Reverse or Recycle a Disbursement

Since the disbursement activity is spawned from another activity (FreeLook, Withdrawal, FullSurrender, ADDClalim, and SystematicWithdrawal) then it will automatically be reversed when the parent activity is reversed.  View the accounting details to verify the disbursement reversal accounting.  

 

You may need to reverse an activity where a disbursement transaction was spawned and the check was already sent to the client.  If the disbursement activity is reversed after the status has become active, then the disbursement goes into a process known as Recovery.  Under Recovery the system recognizes that the disbursement has already been created, and it assumes receipt.  Therefore, when the disbursement activity is reversed, the system determines the company is owed money back and increases the recovery balance by the amount of the disbursement.  

 

If a subsequent withdrawal is processed on the contract, that withdrawal will deduct the recovery balance from the amount requested, and will create the disbursement for the difference between the two amounts.  

 

If the subsequent withdrawal is processed for less than the recovery balance, then the system will simply reduce the recovery balance by the amount requested, and no disbursement is spawned.  

Reversal Statuses

Status names are completely configurable, but the actual codes never change.  There are three codes that represent the status of a disbursement record when it is created by an activity:  02, 01, and 27.

 

When a disbursement is reversed, the codes are updated as follows:

 

Steps to Reverse a Pending Disbursement

  1. Open the policy that contains the disbursement.

  2. Click Activities from the Left Navigation menu to open the Activities screen.

  3. Click the trashcan disbursement reverse icon icon next to the activity that spawned the disbursement.

  4. Click OK in the confirmation window.  The activity that generated the disbursement will be reversed.

 

Steps to Recyle a Pending Disbursement

  1. Open the policy that contains the disbursement.

  2. Click Activities from the Left Navigation menu to open the Activities screen.

  3. Click the recycle recycle icon icon next to the activity that spawned the disbursement.

  4. Enter the new information for the activity and click OK.

  5. Click the lightning bolt next to the activity.  The new disbursement record will display on the Activity screen.

  6. Process the disbursement.

 

Note:  The new disbursement will need to be approved.  

 

 

 

Steps to View Reversal Accounting for a Disbursement

  1. Open the Activities screen for the policy that contains the reversed disbursement.

  2. Click the box next to Shadows at the top of the Activity screen and click Refresh.

 

Shadows box checked on the Activities screen

Filters on Activity Screen

 

  1. Scroll through the list of activities to the disbursement that was reversed.  The status will be listed as Shadowed.

  2. Click the Activity Details icon to the left of the activity.  This will open the Activity Details window.

  3. Click the Accounting link at the top of the window.

  4. Close the window when finished reviewing the reversal accounting record.

 

Disbursement accounting from Activity Details window

Accounting Details of Reversed Disbursement Activity