Best Practices For Adding Trackers to Charged Off Checking Accounts & Recovery Payments

Introduction

When a checking or savings account is charged off in CU*BASE, the money is offset to a G/L and the balance zeroed out. The account is then closed.

We advise to add a Tracker to the account with the charged off amount and the remaining balance to be paid.

These instructions walk you through how to add that tracker and discuss best practices for updating the tracker, as payments are received toward the balanced owed by the member.

Summary of Steps

Charging off the Account

Use # 201: Charge Off Savings/Checking Accounts to charge off the applicable savings and/or checking accounts

• The Charge Off Savings/Checking Accounts Reference Guide is available to guide you through the process.

** This step needs to be completed before completing the steps in this document. **

Adding a Tracker to Record the Amount Charged Off

Enter the member’s account through Member Inquiry, then follow these steps.

• To see complete steps on Creating a Tracker click here

1. In the Tracker type field, enter XC – Charged Off Share/Checking
   • If this Tracker type is not an available option to choose from, then your credit union has not configured this as a defined Tracker Type option. You will need to utilize Tool # 277: Configure Tracker Types and create the XC Tracker type before continuing.
2. In the Memo type field, enter CO - Charged Off
   • If this Memo type is not an available option to choose from, then your credit union has not configured this as a defined Memo Type option. You will need to utilize Tool # 260: Configure Memo Type Codes for Trackers.
3. In the text box, enter the details of the charged off account, including amount charged off, date charged off, amount remaining due to the credit union (if applicable), and any other applicable information you would like notated.
4. Select Save/Continue to move to the next screen.
5. If you would like to schedule a follow-up task, check the box ‘Entry just made required a follow-up’ then enter the desired date in the Follow-up date field
6. In the Person to call back field, ensure the correct User ID has been entered before clicking the forward arrow to save and exit.

 Step 1. 

 Steps 2, 3, & 4.

Steps 5 & 6.

 

Adding a Tracker to Record a Recovery Payment Made

Enter the member’s account through Member Inquiry, then follow these steps.

• To see complete steps on Creating a Tracker click here

1. In the Tracker type field, enter XC – Charged Off Share/Checking
   • As mentioned previously, if this Tracker type is not an available option to choose from, then your credit union has not configured this as a defined Tracker Type option. You will need to utilize Tool # 277: Configure Tracker Types and create the XC Tracker type before continuing.
2. In the Memo type field, enter RC – Recovery Payment
   • As mentioned previously, if this Memo type is not an available option to choose from, then your credit union has not configured this as a defined Memo Type option. You will need to utilize Tool # 260: Configure Memo Type Codes for Trackers.
3. In the Text Box, enter the amount the recovery payment, the sub-account account the recovery payment was paid towards, the date the recovery was made, method of payment, and other applicable information you would like notated.
4. Select Save/Continue to move to the next screen.
5. If you would like to schedule a follow-up task, check the box ‘Entry just made required a follow-up’ then enter the desired date in the Follow-up date field
6. In the Person to call back field, ensure the correct User ID has been entered before clicking the forward arrow to save and exit. 

Step 1.

 Steps 2, 3, & 4.

 Steps 5 & 6.

Related Materials

The following are related materials to Charging Off Checking Accounts and Member Trackers.

• Reference Guide: Charge Off Savings or Checking Accounts
• Knowledge Base Item: How do I Charge Off a Base Share (000)?
• Overview of Trackers
• Creating a Tracker on a Member's Account

For a PDF document of the information above click here.