Collapse All Expand All

 The Transaction Codes page in System Management (System Management > Recovery > Transaction Codes) enables administrators to define and manage the transaction codes available in theRecovery module. Transactions are used to track funds and change the balance of GL accounts. Transaction Codes are assigned to transactions to categorize transaction types, determine the GLs that the transaction applies to, and determine the account allocations when transactions are posted.

The Transaction Codes page contains a read-only grid that displays the following information for each existing Transaction Code:

Column	Description
Active	Displays a  to indicate that the transaction code is currently active.
Locked	Displays a  to indicate that the transaction code has transactions posted to it. If the Locked flag is enabled, modifications cannot be made to the transaction code. For more information on this attribute, please see the Transaction Code Locking section of this topic.
Transaction Code	Displays the transaction code value defined during creation.
Name	Displays the name of the transaction code.
Category	Displays the category of the transaction code.
Priority	Displays Order or Percent to identify the priority type assigned to the transaction code.
Posting Type	Displays Credit or Debit to identify the posting type assigned to the transaction code.
Date Created	Displays the date the transaction code was created.
Modified Date	Displays the date the transaction code was last modified.
Modified By	Displays the name of the user who made the most recent modification.
Created By	Displays the name of the user who created the transaction code.

This topic contains the following information about Transaction Codes:

• Transaction Code Attributes
  • General
  • Posting Rules
  • Security
• Creating a Transaction Code
• Copying a Transaction Code
• Editing a Transaction Code
• Deleting a Transaction Code
• Transaction Code Locking

Transaction Code Attributes

All transaction codes share common attributes that are defined when creating, copying, or editing a transaction code.

General

General attributes are defined on the General tab. These attributes provide basic information about the transaction code.

The following general transaction code attributes are defined within the General tab:

