Jethro LTD: Funds Transfer (FT)

Jethro Ltd
FUNDS TRANSFER (FT)

Knowledge Impact Center
Copyright © 2008 - Jethro Ltd http://www.jethroltd.com

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FUNDS TRANSFER
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INTRODUCTION
FT is used for:
– effecting payments internally between
ACCOUNTS.
– moving funds externally for payments to and
from other banks using
• Local Clearing (National)
• SWIFT (International )
• Telex
• Mail payment order
• Bank Draft, etc.
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INTRODUCTION
•Payments initiation
•Levying Charges and Commissions
•Standing Orders
– move funds at predefined dates

– sweep account balances.
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INTRODUCTION
Module integrated with:

– Accounting
– Limit
– Delivery
Real Time Updation of

– Balances, Positions, Cash Flow, Limit
Overnight Processing of
– Standing Order payments
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INTRODUCTION
•Automation of Incoming Payments
– Local Clearing or via SWIFT
– Payment Verification
– Generates unauthorised Funds Transfer records
– Automatic authorisation up to a defined amount
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Payment Types
PAYMENT
TYPES
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Payment Types
•Some of the Payment Types supported in TEMENOS T24:
– Within the Branch
– Between Branches
– Cheques to banks or beneficiaries
– Between Banks via Local Clearing
– International Payments via Correspondents

• - SWIFT or Telex
– Use for the banks own payments

• - to pay suppliers
• - to pay expense claims to employees
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Payment Types
•INTERNAL
– AC : Account Transfer
•OUTWARD
– OC : Outward by Cheque
– OD : Outward by Draft
– OT : Outward by TELEX
– OB : Outward by Banker’s Payment
– BC : Outward by Local Clearing System
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Payment Types
•INWARD
– IC : Inward by Cheque
– IT : Inward by TELEX
– IM : Inward by Mail
– IB : Inward by Banker’s Payment
– BI : Inward by Local Clearing System
– BD : Inward local clearing Direct Debit
Payment
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Payment Types
•Payment Types are Defined in

FT.TXN.TYPE.CONDITION Table.
•Standard payment types.
•Defining new payment types.
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FT.TXN.TYPE.CONDITION
Transaction codes for entries
Charges & Commissions
Value Date restrictions
Production of advices
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Workshop
•Transfer RWF 10,000 between Accounts held by

two different Customers
•Enquire on the Account Balances using enquiries
– ENQ STMT.ENT.BOOK
– ENQ ACCT.ENTRY.STMT
– ENQ ACCT.BAL.TODAY
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Solution
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Solution
Click to Authorise
Click to delete
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Solution: View Transaction
Dr. & Credit A/c
Charge & Commission
Dr. & Cr. Advices
16
Solution: ENQ EM.STMT.ENT.BOOK.CUI
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Solution: ENQ EM.STMT.ENT.BOOK.CUI
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Workshop
•Transfer RWF 5,000 to an account.

• Authorise the transaction and then see the record.
• Confirm the accounting entries generated.

• Check delivery messages generated
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Solution
Capturing FT Transaction
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Solution: Viewing FT record
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Solution: Viewing FT record
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Solution: STMT records
23
PAYMENT
MESSAGES
&
ADVICES
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PAYMENT MESSAGES
•When funds is transferred the system produces Payment

Messages and accounting entries based on:
– Information input on a Funds Transfer record
– Routing information kept in the system
•Fields completed in a Funds Transfer govern the S.W.I.F.T

payment message type(s) generated.
•FUNDS.TRANSFER and its various versions can be used to

produce SWIFT messages and advices.
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MT202: Bank to Bank Transfer
•Sent by or on behalf of the Ordering Institution directly or

through correspondent(s), to the Financial Institution of the
Beneficiary Institution.
•Used to order movement of funds to the Beneficiary

Institution, hence Bank to Bank transfer.
•ALL PARTIES TO THE TRANSACTION MUST BE

FINANCIAL INSTITUTIONS
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MT202: Bank to Bank Transfer
•Our customer- George Bank, London wishes to

transfer $50,000 USD.
•Pay via Morgan Guarantee Trust, New York in

favour of Commerzbank, Frankfurt.
•Produces only a MT202.
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USD Transfer Bank to Bank - London to
Germany
900 Debit Advice
Instruction Commerzbank
George Bank TEMENOS T24 Bank Frankfurt
London
MT202
Correspondent Intermediary
Chase Manhattan NY MGT NY
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MT100: Customer Transfers
•Used for Customer Transfer
•This message instructs a funds transfer
•Sent by financial institution on behalf of ordering

customer, directly or through (a) correspondent(s), to
the financial institution of the beneficiary customer.
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MT100: Customer Transfers
•Our customer – Michael Dell wishes to transfer

USD 10,000 to Frank Bishop in New York who has
an account with the Bank of New York, New York.
•Produces only a MT100.
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USD Transfer Customer to Customer - London to USA
900 Debit Advice
Mr Frank Bishop
Instruction
Michael Dell TEMENOS T24 Bank
MT100
Our Correspondent Beneficiary Bank

