Clearance period on debit Orders

A period can be setup within which time a payment out cannot be made to an investor for a debit order collected within a period shorter than the setting under System Configuration. This functionality provides the option to prevent payment of cash on debit orders that can still be reversed.

NOTE: This functionality prevents the payment of cash equal to the amount of the debit order/s that can still be reversed out of the Finworks system, it does not prevent the selling of any invested units.

A. Activate clearance period

Go to system->Configuration and set clearance days.

There is also an option available to specify if the collection clearance days must only apply to work days (workdays exclude public holidays and weekends).

B. Debit Order Investment Instructions

If the functionality has been activated as in A above, on completion of a Debit order investment, the investment instruction will appear under the Instructions main menu -> Investments not cleared

Clicking into the investment (3 above) will display the ‘blocked amount’ and ‘Days left before clearance’ (Calculated from the bank date of the debit order collection)

The blocked amount can be cleared manually on the investment instruction

C. Withdrawal Instruction

A Withdrawal instruction for blocked amounts will be allowed to proceed, no payment batch will however be created for the withdrawal, until the amount has been cleared for Payment.

On submission of a withdrawal instruction relating to blocked amounts, the withdrawal instruction will appear under the Instructions main menu -> Waiting for clearance

Clicking into the withdrawal (4 above) will display the ‘blocked amount’ and ‘Days left before clearance’ (Calculated from the bank date of the debit order collection)

The blocked amount can be cleared manually from the withdrawal instruction

Selecting ‘Clear for Payment’ (2 above), will take you to the relevant debit order investment/s instructions that resulted in the blocked amount, where the payment can be manually cleared for payment.

D. Job to clear blocked units

An automatic daily job to clear blocked amounts (days left before clearance = 0) can be setup under the main menu item System

Last Updated on 12 months ago by Debra Hart