What field must be altered in the Entry Detail Record for a file reversal?

What field must be altered in the Entry Detail Record for a file reversal?

• A. Transaction Code
• B. Company Name
• C. Effective Entry Date
• D. Service Class Code

Answer: (A)

In the context of processing electronic payments through the Automated Clearing House (ACH) network, a reversal file is used to correct an erroneous transaction that has already been posted. The Entry Detail Record within an ACH file has specific data fields that must be manipulated to reflect a reversal accurately. When creating a reversal entry, the most critical field to alter is the Transaction Code. This is because the Transaction Code indicates the type of transaction being performed, such as a debit or credit. For a reversal, the system needs the Transaction Code to reflect the opposite of what was originally processed. For instance, if the original transaction was a debit (Transaction Code indicating a debit), the reversal must be marked as a credit. This ensures that the reversal appropriately counteracts the previous transaction in the accounts involved. The other fields in the Entry Detail Record—like Company Name, Effective Entry Date, and Service Class Code—do not require alteration for the purpose of initiating a reversal. The Company Name remains the same since it identifies the originator of the transaction, and the Effective Entry Date is typically unchanged as it refers to when the original transaction was scheduled to be processed. The Service Class Code, which categorizes the type of payment being processed (such as payments between consumers or businesses),

In the context of processing electronic payments through the Automated Clearing House (ACH) network, a reversal file is used to correct an erroneous transaction that has already been posted. The Entry Detail Record within an ACH file has specific data fields that must be manipulated to reflect a reversal accurately.

When creating a reversal entry, the most critical field to alter is the Transaction Code. This is because the Transaction Code indicates the type of transaction being performed, such as a debit or credit. For a reversal, the system needs the Transaction Code to reflect the opposite of what was originally processed. For instance, if the original transaction was a debit (Transaction Code indicating a debit), the reversal must be marked as a credit. This ensures that the reversal appropriately counteracts the previous transaction in the accounts involved.

The other fields in the Entry Detail Record—like Company Name, Effective Entry Date, and Service Class Code—do not require alteration for the purpose of initiating a reversal. The Company Name remains the same since it identifies the originator of the transaction, and the Effective Entry Date is typically unchanged as it refers to when the original transaction was scheduled to be processed. The Service Class Code, which categorizes the type of payment being processed (such as payments between consumers or businesses),