Attribute	Description
Transaction Code	Enter a unique Transaction Code. The Transaction Code field accepts alphanumeric characters.
Name	Enter a name for the Transaction Code. Only the Transaction Code must be unique. Multiple Transaction Codes may have the same name.
Category	Select the Transaction Code category from the drop-down. Categories are pre-defined and are assigned to categorize and sort transaction codes, as well as to determine the algorithm used to process the transaction. Additionally, transaction code categories may be used for security purposes to determine which personnel can apply certain transactions such as adjustments, reversals or debt forgiveness. Transaction Categories The following transaction categories are available: Category Description Adjustment The Adjustment transaction code category is used for transactions that adjust the GL account balance when the balance has been incorrectly booked. This category posts recovery account, repayment plan, and judgement ledger entries. Expense The Expense transaction code category is used for transactions that effect expense GL accounts. This category only posts entries to the recovery account ledger. Expense GL accounts are effected when GL accounts in the transaction code's Posting Rules tab are sub-accounts of Reimbursable or Non-Reimbursable Expense accounts. Forgiveness The Forgiveness transaction code category is used for transactions that forgive debt, expenses or interest that has been charged off. This category posts entries to recovery account, repayment plan, and judgement ledgers. Initial Balance The Initial Balance transaction code category is used for transactions made when a collection account is charged off or when a repayment plan or garnishment is initiated. This category posts entries to recovery account, repayment plan, and judgement ledgers. Interest The Interest transaction code category is used for transactions made at the end of the interest calculation and accrual process. This category posts entries to recovery account, repayment plan, and judgement ledgers. Other Cost/Fee The Other Cost/Fee transaction code category is used for transactions that affect institution-defined GL accounts that do not fall into any other transaction category. This category only posts entries to the recovery account ledger. Other Cost/Fee GL accounts are effected when GL accounts in the transaction code's Posting Rules tab are sub-accounts of Reimbursable or Non-Reimbursable Other accounts. Payment/Recovery The Payment/Recovery transaction code category is used for transactions made to pay off the amount in the recovery account either directly or through a repayment plan. This category posts entries to recovery account, repayment plan, and judgement ledgers.
Posting Type	Select the posting type of the Transaction Code. The posting type identifies how a transaction using this code affects the GL Accounts in the Posting Rules tab. The following Posting Types are available for selection: Posting Type Description Credit A Credit posting type decreases the values of the GL Accounts in the Posting Rules tab and increases the corresponding GL Offset Accounts when a transaction is posted. Debit A Debit posting type increases the values of the GL Accounts in the Posting Rules tab and decreases the corresponding GL Offset Accounts when a transaction is posted.
Payment Rule	Select whether a Repayment Plan's Payments update when an incoming transaction with a category of Expense or Other Cost/Fee posts. This parameter is conditionally available. It is only available if the transaction Category is Expense or Other Cost/Fee and the Posting Type is Debit. The Payment Rules available for this parameter populate from the TRANSACTION_CODE_PAYMENT_RULE field lookup and include the following options: Payment Rule Description None The transaction does not update a Repayment Plan's payments. Apply the Debit to the Next Scheduled Payment The transaction applies the debit to a Repayment Plan's next scheduled payment.
Active	Select this check box to activate the Transaction Code.
Locked	Displays a (disabled check box) to indicate that the transaction code has transactions posted to it. This field is read-only. For more information on this attribute, please see the Transaction Code Locking section of this topic.
Order or Percent	Select the Order or Percent radio button to determine the style of the Posting Rules. By default, Percent is selected. Field Description Order When selected, the Value column in the Posting Rules tab is read-only and automatically populates the numerical order of the posting rules. The order can be changed by selecting an account and dragging it to the desired order in the grid. If the transaction amount is greater than the balance in a GL account, the remaining amount cascades to the next GL in the order. If the transaction Category is set to Initial Balance, Adjustment, or Forgiveness, Order is selected and cannot be edited. Percent When selected, the Value column in the Posting Rules tab is editable. Double-clicking in a Value field allows an administrator to configure the transaction allocation percentage for the corresponding GL Account. The percentages entered must have a sum of 100 or an error is received when saving the Transaction Code.
Expense Category	Select the Expense Code category from the drop-down that identifies the category of the Collection Expense being added. This parameter is conditionally available. It is only available if the transaction Category is Expense or Other Cost/Fee. The values within this drop-down list displays the Expense Category Descriptions from tblExpenseType. If the Expense Category is None, no Collection Expense is generated for transactions processed under this transaction code.  This code is not available in the Expense – Account screen, and is only available on this screen. If the Expense Category is assigned, the Batch and Manual transaction processes execute accordingly: Batch Transaction Import The Batch Transaction Import checks the value set in the Transaction Creates Expense parameter. If the parameter is set to No, expense records are only created in the Recovery module. If the parameter is set to Yes, the Batch Transaction Import process checks the Transaction Code assigned to the Fee Transaction Code. If the Transaction Code has an Expense Category and Expense Type assigned, the following steps occur, after the import: The Expense Amount is set based on the Account > Recovery > Fee Percentage field. The Expense Amount displays as the Paid Amount. The Expense Amount displays a zero balance in Unpaid Amount. The Is Transferred field is set to True. If the Transaction Code does not have an Expense Category and Expense Type assigned, expense records are only created in the Recovery module. Manual Transaction When a transaction is applied, the system checks the Transaction Creates Expense parameter. If the parameter is set to No, expense records are only created in the Recovery module. If the parameter is set to Yes, the system checks the Transaction Code assigned to the Fee Transaction Code, while processing the transaction. If the Transaction Code has an Expense Category and Expense Type assigned, a collection expense record is created with the following information: The Expense Category field on the expense record is set to the Expense Category assigned to the Transaction Code. The Expense Type field on the expense record is set to the Expense Type assigned to the Transaction Code. If the Expense Type assigned to the Transaction Code is blank, this field is set to None on the expense that was created. The Expense Amount is set based on the Account > Recovery > Fee Percentage field. The Expense Amount displays as the Paid Amount. The Expense Amount displays a zero balance in Unpaid Amount. The Is Transferred field is set to True. If the Transaction Code does not have an Expense Category and Expense Type assigned, expenses records are only created in the Recovery module.
Expense Type	Select the Expense Code category from the drop-down that identifies the type of the Collection Expense being added. This parameter is conditionally available. It is only available if the transaction Category is Expense or Other Cost/Fee. Additionally, this field is disabled when Expense Category has a value of NA. The values within this drop-down list displays the Descriptions from the COLL_EXPENSE_TYPE lookup.

Posting Rules

Posting Rule attributes determine the GL account allocations for a transaction code. When the transaction code is assigned to a transaction, the funds are distributed to the GL accounts defined in this tab. The Posting Rules attribute contains a dynamic grid that enables administrators to define the GL accounts associated to a transaction code.

The Posting Rules grid includes the following information:

Column	Description
GL Account Name	A read-only field that displays the name of the GL account included in the transaction code.
GL Account Number	A read-only field that displays the number of the GL account included in the transaction code.
Value	Define the amount of the transaction being allocated to the GL account. The Order and % radio buttons on the General tab determine if the Value field is read-only or editable. If Order is selected, GL accounts can be dragged and dropped into the desired order. If % is selected, an integer value between 0-100 must be entered in the Value field. Switching between Order and % value types on the General tab clears the existing amounts in the Value column.

The following buttons in the Posting Rules toolbar provides the ability to manage the GL accounts in the Posting Rules grid as well as determine the type of allocation:

Action	Description
	Clicking Create displays a GL Account list that allows an administrator to add an account to the Posting Rules. Only one posting rule can be created for transaction codes with a category of Initial Balance, Adjustment, or Forgiveness. If Reimbursable Expense, Reimbursable Other, Non-Reimbursable Expense, or Non-Reimbursable Other is selected from the GL Account list and the Include Non-Reimbursable In Balance solution parameter in System Management > Modules > Recovery is set to Yes, a message is displayed upon saving the transaction code to indicate that fees and expenses are not included in scheduled payments, but are applied to final payments. If Reimbursable Expense or Reimbursable Other is selected from the GL Account list and the Include Non-Reimbursable In Balance solution parameter is set to No, a message is displayed upon saving the transaction code to indicate that fees and expenses are not included in scheduled payments, but are applied to final payments.
	Selecting an account from the screen and clicking Edit displays the GL Account list allowing an administrator to change the GL Account that is in the Posting Rules grid.
	Selecting an account from the screen and clicking Delete allows an administrator to remove the GL Account from the transaction code allocations.

