Introduction to Payments Posting and Validations

The Payments Posting and Validations module supports Finnish standards related to payments. It maintains purpose codes as part of payments and associated narratives, and reflects this as part of transaction posting.

Click here to understand the terms and abbreviations used in describing this module.

Purpose Codes

In Finland, the requirement is to use specific purpose codes for crediting transactions. The purpose codes are used to distinguish the purpose of payments. The purpose codes are translated into a descriptive text to be used as a narrative, to reflect in the corresponding posting line in the system.

The benefits of this functionality are:

• Ability to reflect the description of the purpose code in the posting lines or narration as per description recorded in the Temenos Transact application.
• Ability to reflect the purpose code itself in the posting lines or narration if there is no description available for purpose code in the Temenos Transact application.

SEPA Additional Optional Service (AOS1)

According to Finnish bank practice, it is necessary to capture the server date in a transaction as the acceptance date for the debit account. This date will be passed on as narrative in the posting lines for the debit account and the credit account, in cases where it is applicable.

The benefits of this functionality are:

• Ability to capture the AcceptanceDate (date of booking the payment) as the server date. The captured AcceptanceDate is passed in the payment message if the routing channel is SCT (SEPA Instant Credit Transfer), SML and to the beneficiary if it is a book transfer. The original AcceptanceDateTime is populated also to the relevant R-messages.

Payment Confirmation Slip

Banks generate deal slips whenever a payment is initiated in a branch, and whenever a formal receipt for transactions is initiated in the online channels. This formal receipt is printed when it is ordered by customer.

The payment confirmation slip will be generated from the payment order in Finnish format, based on the nature of the transaction, and has to be given to the customer.

Two versions of the payment order application are provided to the bank, one for normal Single European Payments Area (SEPA) payments and another for foreign currency SEPA transactions.

The deal slip format for normal SEPA payments is attached to the SEPA version, and the deal slip format for foreign currency SEPA is attached to the foreign exchange SEPA version.

There are two different types of receipts that can be generated: the formal and the informal receipt.

The customer can order the formal receipt from the internet banking application and it is subject to a charge. The receipt is send to the customer via post.

The customer can also print themselves a receipt from the internet banking application from the account transactions (copy of receipt printed by customer), and it is free of charge.

Finnish Reference Number

The creditor reference number is used in the domestic and international payments. The creditor reference number will be received in the structured remittance information section in the PAIN.001, PACS.008 or PACS.003 messages. Using the creditor reference number, a payment can be uniquely identified and reconciled easier at the benefiary’s side.

The Finnish Standard Reference (FIPAVL.FINNISH.STANDARD.REF,INPUT) version is created to allow the user to store the structured reference number from the PAYMENT.ORDER application and its description.

The Standing Order Input (STANDING.ORDER,INPUT) version is created to allow the user to create standing orders with creditor reference number validation.

While initiating the transactions at the bank or branch level, if inputted, the creditor reference number will be validated.

The validation is done regardless of the inputted execution date.

If the creditor reference number provided is not correct, then Temenos Transact will not allow the branch user to initiate the transaction and will not allow the transactions to be saved in the unconfirmed status as well.

The error provided in the UI to the branch user will indicate that the creditor reference inputted is wrong and it needs to be corrected or removed.

If the creditor reference number is correct or valid, then Temenos Transact allows the initiation of the transaction, given that there are no other validations which are not successful.

The creditor reference number will be saved at the transaction level.

Any information provided in the unstructured format will not be included in the outgoing message forwarded by the bank, as the creditor reference number provided is valid, but it will be displayed in the payer’s transaction details and statement.

This functionality allows the user to validate the received or inputted creditor reference number, Finnish format or International Creditor Reference Number (RF) format, at the bank level, regardless of the channel for both outgoing and incoming transactions.

Automatic Processing of Recall Message

This functionality covers the automatic processing of the recall messages. If the message recall is sent by a Finnish bank and is initiated by the bank and the reason is duplicate or technical, then it will be processed automatically. In the case of all other situations, the processing will be manual.

When initiating the recall request (camt.56) by the originator bank, the bank has the possibility to configure the account, internal or customer account that will be used to credit the returned funds, in case of a positive response (pacs.004).

This functionality allows banks to handle the outgoing and incoming camt.056 request and perform certain validations and enrichments.

The following versions are introduced as part of this functionality:

• The Create Payment Recall (EB.QUERIES.ANSWERS,BANK.CREATE.FI) version allows users to enter the alternate credit account number at the time of initiating the camt.056 cancellation request.
• The EBQA Amend Details (EB.QUERIES.ANSWERS,INWARD.AMEND.FI) version allows users to amend the details for an incoming camt.056 cancellation request.