What Is a Return To Maker Payment Request?

A return to maker (RTM) payment request is a notice you send to a customer when your bank returns the customer's payment for non-payment (i.e., NSF's).

If a payment has not been applied to any open items and it is added as a returned payment, the process will cancel the check and update the customer's balance and appropriate GL accounts for the payment amount. No debit memo is created unless a service fee is charged to the customer. If there have been applications made with the payment, the program will cancel the check and create a new debit memo for the amount of the open items, plus any additional charges that you want to assign to the returned payment.

When you release a return to maker (RTM) transaction:

• Customer balances are updated. This includes the company, customer group, and national account balances.

• Distribution records for service charges, disallowed adjustments, cash, received not applied (RNA), and accounts receivable accounts are created.

• The status of the payment and RTM is updated.

• The current period total for RTM's is updated.

• An open debit memo (prefix = RM) is created. These debit memos are considered open and are included in the aging listings and memo inquires.

• A notice work record is created for printing the RTM payment notice.