Security

Security attributes allow administrators to control which users and groups can create transactions using this transaction code. If a user does not have access to the transaction code, the code is not available in the Transaction Code drop-down of the transaction window.

The following Security attributes are defined within the Security Tab:

Attribute	Description
Available	Displays a list of all Users configured in System Management > Users and all Security Groups created in System Management > Groups > Security Groups. Assign access to the transaction code by selecting the desired user(s) and group(s) from the list and moving the name(s) to the Assigned Users/Groups boxes using the arrows that display.
Assigned	Displays a list of the Users and Groups assigned access to the transaction code. Once the transaction code is activated and saved, it is accessible to the assigned Users and Groups when booking a transaction.

Creating a Transaction Code

The Create function enables administrators to create new transaction codes. To create a new transaction code, click .

The Transaction Code Editor screen appears. Navigate through the General, Posting Rules, and Security tabs to enter the attributes.

When finished entering all of the information, click  to save the new transaction code and return to the Transaction Codes page. The new Transaction Code populates in the grid and can be used by users with the appropriate permissions. 

Copying a Transaction Code

The Copy function enables administrators to copy an existing transaction code to use as a template for a new transaction code. To copy a transaction code, highlight the transaction code that is to be copied and click .                   

The Transaction Code edit screen appears. Navigate through the tabs and make any necessary changes to the transaction code.

When finished entering all of the information, click  to save the new transaction code and return to the Transaction Codes page. The new code is now listed in the grid and available to be used in transactions by users with the appropriate permissions.

Editing a Transaction Code

The Edit function provides the ability to modify an existing transaction code. To edit a transaction code, highlight the transaction code that is to be edited and click . The Edit Transaction Code window displays.

Make any modifications to the transaction code and click .

Deleting a Transaction Code

The Delete function provides the ability to remove an existing transaction code. Deleting a transaction code is considered a soft delete, meaning that the transaction code history is maintained in the database to uphold the integrity of journal entries that have previously used this transaction code. To delete a transaction code, highlight the transaction code that is to be deleted and click .            

A confirmation message appears.

Click Yes to delete the transaction code. Click No to return to the Transaction Codes page without deleting.   

Transaction Code Locking

The system places locks on transaction codes that have transactions posted to them. Administrators cannot make modifications to locked transaction codes, as making any changes would cause data inconsistency and corruption within the Recovery module. When an administrator accesses the Edit Transaction Code window for a locked transaction code, a message is displayed to indicate why the code is locked and what can be done to remove the lock and enable editing. The message also lists the accounts related to the locked GL account or sub-account to assist administrators with resolving the locks.

The following table lists the reasons why a transaction code may be locked and how the lock can be removed.

Locked Reason	Resolution
Money is posted using the transaction code that is not a reversal or reversed transaction.	Create a View with transaction code fields on a General Ledger View Type to list the involved accounts, then manually reverse the transaction that uses the transaction code in question. A new transaction code must then be applied to a new transaction with the same effective date as the original transaction. All transactions between the original and new transactions are automatically reversed and the new transaction code is automatically applied.
The transaction code is the selected value for the Initial Balance Transaction Code, Repayment Plan Payment Transaction Code, or Interest Transaction Code parameter in the Recovery page in System Management.	Select a new value for the Initial Balance Transaction Code, Repayment Plan Payment Transaction Code, or Interest Transaction Code parameter in System Management > Modules > Recovery > Recovery Settings.
The transaction code is referenced by one or more account expenses where IsTransferred = False (the account expense has not yet been transferred to the recovery account).	Create a View with the Expense View Type to list the involved accounts, then select a new transaction code for the expense within the Expenses - Account screen in the workspace.
The transaction code is configured to be the Default Transaction Code, Fee Transaction Code, or Mapping Transaction Code for one or more Batch Transaction Import profiles.	Select a new value for the Default Transaction Code, Fee Transaction Code, or Mapping Transaction Code for the Batch Transaction Import profile in System Management > Recovery > Batch Transaction Import.
The transaction code is configured to be the Transaction Code or Fee Transaction Code for one or more Batch Transaction Import profiles that have a status of Processed.	Select a new value for the Transaction Code or Fee Transaction Code for the Batch Transaction Import profile in System Management > Recovery > Batch Transaction Import.

Follow the instructions displayed within the message or click Ok to proceed to the Edit Transaction Code window in read-only mode.

 

 

---

©2023 Temenos Headquarters SA - all rights reserved.

Send Feedback