MLBT NY Bank of NY
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CHARGES AND
COMMISSIONS
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Commission: FT.COMMISSION.TYPE
P&L Category for

posting
Transaction codes
for posting entries
Calculation Basis
Defining Currency
wise commissions
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Commission: FT.COMMISSION.TYPE
A different type of
Commission
Structure is defined.
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Commission: FT.CHARGE.TYPE
Either a flat charge

structure OR a
structure based on a
zone can be set-up.
Flat Charge Structure
Zone Based Charge

Structure
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Standing Order
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STANDING ORDERS
•Standing orders are used to generate Funds
•Transfer payments at predefined dates and with predefined

frequencies.
•Standing orders are also used for sweeping account balances

on a regular basis.
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STANDING ORDERS
•Fixed (FI) payments for same date and amount
•Direct Debit (DD) instructions to allow the

institution/bank to accept debits from other banks
• e.g. for insurance payments
•Funds Management based on balance levels

• automatic transfer of excess funds (BO)
• automatic transfer of funds to maintain a minimum
balance (BI)
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STANDING ORDERS
set up using STANDING.ORDER

– standard frequency input e.g M0203, BSNSS
run in Batch end of day

– generates Funds Transfers
– payments with error conditions will be put on
hold
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STANDING ORDERS
It generate ID by which each Standing Order is uniquely identified.
A maximum of 999 Standing Orders can be defined on the same

account. During the creation of new Standing Orders, this number
will be generated automatically by the System.
Balance Maintenance Standing Order types must always have a

number of 900 to 999 and for this reason, must be specifically input
by the User.
When the User wants to change an existing Standing Order, it will

be necessary to enter the complete Standing Order reference number
i.e. the Account Number and the sequential Standing Order number
separated by a . (dot).
Examples of Standing Order references are:
40
STANDING ORDERS
Examples of Standing Order references are:
11100005.1 The 1st Standing Order existing on the Account 11100005.
11100005.7 The 7th Standing Order existing on the Account 11100005.
444448.900 The Balance Maintenance Standing Order existing on the

Account 444448 where a minimum balance has been defined
below which funds will be transferred to the Account.
444448.901 The Balance Maintenance Standing Order existing on the

Account 444448 where a maximum balance has been defined
above which funds will be transferred out of the Account.
41
Workshops
Input an account transfer between two

customer accounts. Take note of the
reference number and enquire on both
account balances after authorisation.
Effect a BO/BI types of STO on

customer’s account
 Kindly study the BI & BO screen in

the next slides and identify the difference
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Workshops
43
Workshops
44
Question?
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Thank You
46

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Jethro Ltd

FUNDS TRANSFER (FT)

Copyright © 2008 - Jethro Ltd http://www.jethroltd.com

•Levying Charges and Commissions

– move funds at predefined dates

Module integrated with:

Real Time Updation of

•Automation of Incoming Payments

– Local Clearing or via SWIFT

– Automatic authorisation up to a defined amount

– Within the Branch

– Cheques to banks or beneficiaries

– Between Banks via Local Clearing

– International Payments via Correspondents

– Use for the banks own payments

•Payment Types are Defined in

•Standard payment types.

•Defining new payment types.

Transaction codes for entries

Charges & Commissions

Value Date restrictions

•Transfer RWF 10,000 between Accounts held by

•Enquire on the Account Balances using enquiries

Dr. & Credit A/c

Charge & Commission

Dr. & Cr. Advices

•Transfer RWF 5,000 to an account.

• Confirm the accounting entries generated.

•When funds is transferred the system produces Payment

– Routing information kept in the system

•Fields completed in a Funds Transfer govern the S.W.I.F.T

•FUNDS.TRANSFER and its various versions can be used to

•Sent by or on behalf of the Ordering Institution directly or

•Used to order movement of funds to the Beneficiary

•ALL PARTIES TO THE TRANSACTION MUST BE

•Our customer- George Bank, London wishes to

•Pay via Morgan Guarantee Trust, New York in

•Produces only a MT202.

900 Debit Advice

•Used for Customer Transfer

•This message instructs a funds transfer

•Sent by financial institution on behalf of ordering

•Our customer – Michael Dell wishes to transfer

•Produces only a MT100.

900 Debit Advice

Our Correspondent Beneficiary Bank

P&L Category for

Either a flat charge

Flat Charge Structure

Zone Based Charge

•Standing orders are used to generate Funds

•Transfer payments at predefined dates and with predefined

•Standing orders are also used for sweeping account balances

•Fixed (FI) payments for same date and amount

•Direct Debit (DD) instructions to allow the

•Funds Management based on balance levels

set up using STANDING.ORDER

run in Batch end of day

It generate ID by which each Standing Order is uniquely identified.

A maximum of 999 Standing Orders can be defined on the same

Balance Maintenance Standing Order types must always have a

When the User wants to change an existing Standing Order, it will

Examples of Standing Order references are: