Concept
When a Cashbook Transaction Dishonours (‘bounces’), a code
for the dishonour is supplied by the bank. This assists in follow up with the
client regarding the dishonour – e.g. An ‘account closed’ reason would require
different action to a ‘not sufficient funds’ reason.
New Zealand
When a New Zealand bank dishonours a
transaction, an Unpaid Item transaction is created against the bank account.
This transaction has a particular field
which contains the reason code for the dishonour. The Analysis Code and
Reference fields show the Other Party Code and Other Party Reference field
values from the original transaction.
The banks’ numeric code for the dishonour
reason is posted to the Account Transaction
description field. Currently the dishonour reason codes for all
supported New Zealand banks are the same and are listed below:
Reason Code | Definition | Explanation |
DISHONOUR-01 | Unauthorised | The direct debit authority number has not been loaded at the clients branch |
DISHONOUR-02 | No Account | The account you are trying to debit does not exist |
DISHONOUR-03 | Insufficient funds / refer to debtor | There is not enough money in the clients account to cover the debit |
DISHONOUR-04 | Payment stopped | The payment has been stopped – you will need to contact the client to determine why |
DISHONOUR-05 | Authority cancelled | The client has cancelled the authority |
DISHONOUR-06 | Account closed | The account you are attempting to debit has been closed |
DISHONOUR-07 | Account transferred | The account you are attempting to debit has been transferred |
| Payment limit exceeded | You are attempting to debit more than the agreed amount |
Setup Required
Specifying an Unpaid Item Transaction Type on each Account Type. The system will then automatically generate Statement Transactions
for all dishonours using this single Transaction Type.
Australia
NAB raises a Dishonour transaction, and
constructs a text field which is made up of details of the lodgement reference,
an unknown numeric reference and an abbreviated dishonour reason code as
detailed below.
| Reason Code | Definition | Explanation |
| Incorrect Acct | No Account | The Account you are trying to debit may not exist |
| Refer to Cust | Refer to debtor | You will need to contact the Client to determine why the debit has been rejected. It is most likely due to insufficient funds |
| Payment Stop | Payment Stopped | The payment has been stopped – you will need to contact the Client to determine why |
| Account Closed | Account Closed | The account you are attempting to debit has been closed |
| Customer Dec'd | Client Deceased | The account holder is deceased |
Setup Required
If a greater level of analysis or reporting
is required over the types of dishonours, mappings may be created between
specific Dishonour Reason Codes and Transaction Types.
The Transaction Type Reference and
Description is then displayed on the Account Transaction Browse to determine the dishonour reason.
The Account Transaction Report can also be used to report the types of
dishonours.
Note: Reason Codes
are case sensitive.