1
TPS Training - Day 3
Learning Objectives 3
Day 33
Objectives
Process STP Payment - MT101 with charges
Understand the need for order entry
Key in and process outgoing and book
payments using Order Entry
Understand the need for repair processing
Process payments from repair queue
Business Case 2 4
Receive and Process MT1014
Process Incoming MT101 with charges 5
Business Case 2 5
Ordering Beneficiary Customer
Customer
(Computer Solution)
(Nike)
MT101 MT103
Sender Bank T24 Bank Receiver Bank
(Bank of America, ( Credit Suisse, Switzerland)
US)
Process incoming MT101 with charges 6
Business Case 26
Nike in US, wishes to pay USD to their vendor Computer Solutions in Genève,
Switzerland, USD351,000.
Nike holds a USD account with T24 Bank, US while Computer Solutions has an
account with Credit Suisse, Geneva.
Bank of America, on behalf of Nike sends a 101 to T24 Bank requesting to make
payment on behalf of Nike to Beneficiary account in Credit Suisse.
Credit Suisse Bank shares a direct account relationship with T24 Bank.
T24 Bank uses TPS (Temenos Payment System) for handling all types of payment
transactions and T24 acts as the DDA system
Transaction charges are shared between the Sending and Receiving Bank i.e. Charge
type used is SHA.
T24 Bank credits the LORO account of Credit Suisse and sends MT103 to instruct
Credit Suisse to credit to Beneficiary Account in tag 59.
Process incoming MT101 - With charges 7
MT101MT103 Message Flow7
Ordering Nike, US
Customer
Bank of America
Sender
(BOFAUS33)
Receiver
T24 Bank
(DEMOGB)
Beneficiary
Credit Suisse
Institution
(CRESCHZZ)
Computer Solutions
Beneficiary
Customer
Process incoming MT101 - With charges 8
8
MT101 Message
{1:F01DEMOGBPXAXXX2769820912}{2:O1011235041221BOFAUS33XXXX03520236480411171235N}{3:{101:XXX}
{108:ICM041222AI00000}}{4:
:20:T24O34486
:28D:00002/00002
:30:160720
:21:T24TB0109170011
:21F:T24TESTING
:32B:USD351000,
:50H:/11193
NIKE
United States
US
:57A:CRESCHZZ
:59:/95802670
Computer Solution
GENEVE
SWITZERLAND
:70:Testing
:71A:SHA
-}
OUTLORO.TXT
Process incoming MT101 – Message Acceptance and Mapping9
Message Received, Accepted and Mapped9
Receive Message – Status in PPT.RECEIVEDFILE details is updated as ‘RECEIVED’
Accept Message – Status in PPT.RECEIVEDFILE details is updated as ‘ACCEPTED’
Map Message – Status in PPT.RECEIVEDFILE details is updated as ‘MAPPED’
Message received and stored in PRF.BLOB 10
10
Received message details
Message Received and Mapped for Payment processing
Create Payment Order 11
11
Transaction mapped
Once message is mapped, Payment Order is created Status 4
POR Tables are updated once Payment Order is created 12
POR Tables updated during mapping
12
Processed Payment 13
Processed Payment
13
POR Transaction for Processed Payment 14
POR Transaction14
Weight Assignment 15
Process MT101
15
Debit Authority Check 16
Process MT101
16
PPL.NETTINGAGREEMNT
POR.TRANSACTION
POR.DEBITAUTHINFO
Debit Party Determination and Validation 17
Process MT101
17
Debit account received as part of MT101 is validated with DDA and response is stored in
POR.ACCOUNTINFO
Check Debit Side Client Conditions 18
Process MT101
18
Debit side client conditions are referred to arrive at any special instructions given for the
client and process payment based on those instructions
Balance Check Required 19
Process MT101
19
BalanceCheckRequired is set to ‘N’, hence no
balance reservation has happened for the payments
Direction and Product Determination 20
Process MT101
20
Routing & Settlement 21
Process MT101
21
Validate Credit Account 22
Process MT101
22
Date Determination 23
Process MT101
23
Filtering 24
Process MT101
24
Fee Determination and Posting 25
Process MT101
25
Payment Generation – View Outgoing SWIFT MT103 26
Process MT101
26
Audit Trail Updates 27
Process MT101
27
Workshop - 2 28
28
ORDER ENTRY (OE) 29
29
Introduction
Order Entry (OE) 30
Need for a mid office payments screen
30
Client initiated payments (Book or Outgoing payments): some clients prefer ordering
transactions by for example sending a fax or making a phone call to the bank
instead of using a payments channel to initiate funds transfers.
