IMU_Balancing Invoices

Balancing Invoices

Although InvoicingSM provides many automated presentment and billing features, situations might arise in which specific line items on invoices are not paid to the vendor (disbursements/checks) due to a variety of technical problems. These technical problems can occur for many reasons, such as missing/invalid data, payoffs, loans released by the servicer, and invalid vendor payee codes.

What is invoice balancing?

Balancing is the process of locating unpaid line items on invoices by viewing various InvoicingSM reports and identifying the technical errors that cause the non-payment situation. Balancing can also involve reconciling the invoice line items to other reports outside of InvoicingSM to help identify the technical errors.

When and why should I perform invoice balancing?

Ideally, invoice balancing should occur on a daily basis. Daily balancing helps you quickly identify non-payments and resolve the issue before problems with vendors occur. Daily balancing also helps obtain faster resolutions when the InvoicingSM team or your mortgage servicing integration company is involved.

How does ACH payment affect invoice balancing?

If your company has registered to pay approved invoices by ACH (Automated Clearing House), the process of ensuring that all approved invoices have been paid is similar to the process for checks.

Balancing should be completed even if the DDC1 or ACH Payment Import notice does not indicate any errors. Non-payment issues can occur for reasons other than errors.

For ACH, there is a three-business-day delay before paid invoices appear on InvoicingSM reports. Therefore, you cannot balance ACH payments until three business days after they are generated. ACH is only available to MSP® users at this time.

The following steps assume you have Microsoft® Excel installed on your computer and have a working knowledge of this spreadsheet program. You must also be assigned to the Import/Export Notification permission group. Contact your system administrator for more information.

To balance an invoice:

Review DDC1 and ACH e-mail notifications.
As a member of the Import/Export Notification group, review the following email notifications for each of the following DDC1 and ACH processes as each one completes for your company:
- DDC1 Check Request Processed (DDC1 Export)
- DDC1 Payment Import
- ACH Payment Import: This e-mail is not sent until the ACH process completes (3 full business days after ACH payments have been generated). For example, if ACH payments are generated on a Thursday, you will not receive the email until the evening of the following Tuesday. Since ACH transactions will not be available on reports until the ACH process is completed (three full business days after the ACH payments have been generated), you will not be able to balance ACH payments until you receive this email.
Locate unpaid line items.
1. After you receive the DDC1/ACH email notifications, run the Payment Request Statistics report to use as your worksheet. This report provides the number of invoices that were partially paid or totally unpaid. If there are no invoices that are partially paid or totally unpaid, skip the remaining steps.
2. Review the Payment Info by Date Report to locate any invoice items that were not paid. Invoice Items that are not paid will not have Check/ACH numbers. Sort the report by Check/ACH numbers by clicking the Check/ACH # column header, which will move all invoice items missing Check/ACH numbers to the top of the report.
  If no items are missing check/ACH numbers and all items are paid, you can skip the remaining steps.
3. If items on the report have missing check/ACH numbers, export the report to spreadsheet format (Microsoft® Excel) by clicking the Export link.
  The File Download window appears.
4. Save the file on your computer.
5. Open the report in Microsoft® Excel.
6. Select and remove all rows except those missing check/ACH numbers.
7. Create a new total after the last entry in the Amount column.
8. Re-save the report in Excel. You now have a reference report of all non-paid items that need to be addressed.
9. Verify that the total of the unpaid line items you created in step 7 reconciles to the Unpaid Line Items Statistics section on the Payment Request Statistics Report.
Identify reasons for unpaid line items.
1. To identify any payment processing errors, run the Payment Error Report for the same date you ran for the Payment Request Statistics and Payment Info by Date Report reports.
2. Reconcile each line item on the spreadsheet version of the Payment Info by Date Report to the Payment Error Report.
3. Verify that the total number of line items with errors in this report reconciles to the Line Items with Payment Errors section on the Payment Request Statistics report.
4. For each non-paid line item on the Payment Info by Date Report spreadsheet that you cannot locate on the Payment Error Report, use one or more of the following MSP® reports to determine their non-payment reasons:
  - E-0C6
  - P-141
  - T-6CM
    For more information on obtaining and using these reports, contact your Client Support representative.
5. Evaluate each error under the Error Msg column to determine how you want to handle each unpaid line item. The following error code lists are available for reference:
  - MSP® Error Codes
  - LoanServ Error Codes
6. Click the Invoice # link to see detail of this line item. The invoice status should be Check Requested or ACH Requested.
7. Click the Payments tab and verify that the Trans Code, Reason Code and CAW Codes are populated correctly.
Review additional reports as needed.
Run one or more of the following reports if additional research is needed:
Handle unpaid line items.
Do one of the following:
- To pay the line item after identifying the reasons it was unpaid, correct the line item and reset it by selecting the Leave Approved option.
- To deny the line item if it should remain unpaid, reset it by selecting the Deny option.
See Resetting Invoices for more information. To reset invoice line items, you must be assigned to the Servicer Admin permission group.

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