Reconcilliation

When reconciling collection results to the bank statement of your account, you will need to take into account a couple of assumptions so that the timings align between your collections data and your statement data, and the variances between these data sources are minimised. If you do not allow for these assumptions, or do so incorrectly, you will not be able to successfully reconcile your accounts.

Based on the Result Type of the collection, you should be able to reconcile these to the debits and credits on your account at an aggregate level. Depending on your statement format provided by the bank and your business rules you may also be able to reconcile each transaction. You should speak to your relationship banker about the different formats available and what works for you.

On which date should I reconcile results?

Instrument	Submitted	Paid	Unpaid	Failed	Disputed
EFT	Submission Date	Action Date	Action Date	Action Date	Dispute Date
NAEDO	Submission Date	Result Date	Result Date	Result Date	Dispute Date
DC	Submission Date	Result Date	Result Date	Result Date	Dispute Date

What impact do they have on my account?

Instrument	Submitted	Paid	Unpaid	Failed	Disputed
EFT	Credit	None	Debit	Debit	Debit
NAEDO	None	Credit	None	None	Debit
DC	None	Credit	None	None	Debit

These timings and impacts are due to the nature of the settlement process for each collection instrument. EFT is the oldest collection instrument and works slightly differently to NAEDO and DebiCheck. When using the EFT instrument, you are credited the full value of your accepted submission volume on the action date. Failures and unpaid result types are debited from the initial credit later.

In effect, EFT collections are assumed paid on action and are a short term loan from the bank to you. As such, using EFT often requires collateral since the bank takes the risk that you do not collect successfully on all your collections and then cannot reclaim those unsuccessful funds from you at a later date. Our SmartBanking model helps you access EFT with minimal or even no collateral.

You can influence the paid on action date assumption in your configuration to rather assume paid later after the action date if you do not want to treat these as paid on the action date. This is especially useful if you have ERP/CRM entries made when a paid result is received. Doing so, however, would mean that those paid collections would then not correspond to the timing of the credits made to your account.

NAEDO and DebiCheck, however, will return a paid response only when settled and no assumption is made. Furthermore, both NAEDO and DebiCheck support tracking which may mean the final result of the collection occurs on a date different from the action date. For this reason, the result date is used to indicate the day the transaction succeeded, failed or exited tracking.

Wherever disputed results occur, they will always be a debit to your account as funds are reversed from the collection and paid back to the debtor from your account. Disputes will always reflect in your bank statement data on the dispute date of the collections data. The result date therefore only refers to paid, unpaid and failed result types, and disputes have their own date.