Consideration for Business Days only in Days in Advance To Create File and Lock Period

Overview

From the Platinum patch (3.6019.118) version onward, if you want the Days in Advance To Create File and Lock Period for ACH payment creation and clearing respectively to consider only the business days or working days, then you need to create the default Business Hours with the name BANK.

For Days in Advance To Create File for APS payment creation

Action to be taken

The LPT for Automatic Payment Setup must get created after considering working days only when Days in Advance To Create File is defined. To ensure this, when you create the Business Hours in the Setup, you must create it in the name of BANK.

Reason

The system requires that you create the Business Hours in the name of BANK. This will ensure that all customers follow one Business Hours named BANK and the ACH can follow the BANK Business Hours to consider only working days for the payment creation. If the Business Hours are not created with the name BANK, the ACH will consider it as normal calendar days to create the payment creation.

Example

To understand this, let us say that in Custom Settings > ACH Parameters, the Days in Advance To Create File is set to 3, then the Loan Payment Transaction (LPT) will not get created three working days before the Due Date if Business Hours are not named as BANK. It will instead get created three calendar days before the Due Date.

For Lock Period for APS payment clearing

Action to be taken

The LPT for Automatic Payment Setup must get cleared after considering working days only when the Lock Period is defined. To ensure this, when you create the Business Hours in the Setup, you must create it in the name of BANK.

Reason

This is because, for some customers, the system needs the Business Hours named the same as the name of their Payment Mode. For example, some customers may name their Business Hours as ACH for ACH Payment Mode, Credit Note for Credit Note Payment Mode, and so on. If a customer has named their Business Hours as ACH for ACH Payment Mode, and if the system does not find the name ACH for the Business Hours for another customer, then the system will consider the calendar days instead of considering business days only. Thus, for considering working days only, if the system does not find the Business Hours with the required name, it will use all calendar days and not just working days.

To understand this, let us see the following table:

We see that if the Business Hours with the name as the name of the Payment Mode is not present, then the system considers BANK Business Hours for considering the working days. If BANK is not present, then the system does not consider working days only for the Lock Period.

Also, every customer may have a different name assigned to their Payment Mode, so assigning one specific name to the Business Hours for each Payment Mode name may also not work for all the customers as some customers may want to maintain only one Business Hours in their org.

To resolve this issue, the system requires that you create the Business Hours in the name of BANK. This makes the process simpler because if the system does not find the Business Hours with the required Payment Mode name, it tries to find the Business Hours with the name BANK. If it does not find the Business Hours named BANK, it will not consider only the working days for days to be considered for the Lock Period. 

This will ensure that only one Business Hours is created and the APS can follow these to consider only working days for the payment clearing. If the Business Hours are not created with the name BANK, the APS will consider it as normal calendar days to clear the payment.

Example

Let us say that Lock Period is set to 3, and if the system does not find the Business Hours as BANK or the required Payment Mode name, then the LPT will not get cleared after three working days after the payment creation. It will instead get cleared three calendar days after the payment creation. If the system finds the Business Hours named BANK, then the payment will get cleared three working days after the creation.