I was wondering if anyone has some good examples of when to use R03 or R04 when returning items where the account number is not valid. We have an auditor questioning why we use R04 when she believes we should use R03. I believe that the main issue is with the wording of account number structure valid or not valid.

thanks

You would use R03 if the account was not found. For instance, you receive an ACH transaction for John Doe, AC#1234567, ssn 123-45-6789, but can't locate a customer named John Doe with the same ssn. Account number is not found, and you have no John Doe customer.

You would use R04 if you received a transaction for John Doe, AC#1234567, but you have 3 different John Doe's but none have an account number with the one matching what was in the file, and while they only listed 7 numbers, your accounts have either 6 or 8 numbers.