Solution:
This could happen if there are no associations available for the reason codes that are added in the system. Once associations are added, i.e., a reason name is linked to a resolution name under Accounting Settings > Verification Reasons > Associations, the reasons will show up under the drop-down menu while editing the rule sets.
For more information regarding on the Reasons, Resolutions and making an association between the two, check out this Zendesk article: How do I configure VV reasons and resolutions?
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