Lock Based ACH

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Lock Based ACH

In Lock Based ACH, the loan payments are created automatically in an uncleared state. Based on the loan payment, the uncleared transactions are auto cleared by the system.

A Custom Setting is useful when you have to store information that will be accessed from the Apex code, quite often. The custom settings required for Fractionalization are as explained below.

A. Transaction approval config

Prerequisites

None.

Steps

Perform the following steps to manage the custom settings for Transaction Approval Config:

  1. Login to your Salesforce account.

  2. Click your Username.

  3. Click Setup.

  4. Go to App setup.

  5. Click Develop.

  6. Select Custom settings.

  7. Click Transaction Approval Config.

  8. Click Manage. 

  9. Click Edit.

  10. Select Payment.

    Note:

    You must keep Payment unchecked if you wish to enable auto-clearing of payments.

    Similarly, you must select Payment if you do not wish to enable auto-clearing of payments.

  11. Select Funding.

  12. Select Investor Fund.

B. ACH parameters

Prerequisites

None.

Steps

Perform the following steps to manage the custom settings for ACH Parameters:

  1. Login to your Salesforce account.

  2. Click your Username.

  3. Click Setup.

  4. Go to App setup.

  5. Click Develop.

  6. Select Custom settings.

  7. Click ACH Parameters.

  8. Click Manage.

  9. Enter the Days in advance to create file.

    Note:

    Days in advance to create a file is the number of business days prior to a payment's due date for inclusion in an ACH file.

    For example, if the next ACH Debit date is June 18, 2014.

    Days in advance is 2

    Then, your NACHA file will be generated on June 16, 2014. 

  10. Enter the Lock Period for Investor Funds.

    Note:

    This is the period during which the funds remain in an uncleared state. The Investor fund transactions are cleared only after the lock period is over.

  11. Enter the Lock Period for Loan Payments.

    Note:

    This is the period during which the loan payments remain in an uncleared state. The loan payments are cleared only after the lock period number of business days have passed by, since the time of its creation.

  12. Select  Use Lock based ACH.

    Note:

    Select this if you wish to use lock based ACH, where the loan payments are created automatically in an uncleared state. Based on the loan payment, the uncleared transactions are auto cleared by the system.

C. Metadata segments

The ACH file has various segments, this setting includes the name of each segment with the name of Object corresponding to the segment.

Prerequisites

None.

Steps

Perform the following to manage the custom settings for ACH Parameters:

  1. Login to your Salesforce account.

  2. Click your Username.

  3. Click Setup.

  4. Go to App setup.

  5. Click Develop.

  6. Select Custom settings.

  7. Click Metadata Segments.

  8. Click Manage. 

  9. Click Edit if required.

Bank setup

In order to generate a NACHA file, you must create Company Bank accounts.  In this section, you will learn how to create Company bank accounts for Investor trust accounts, Collections Trust accounts, Advance Trust accounts, Business accounts, Tax Withholding accounts. 

Note:

Perform the following steps to add Bank accounts to the Selected tabs:

  1. Login to salesforce account.

  2. Click +.

  3. Click Customize my tabs.

  4. Click Bank accounts from Available tabs.

  5. Click Add.

  6. Click Save.

Investor trust accounts

In a typical Online Marketplace, investors must first deposit funds into the platform before they can start investing. Most often, these funds from every investor are tracked in the back-office system using a virtual account for the investor, whereas real money is physically deposited into a trust account with a bank – called the Investor Trust Account. In other words, real money from all investors is physically deposited into the Investor Trust Account, whereas the back-office system tracks the individual balances of each investor in the investor’s virtual account.

Prerequisites

None.

Steps

Perform the following steps to create Company Bank accounts for Investor Trust accounts:

  1. Click Bank accounts.

  2. Click New.

  3. Select the required Account Type.

  4. Enter the Bank account number.

  5. Enter the Bank name.

  6. Enter the Routing number.

  7. Select the required Investor Account.

  8. Select the required Contact.

  9. Select Active.

  10. Click Investor Trust account.

  11. Click Add.

  12. Click Save.

On clicking Save, you see that a new Company account for Investor trust account has been created. 

Note:

Similarly, follow the steps 1 to 12 to create Company Bank accounts for Collections Trust Account for handling payments, Advance Trust account for handling disbursals , Business account and Tax Withholding Account. 

Note:

  • You cannot delete a Bank account which is active and involved in ACH transactions.

  • You cannot create more than one Investor Trust Account, Collection Trust Account, Advance Trust Account and Tax Account.

  • You cannot delete the active Investor Trust Account, Collection Trust Account, Advance Trust Account and Tax Account.

Investor bank accounts

Investor Bank Accounts are used to receive electronic payments from your investors. 

Prerequisites

None.

Steps

Perform the following steps to create a bank account for the Investor:

  1. Login to your Salesforce Account.

  2. Click Service Configuration, Manage, Bank Information.

  3. Click New Bank Account.

    Note:

    After creating an Account for an Investor, scroll down to find New Bank Account to create a bank account for the Investor.

  4. Enter the Account type.

  5. Enter the Bank Account number.

  6. Enter the Bank name.

  7. Enter the Routing number.

  8. Select the required Account.

  9. Select the required Contact.

  10. Select Active. 

    Note:

    This is a mandatory step .

  11. Click Save.

Now, you must set up ACH on loan. For more information about setting up ACH, refer to section Setting up Automated Payments with Multiple Payment Modes in chapter Payments. 

Field reference

Field NameDescription
ACH

ACH (Automated Clearing House) is a nationwide EFT (Electronic Funds Transfer) system that provides for the inter-bank clearing of credit and debit transactions and for the exchange of information among participating financial institutions. It is a batch processing system in which financial institutions accumulate ACH transactions throughout the day for later batch processing. ACH Network transactions are transmitted electronically. This leads to faster processing time and cost savings.

ACH ParametersACH Parameters are the parameters required to configure ACH for your organization.
Routing Number

Routing number is a 9-digit number assigned to financial institutions by The American Bankers Association (ABA).

Investor Trust AccountIn a typical Online Marketplace, investors must first deposit funds into the platform before they can start investing. Most often, these funds from every investor are tracked in the back-office system using a virtual account for the investor, whereas real money is physically deposited into a trust account with a bank – called the Investor Trust Account. In other words, real money from all investors is physically deposited into the Investor Trust Account whereas the back-office system tracks the individual balances of each investor in the investor’s virtual account.
Investor Bank AccountInvestor Bank Account is used to receive electronic payments from your investors.

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