When creating transactions like buy-backs, redemptions, cancellations etc. it sometimes results in the issuer being required to pay investors. When there are multiple transactions e.g. the entity completes a buy back, this may require a number of payments to be made to investors.
Once the transaction has been processed, the platform can assist you in completing these payments by creating an ABA file for the selected transactions.
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- From the menu, go to Transactions and click All transactions.
- Using the filter, search for the transactions you require to make payment for.
- Using the checkbox select the transactions you wish to make payment for.
- Once you have selected the transactions select the Actions menu at the top of the list, then select Create payment file.
- When prompted "Create a buy back payment for XX selected redemption transactions?" click Yes if the number of payments is correct or Cancel if you wish to start again.
- You will then be directed to the payment setup where you can enter:
- ABA payer name. Appears on the transaction record in the payee’s bank account.
- Payment description. Is displayed on the payment statement.
- Allow cheque payments for investors without a bank account on record. When this box is ticked, you can enter a cheque starting number. The system will record cheque numbers incrementally from this number. This feature is designed to assist with the reconciliation of cheque payments. (See Pay your investors via cheque for more details.)
- Select a payment date. This is the date on which you agree to transfer funds to your investors.
- Attach a Notice of dividend payment document to send to investors. Note, whether or not any notice is attached, the system will generate and distribute a standard dividend/payment statement to each investor.
- Once the payment has been set up click Next to review the payment details.
- If you are happy that everything is correct click Next to calculate the payment . This will bring you to the final stage of the set up where you can Confirm and schedule the payment (see Schedule a payment, notify your investors and issue payment statements for more details).
- Under ABA files, click Download .aba file. After the file has downloaded and you've uploaded it to the bank, answer the following question: Did your bank accept the ABA file?
- If your bank accepted the ABA file, click Yes, the file was accepted to set all Direct Credit payees to Paid. Any failed or returned payments can be handled by changing the status of the failed payment from Paid to Payment retained, or by updating the payee's bank details. Once bank details have been updated you can generate a new ABA just for those payees. e (See Pay your investors via Direct Credit for more details.)
- If the file was rejected because of a particular payee then click the No, the file was rejected button. Now you can go back and set any Direct Credit payees from Paid to Retained.
- Once an investor's bank details have been updated, a new ABA file can be downloaded and re-uploaded to the bank
- Once you have confirmed the ABA file upload, you can click the View details link under ABA files to see a list of payments to be made. The list contains the following fields from the investors recorded banking information:
- Account name
- ABA reference no
- BSB
- Account number
- Direct credit (this is the amount to be paid to the investor)
- At this point, the status for each payment in the ABA file will be automatically set to Paid unless the investor is missing bank details. In which case, the status will be set to Payment retained - no bank details. See handling failed payments for more information on dealing with failed payments.
- To review the status of direct credit payments, from the Payment detail view click on the blue number next to Direct credit to go to the Direct credit detail list. This view shows the Status along with payment details for each payment made to investors.