On the incoming side Order Entry is mainly used as a last resort to still credit clients
in case some parts of the architecture (e.g. communication interface with external
channels) are not functioning because of a technical issue. Also incoming clearing
files which, for some technical reason, cannot pass through the mapping component
can be inputted manually after being routed to the exception queue and printed at
Operations.
Order Entry caters for those transactions which cannot be captured within the
boundaries of the table configuration for e.g. whether a low volume complex product
cannot be setup or whether a default processing rule needs to be overruled, Order
Entry is the component taking care of these exceptions.
In case a transaction is functionally incorrect but has already been booked, a
reversal of the payment can be done via Order Entry and the accompanying charges
can be rebooked on the client’s account.
ORDER ENTRY (OE) 31
Authorization principle & number of authorizers
31
No of authorizers ( 4 eyes / 6 eyes principle)
Actions:
Authorize
Reject
Payment characteristics unchanged
Error handling – Authorization process
ORDER ENTRY (OE) 32
32
Impose flag fields
Imposable fields
Output channel
Debit account number
Credit account number
Debit exchange rate
Credit exchange rate
Debit value date
Credit value date
Debit charge component + currency + amount
Debit charge account number + currency
Credit charge component + currency + amount
Credit charge account number + currency
Receiver’s Charge (debit side only)
Business Case 3 33
Order Entry33
Order Entry (OE) 34
34
Business Case 3
Boeing, wishes to pay his supplier ABC Corp located in London, for an amount of
GBP 9,000.
Boeing holds a USD account with T24 Bank while ABC Corp has a GBP account
with Barclays in London, UK
Boeing Instructs T24 Bank, requesting to make payment on behalf of them to
Beneficiary ABC Corp.
Barclays Bank shares a direct account relationship with T24 Bank.
T24BANK uses TPS (Temenos Payment System) for handling all types of
payment transactions and T24 acts as the DDA system (demand Deposit
Account)
T24BANK has setup TPS with multiple companies. One of them is with local
currency USD and country United Kingdom (GB)
Transaction charges are shared between the Sending and Receiving Bank i.e.
Charge type used is SHA.
Order Entry (OE) 35
35
Submit and Authorize flow
Order Entry (OE) 36
36
Submit and Authorize flow
Order Entry (OE) 37
37
POR.ACCOUNTINFO
Order Entry (OE) 38
38
POR.PARTYCREDIT
Order Entry (OE) 39
39
Submit and Authorize flow
Order Entry (OE) 40
View Outgoing SWIFT 40
Order Entry (OE) 41
Posting Details and Audit Trail41
Workshop - 3 42
42
Order Entry - Outgoing
Demo – Book Payment 43
43
Order Entry - Book Payment
Order Entry (OE) 44
44
Demonstration
Mr. Warner Buffet, wishes to pay Nike, for an amount of EUR 1000. Warner
Buffet is holding EUR account whereas Nike is holding USD account with T24
Bank.
T24BANK uses TPS (Temenos Payment System) for handling all types of
payment transactions and T24 acts as the DDA system (demand Deposit
Account)
T24BANK has setup TPS with multiple companies.
Charges are applied on both parties.
