Dividend payment bounce backs - auto processing – Exalt

The following example follows the automated payment bounce back process built in with banking integration.

If a dividend payment (uploaded to a bank using banking integration) cannot be processed by the receiving bank then a credit will be returned to your bank. Where the bank feed is enabled, the software will automatically process the returned funds against the original payment.

Creditor reference

A creditor (or investor) is given a "Creditor reference".

Note:

When importing creditors from a spreadsheet you may import the creditor reference value.

Dividend payments

When a dividend is paid, the creditor reference is populated into the "Payee Ref" field.

File upload

The creditor reference is contained in the upload file for each transaction line, regardless of whether you upload a single transaction or multiple transactions in a file.

Bounce back statement

If a payment is rejected, funds are returned and the creditor reference shows on the bank statement as a reversal. This is called a "bounce back".

A bounce back may occur if the receiving account is closed or the account number is invalid. The reference appearing on the bank statement allows you to match the reversal with the original payment.

Negative payment auto processed

The reversal transaction (and creditor reference) is contained in the daily bank statement data synchronised with the software. The software automatically processes the reversal by creating a reversing entry.

An automatically created negative payment is displayed below:

Note

The Reference of the reversed entry will be marked RED in the account register.

Dividend reversal

Additionally, the bounce back reversal appears in the creditor dividend history and the system updates the "Amount distributed" to reflect the reversal.

From here you can update the Bank account details and reprocess the distribution to the bounced creditor.

If the distribution is an Unclaimed Dividend

If the funds need to be sent to Unclaimed Dividends you may need to:

Reprocess the distribution to the bounced creditor (without uploading the transaction to the bank).
After posting the distribution you can mark the payment as 'Mark Dividend as Unclaimed'

The transaction will now appear as unclaimed:

Amount Distributed

The creditor record is updated to show a zero Amount Distributed, reflecting the reversal.