Tags
Bacs Reports
Categories
ADDACS, AUDDIS, Bacs, Direct Debit, Reports
Date
14, JUN 2019

Bacs produce a series of Bacs reports / error reports to help Service Users manage their Direct Debit collections. As a Service User you have a responsibility to action these Bacs reports, but more than that, it’s in your interests to do so. These reports contain vital information to help you ensure a successful Direct Debit scheme.

What Bacs reports are available?

The following are all Bacs reports that you should be accessing and using:

  • The AUDDIS Report
  • The ARUDD Report
  • The ADDACS report
  • The DDICA Report

How Do I access my Bacs reports?

Your BACS reports are generated at a Service User Number level and they can be downloaded from the payment services website. To do this you would need to log in – either with a smartcard or password, identify which reports you wish to access and then download these. Alternatively, you can download the reports (either en-masse or individually) through your Bacs software – or of course your Bureau can do this for you.

How do the Bacs reports work?

BACS reports are either generated when you, the Service User, undertake an action – such as submitting a collection file, or when your customer undertakes an action – such as changing their bank account. Because you can’t always predict when your customers will undertake an action that affects you, you can receive reports on any working day of the year.

Generally these reports work by exception e.g. they only inform you of actions that were unsuccessful or things that have changed rather than informing you of all successful actions.

Lets look at each Direct Debit report in turn:

The AUDDIS Report

The Automated Direct Debit Instruction Service (usually referred to as AUDDIS) publishes an Advice of Bank Returned Direct Debit Instructions – or AUDDIS report.

There are three ‘record types’:

  • D = Advices return of a ‘0C’ which is a cancelled DDI
  • N = Advises return of a ‘0N’ which is a new or re-instated DDI
  • S = Advises return of a ‘0S’ which is a converted DDI

The most common type ‘N’ detail the new Direct Debit Instructions which have been submitted by you for lodgement but have been rejected either by BACS or by the payer/customer’s bank. There could be a number of reasons why a transaction has been rejected – for example, the cancellation of the instruction or the bank account being closed. The reason will be indicated using a ‘reason code’ so it is clear what action needs to be taken. For example, if the DDI has been rejected because the bank account is an invalid account type (reason code F), you will need to get in touch with the customer and ask for alternative bank details.  There is a fuller list of error codes on our website.

If you do not action these Bacs Reports you won’t be aware of which DDIs have failed to lodge. In turn this means that you might attempt a collection where there is no valid Instruction.

The ARUDD Report

If a Direct Debit collection cannot be completed, it will appear in an Advice of Returned Unpaid Direct Debit (ARUDD) report. As for AUDDIS reports, you will receive a reason code indicating why the collection could not be completed. Based on this, you will be able to take appropriate action. One point to note with ARUDD reports is the ‘Refer to Payer’ reason code. This means that the paying bank cannot advise of the reason the payment could not be completed. Refer to Payer can mean that there were insufficient funds in the relevant account, but this should not be assumed, and you will need to conduct further investigations.

The Consequences of not actioning these reports are simple – you don’t collect one or more Direct Debit, won’t necessarily be able to identify which transaction failed and won’t know how to take action to ensure you subsequently can make the collection.

The ADDACS report

Once a direct debit instruction has been set up, it may Change. The Advice of a Direct Debit Amendment And Cancellation Service creates an ADDACS report which advises a Service User of changes that are made to existing Direct Debit Instructions. These should be acted upon “immediately or within 3 working days of receipt”. It’s in your best interests to act quickly on receipt of an ADDACS report from BACS, otherwise you risk making incorrect collections and facing indemnity claims, loss of revenue and damaging your reputation as a business.

The DDICA Report

The report that no Service User wants to receive, the Direct Debit Indemnity Claim Advice (DDICA) Report contains details of any Indemnity Claims you face. This could be because you collected a payment early or in the wrong amount. Unless you have experience handling these claims, we would advise you to take advice from a specialist direct debit company about how best to respond

The above BACS reports all refer to Direct Debits. For those also using the Bacs Direct Credit service, you should be accessing your Direct Credit reports. You can read more details about these on our website.

If you have any queries about Bacs Reports, please see our website or contact us and we will be pleased to provide advice.