Order Entry (OE) – Book Payment 45
45
Order Entry – Book Payment 46
View submitted payment 46
Order Entry – Book Payment 47
POR.ACCOUNTINFO 47
Order Entry (OE) – Book Payment 48
Submit and Authorize flow
48
Order Entry (OE) – Book payment 49
Fees & Posting 49
Workshop - 4 50
50
Order Entry - Book Payment with Charge
Repair Process 51
51
Repair reason
Functional Error / Warning Error
HIT in the Risk Filtering
Imposed dates not aligned with boundary dates
Mandatory field not found
Routing Channel could not be determined
Invalid currency for the Account
Balance check unsuccessful.
Program name not found in ProgramsPerWeight
Repair Process 52
52
Release from Repair Queue
Error handling
Technical Error
Non-Technical Error
Accepted Warning error / Informational error
Validate
Submit
Authorize
Status codes
Repair Process 53
Repair Queue 53
Repair Process 54
Repair release 54
Repair Process 55
55
POR.AUDITREPAIRLOG
Repair Process 56
Repair Audit Information 56
Business Case 4 57
Incoming MT103 with NON STP 57
Incoming MT103 to Repair – Demonstration 58
58
Business Case 4
Alfa Beta in London, UK wishes to pay his supplier Nike located in UK, USD 999.
Nike holds a USD account with T24 Bank while Alfa Beta has an account with Barclays.
Barclays, on behalf of Alpha Beta sends a 103 to T24 Bank. However instead of providing
the correct account number 11193, the account number mentioned in tag 59 is 11113
Barclays shares a direct account relationship with T24 Bank.
T24BANK uses TPS (Temenos Payment System) for handling all types of payment
transactions and T24 acts as the DDA system (demand Deposit Account)
Charge type used is SHA
Since it is an incorrect account, transaction is moved to repair queue. Operator corrects the
account to 11193 from repair queue and submit the payment again.
Post authorization, payment is successfully processed STP.
Incoming MT103 to Repair – Demonstration 59
59
MT103 Message flow
Ordering Alfa Beta
Customer
CITI Bank
Sender
(BARCGB22)
T24 BANK
Receiver
(DEMOGB)
Beneficiary
Customer Nike
Incoming MT103 to Repair – Demonstration 60
60
MT103 Message
{1:F01DEMOGBPXAXXX9024629991}{2:O1031425131119BARCGB22AXXX89245950131311191435S}{3:
{108:BNKMT103SWBEN}}{4:
:20:INCOMINREPAIR
:23B:CRED
:32A:160722USD999,00
:50K:/GB10MIDL40051574128754
Alfa Beta
London
UK
:52A:MIDLGB22
:59:/1113
Nike
:70:TEST INCOMING REPAIR
:71A:SHA
-}
INCAREPAIR.txt
Incoming MT103 to Repair – Demonstration 61
61
TPS Demo
Process steps in TPS
• Data Base and Application Server is running
• Message is placed in the Queue (i.e. specific folder locally)
• “Trafix” system is Running for parsing and mapping the message
• Commands in the prompt for message send to TPS:
• TRUN PUSHMSG
• Enter the file name placed in the folder
• Input the Channel as “SWIFT”
• Received files in TPS will show the status
• Following Services should be running
• TSM
• SWIFT.IN.MSG.ACCEPT & MAP.MESSAGE.SWIFT
PAYMENT.STPFLOW.HEAVY
Incoming MT103 to Repair – Demonstration 62
Message Received and Mapped 62
Incoming MT103 to Repair – Demonstration 63
63
PENDING AND PROCESSED PAYMEN
Incoming MT103 to Repair – Demonstration 64
64
Release Payment from Repair
Incoming MT103 to Repair – Demonstration 65
Release Payment from Repair65
Incoming MT103 to Repair – Demonstration 66
Release Payment from Repair66
Incoming MT103 to Repair – Demonstration 67
Authorizing Repair Payment 67
Incoming MT103 to Repair – Demonstration 68
Authorizing Repair Payment 68
Workshop - 5 69
69
Process an incoming MT103
Thank You
70
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