12.1.3 Bank Transfer Payment Template with Settle Transaction = No causes transfer to be stuck

We are on 12.1.3. We are testing the Bank Account Transfer process for the first time in a TEST instance.

We are not planning to settle the transfer through an AP payment. Our users will initiate the transfer process outside of Oracle, on the bank's website, and will the "create" (or record) the transfer in Oracle.

We would like to use a Template. In our template we have set Settle Transactions = No.

However, we find that all transfers that are created using this template are saved with the status of "Validated". We are expecting the system to save the transfer with the status "Settled", as we have chosen not to settle through Oracle Payments.