Unposted Item Repair (UIR) and the General Ledger

Each application that uses unposted item repair (UIR) has two General Ledger (GL) entries:

an unposted credit entry.
an unposted debit entry.

This allows the GL to remain in balance so that funds are added to and removed from these accounts based on whether the transaction is a credit or debit.

Additionally, there are two GL entries that are used when items cannot post to an account:

RIP/UIR return items - entries are made to this account when an item from UIR or return item processing (RIP) is returned to the source.
special handling - entries are made to this account when an item has a special handling disposition.

Entries made to these accounts require two manual entries:

debit the funds from the account.
credit another account, depending on the decision made to the item.

Examples

When a transaction comes into HORIZON-XE, an opposite offsetting transaction is also created. This is what keeps the GL balanced.

Example The customer writes a $20 check to cover a payment. This check enters HORIZON-XE via proof of deposit (POD). As a result, the following occurs in the next BOSS processing:

$20 debit posts to the customer's Demand Deposit (DD) account.
$20 credit posts to the Fed's account.

When the transaction cannot post to the customer's account for any one of various reasons, the transaction routes to UIR. As a result, transaction amount cannot post to the customer's account. Instead, the offset transaction amount posts to the unapplied account.

Example A $20 check enters HORIZON-XE via POD; however, it cannot post. The following occurs during the next BOSS processing:

$20 debit posts to the unapplied debit account.
$20 credit posts to the Fed account.

If the transaction was corrected, it can then post to the account during the next BOSS processing. An opposing transaction amount posts to the unapplied account, and an offsetting transaction amount posts to the customer's account.

Example Following the example above, the transaction is corrected so that it can post to the customer's account. As a result, the following occurs in the next BOSS processing:

$20 debit posts to the customer's DD account.
$20 credit posts to the unapplied debit account.
$20 credit remains posted to the Fed account.

If the transaction cannot be corrected, it is then returned. As a result, the transaction amount is removed from the unapplied account and moved to the return item processing (RIP) account.

Example When the check transaction cannot be corrected in UIR, it is returned. As a result, the following occurs in the next BOSS processing:

$20 credit posts to the unapplied debit account.
$20 debit posts to the return item processing account.
From here, you must manually return post offsetting transactions so that funds move out of the Fed account:
$20 debit to the Fed account.
$20 credit to the return item processing account.

In This Feature

Unposted Item Repair (UIR)

Unposted Item Repair Reasons

Automatic Dispositions for UIR

Manually Work Items in Unposted Item Repair (UIR)

Automatic Disposition Worksheets

NACHA Return Reason Codes Listing