Reverse an ACH Transaction

To reverse transactions, follow these steps:

1. Select the appropriate previously created file.

Once transactions have been processed into an ACH Automated Clearing House — An electronic network for financial transactions in the United States. Transactions within our software can be made by either check or ACH. file in Millennium®, you can select them from a list. Use the unmarked drop-down list in the page header to select a previously created ACH file:

After you make your selection, the system displays the entries (transactions) of that ACH file:

2. If you want to reverse:

• Every transaction on the screen, skip to step 3.
• Only certain transactions, right-click on each line item and select the Toggle Reversal option:

Once toggled, you will see the value Reversal in the Status column:

When you proceed, the system will reverse only the items marked Reversal.

3. Click on the Reverse button at the bottom of the screen.

The system requests confirmation about the reversal:

4. Click the Yes button.

The system generates a new ACH file, just like any regular ACH file—but the entries are the opposite of the original file. The new ACH reversal file is now listed in the drop-down list in the page header.

If you select the new ACH reversal file, you see that it contains reversal entries only:

Example of a Reversal

To better explain the process, follow along with the steps of this example:

1. You go to an ACH Warehouse page and use the filters in the page header to narrow down the items list to three entries.
2. You create an ACH file of those three entries.

The ACH file is listed by its date-time stamp: 2010-01-2810:26:01.

3. Later, you want to reverse one transaction in that ACH file (the first line item). You select that file from the drop-down list, select the first line in the file, then toggle its status for reversal.

The system displays Reversal in the first line’s Status column.

You click the Reverse button.

The system creates a new, corresponding ACH reversal file. This new file contains one entry (the line item you toggled in the original file) and is marked by a new date-time stamp: 2010-01-2819:18:30.

The original file retains its original date-time stamp.

Now compare the actual files. The original file (10:26:01) contains three transactions. In the first transaction, the amount comes from Bank A and is sent to Bank B:

101 611001100 0110001381001281026A094101ACME BANK OF US 12345678

5200 PPDTRANSFER 090107090107 1011000130000001

62211111111812345679 0000002000BILLING NEW YORK BIWEEKLY BI0011000130000001

62711111111812345679 0000002000NYCO NEW YORK BIWEEKLY BI0011000130000002

62211111111812345678 0000038965TAX NEW YORK BIWEEKLY TA0011000130000003

62711111111812345679 0000038965NYCO NEW YORK BIWEEKLY TA0011000130000004

82000000040044444444000000040965000000040965 011000130000001

5200 PPDTAXPAYMENT090112090112 1011000130000002

622111111118123456788 0000003384NY NEW YORK BIWEEKLY NY1011000130000005

705TXP*000000047921108*WT*090109*S*3384*****\ 00010000005

62711111111812345678 0000003384NYCO NEW YORK BIWEEKLY NY0011000130000006

82000000030022222222000000003384000000003384 011000130000002

5200 PPDTAXPAYMENT090114090114 1011000130000003

622111111118123456789 0000028230FITW NEW YORK BIWEEKLY FI1011000130000007

705TXP*110000002*94105*090301*1*18600*2*4350*3*5280*\ 00010000007

62711111111812345678 0000028230NYCO NEW YORK BIWEEKLY FI0011000130000008

82000000030022222222000000028230000000028230 011000130000003

9000003000002000000100088888888000000072579000000072579

9999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999

9999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999

The reversal file (19:18:30) contains one transaction and takes the money from Bank B and sends it to Bank A:

101 611001100 0110001381001281918A094101ACME BANK OF US 12345678

5200 PPDTRANSFER 090107090107 1011000130000001

62711111111812345679 0000002000BILLING NEW YORK BIWEEKLY BI0011000130000001

62211111111812345679 0000002000NYCO NEW YORK BIWEEKLY BI0011000130000002

62711111111812345678 0000038965TAX NEW YORK BIWEEKLY TA0011000130000003

62211111111812345679 0000038965NYCO NEW YORK BIWEEKLY TA0011000130000004

82000000040044444444000000040965000000040965 011000130000001

9000001000001000000040044444444000000040965000000040965

9999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999

9999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999

Notice the 22 and the 27 are swapped between the two files in the 6 records. The values represent the following:

• 22 — checking credit
• 27 — checking debit

Again, when you come back to the ACH warehouse, no new records will be waiting to create an original file. You can go to the drop-down list and show the outstanding records.

The end result is not the appearance of “it never happened.” Instead, Accounting can see the entries for the reversal clearly and the warehouse history contains both the original file and the reversal file.

Re-creating an ACH File After Reversing Transactions

In most cases, if you reverse transactions in an ACH file, you will need to re-create that ACH file. For instructions on recreation, see ACH File Recreation .