the process is complex, and the timing of various automated processes is key to understanding when and how both member and G/L transactions are posted.
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Early each morning, CU*Answers receives transactions via ACH and places the transactions into a warehouse file for the credit union. The warehouse file (also called the “suspense” file) stores the transactions until they are ready to be posted to member accounts. This file may contain items which have an effective post date in the future, and thus cannot be posted until a later date.
During this process, the system compares the data in the incoming file to the records stored in the CU*BASE ACH master file. In order for an item to post, it must be set up in this database, to provide exact account information and distributions. When matching records are not found, the system will create new company and/or distribution records in the ACH master file. In addition, a transmission edit command is run to check the file for potential errors.
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NOTE: This cross-referencing process may be customized for your credit union, depending on your account numbering structures. Contact a CU*BASE representative if you are receiving an unusual amount of errors that might require adjustments to the cross-reference programs.
Five reports are generated during this process:
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Automated Clearing Transactions (“Trial Balance”) - PACXTB
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ACH Origination Returns and Notice of Changes - PACHD2
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ACH New Companies and Individual Accounts - PACHD3
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ACH Suspense Update Exception Report / ACH Settlement Report - PACHD
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ACH Suspense File Exception Report - PACHSU
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Three times each day, CU*Answers runs an “Extract/Post” option to post transactions to member accounts. Credits to member accounts are posted in the morning (usually before 7:00 a.m. ET). Same-day credits are posted in the afternoon posting at 4 PM ET. Debits are posted in the evening post, (by 8 PM local time).
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During the “Extract” portion of this process, the system pulls records (either debits or credits) from the warehouse file that have an effective post date on or before the current date, and creates a posting work file showing all of the transactions that will be posted. Four reports are generated as part of creating this work file:
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ACH Preauthorized Return Item Register (PXACH3)
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ACH General Ledger Payable Posting Register (PXACH2)
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ACH Posting Work File Creation Register (PXACH1)
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ACH Posting Work File Creation Exception Report (PXACH)
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During the “Post” portion of this process, the system posts the items in the work file to member accounts, deleting the item from the work file as it is posted. (If the process is interrupted for any reason, the work file will still retain all items that have not been posted.) Five reports are generated as part of posting the work file:
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ACH Processing Transaction Register - Posting (TACHD1)
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ACH Processing Transaction Register - Recap (TACHD2)
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ACH Paid Up Loan Account Register - Posting (TACHD3)
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ACH Processing Transaction Register - Errors (TACHD4)
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NSF ACH Entry Transaction Register (TACHD5)
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Any transactions that cannot be posted (due to insufficient funds, incorrect account information, etc.), will be posted to the ACH Suspense/Exceptions general ledger account (870-11).
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NOTE: Self-processing credit unions may use a similar schedule for posting; however, because they are responsible for receiving and warehousing the ACH transmission, they may choose to edit the warehouse file directly before posting, resulting in fewer exceptions.
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Once the posting has occurred, the credit union must handle any exception items using the Work ACH Daily Exceptions system. Items are either returned or posted manually to a member account (via an Account Adjustment or using the Direct/Mail Posting feature), offsetting the 870-11 G/L suspense account. There are three key reports used when handling these exceptions:
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ACH Posting Work File Creation Exception Report (PXACH)
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ACH Processing Transaction Register - Errors (TACHD4)
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NSF ACH Entry Transaction Register (TACHD5)
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The credit union is responsible for verifying and moving the Settlement figures from the ACH settlement account to a bank or Central CU account.
Related Topics
Understanding ACH - Overview and Terminology
ACH Exception Handling: Overview
Understanding ACH Suspense Accounting