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TINS Direct Deposit Web-Based Training

Lesson 8: Payments Returned or Made in Error

Returned Money Items

A returned money item is a direct deposit payment that is automatically rejected and returned to the Comptroller’s office by the payee’s receiving depository financial institution (RDFI) when the RDFI cannot post the payment to an account. Reasons for a return may include:

  • The account is closed.
  • There is no account/unable to locate the account.
  • The account holder is deceased.
  • The payment was refused (by the payee).

Returned Funds

When a returned money item is received by the Comptroller’s office, the Uniform Statewide Accounting System (USAS) processes a journal voucher to return the funds to the agency that issued the payment. Funds are credited to the paying agency’s default funds as follows:

  • Fund 9014 for payroll payments.
  • Fund 0980 for bills, travel and annuity payments. Agencies may request a change from Fund 0980 to the original payment fund. See Successful Reversals new window on TexPayment Resource.

Report of Returned Money Items

A daily report is generated for each paying agency that lists returned money items with payee information and the total funds credited back to the agency. Each agency’s report provides a breakdown for each of the following payment types:

  • Payroll payments.
  • Annuity payments.
  • Travel payments.
  • Vendor payments.

The agency should use the report to determine if the payment should be reissued and to notify their payees of the returned payment. For a sample of the report and its field descriptions, see SWA6100A: Direct Deposit Funds Received new window on TexPayment Resource.

PMTHIS

When a returned money item is received, a transaction is updated on PMTHIS with the description of the action and the three-character ACH return reason code (RXX). In the following example, the RDFI returned the payment with return reason code R02 – Account Closed.

Example – PMTHIS With a Returned Money Item

PMTHIS.1XXXXXXXXX6                                                    MM/DD/YY

  TRANS     TRANS                                  MAIL INPUT  OPERATOR
  DATE      DESCRIPTION                  DLN       CODE SOURCE   ACID   EXCEP  
  --------  -----------------------   -----------  ---- ------ -------- -----
  MM/DD/YY  DELETE DIRECT DEPOSIT     SYSTEM GEN   000   SYS   NOC-R02
  MM/DD/YY  DIR DEP EFFECTIVE DATE    SYSTEM GEN   000   SYS 
  MM/DD/YY  DIRECT DEPOSIT SETUP      EXTERNAL     000   XXX   TINX123
  MM/DD/YY  MAIL CODE SETUP           EFT          000   XXX
  MM/DD/YY  MASTER ACCOUNT SETUP      EFT                XXX
  




 END OF DISPLAY - PF3=QUIT, PF4=INQMEN

Next: Reversals