CLOSING A SHARE TYPE ACCOUNT

 

 

    Individual share types can be closed separately on any member=s account.  For example you can close a Share Draft account, Club account, Funds manager etc. without closing the Regular shares.

 

1.   Withdraw all funds from the account.  The balance must be zero.

 

2.   In Program #2 go to >Share-Deposits=.

 

3.   Enter the letter for the share type you wish to close.

 

4.   Choose transaction #181 SC CLOSED-SHARE-ACCOUNT. 

 

5.   This transaction will show >N/A= in both the >PRIOR-SHARE BALANCE!= and >Enter TRANSACTION (DOLLAR) AMOUNT= fields.  Press >F11= to view the voucher.

 

6.   >CLOSED-SHARE-ACCOUNT= will be flashing, and the dollar amount of the transaction is >0.00=.  Enter your Teller Password to post the transaction.

 

       This specific share type is now closed. 

 

 

The following results occur:

 

1.  Program #2

 

   >(Close)= appears after the balance in this share type.

 

      Transactions cannot be posted to this share type.

 

A yellow warning flag flashes in the lower left hand corner saying >!CLOSED-SHARE-ACCOUNT!= if you try to post a transaction

 

 

NOTE: If it becomes necessary to post a transaction to this account you must open the share type

             again.  (See procedure for Opening A Share Account).  After the necessary transactions are

             done you can then close the share type again.  

                                                                        

2.  Program #24 Share Draft Posting

 

Share drafts will still post to this account.  Because the balance is zero, a share draft will cause the account to be negative balance.  The item will appear on the exceptions list in Option B, and should be returned by the credit union.  When the NSF credit is received it will bring the account balance back to zero.

 

3.  Program #22 ATM /Debit Card Posting

 

Because your member received the benefit of the cash withdrawal, or purchase made using an ATM card, these transactions must be posted to the member=s account.  Because the account is zero balance, ATM transactions will cause the account balance to become negative.  The transactions will appear on the exceptions list in Option H.  The credit union will then have to make arrangements to collect the funds from the member and bring the account balance back to zero.

 

 

4.  Program #25 ACH Posting          

 

When an ACH transaction is posted to a member=s account the system looks for the >Closed Share Type= flag.  If this share type has been closed, the system will:

                        1.   Post the ACH to the designated share type.  The posting status code will be >CL= (Revoked Closed)

                        2.   Automatically post an offsetting transaction to bring the member=s balance back to zero.

3.   The transaction will appear on the exceptions report in Option B indicating that the 

      account is closed.

                        4.   You should return the transaction to the originator via your normal channels using a reason

                        code to indicate this account is closed or that the share account type is invalid, and 

                        another share type needs to be used..  (No entry into the computer is necessary.  The

                        system already did it for you.)

 

5.  Program #16 Payroll Posting

 

In order for posting totals to remain in balance, the system must post payroll received to this account.  The Payroll Posting report that is created will indicate with ** after the balance that this share type is closed.  You will then need to reopen the share type and manually post the necessary transaction to bring the balance back to zero, then close the share type again.

 

6.  DIVIDEND POSTING

 

If the field in Program #47 Option C which reads >Do >ZERO-BALANCE CLOSED-SHARES= receive NO DIVIDENDS > is marked >Y= the system will not pay dividends to an account which has been closed

      in this manner, and is zero balance when month-end routines are run.

 

                        NOTE: A NEGATIVE BALANCE ACCOUNT MAY RECEIVE DIVIDENDS.