Question

Cancel a Parked Payment

  • 23 November 2023
  • 4 replies
  • 155 views
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I am working on a solution for Customer Direct Debit Rejections.

 

We are creating a Direct Debit proposal which creates a Payment Order which then submits the file to the Bank. We also have to “acknowledge and create payment” as the bank treats the DD request as payment into the bank account, so that we can reconcile the bank with the cash transactions.

On day 3, the bank sends us a list of rejected payment requests and treats these as a payment back out of the bank account.

So I see two options,

A Partial Rollback of the payment, just for the invoices that were rejected, where IFS moves the invoice back onto the customer ledger however it creates a Parked Payment for the cash transaction, which cannot be cancelled.

A Full Rollback of the Payment which doesnt move it back to the Customer Payment Order stage, and will put all of the invoices back onto ledger even though they are paid, IFS then seems to expect we would reprocess the Direct Debit proposal which would want to make all the requests to bank again…

 

I have also considered using the Payment Status update and holding the Payment Order until the rejections come through, however this means I can’t reconcile the bank with the cash transactions.

 

Any help on this would be greatly appreciated as the Parked Payment functionality doesnt seem to account for error or reversal requirements.

4 replies

P
Rank

Hello,
In my opinion the DD request should not be treated as payment in the Application because
it can be rejected. A Payment Order can be acknowledged after the bank confirmed the payment and we can create payment
than for the DD request. In that case no Parked Payment is needed for that process.
Best Regards,
Pawel Dworzynski
 

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Hi Pawel,

Although I agree, unfortunately the bank posts the transaction on the bank statement at creation of the Payment Order, so if the Payment Order isn’t acknowledged and posting created, then the Bank Statement won’t reconcile with the IFS Cash Transactions. 

The bank treats the rejections as payments back out of the account, so I would need to replicate this in IFS.

Thanks,

Matt

P
Rank

Hi again,
So when the bank treats the rejections as payments back , you can do this in two ways.
The first is you can cancel the whole Bank statement with an invoice paid by Direct Debit process.
Next you can copy new statement from a cancalled one and remove that invoice which has been rejected from the payment.
The second one is to cancel only payment for that invoice. In that case a Parked Payment is created. It cannot be cancelled,
it should be used in the next bank statement and matched with the "payments back" transaction which the bank
reports as payments back out of the account.
Best Regards,
Pawel Dworzynski
 

A
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Userlevel 7
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Hello, 
If full rollback of payment does not recreate payment order, it is indeed difficult to deal with rejected payments.
I suspect operation Paweł is referring to (copy statement from cancelled one) is available in Mixed Payment. In Mixed Payment you have an option of “Acknowledge Payment Order” transaction, but I have never tested how Copy Cancelled Mixed Payment option works for such transactions. If it converts them to customer payments, fine.

But anyway, rolling back full payment is kind of dangerous, as it make possible to register another payment agaist invocie already paid. Partial rollback seems much better option. 
As system creates parked payment as a result, you should register opposite parked payment (using customer payment or mixed payment function) to reconcile your bank account with bank statement, and then offset positive and negative parked payments using customer offset. I am not sure, if it possible to close parked payment in customer payment window directly.
 

Regards, Adam

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