1

TPH Training - Day 3

 Learning Objectives
 Day 33
Objectives

 Understand the Posting Token and Payment

Generation

 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

Posting Setup
Acceptance 4
Debit Client
Payment Initialization
Conditions
Mapping and
Assign Weight YES NO
Debit Authority Incoming Routing And
Codeword and SLA or Book? Settlement
Determination
Debit Party
Determination Credit Party
Validate Credit Party
Auto Repair Determination

Debit Bank
STP Flow Conditions Credit Bank / Client Credit Bank
Conditions Conditions
Filtering Payment
YES Future RED
Warehouse or RCVD?
Date Determination
NO
Payment YES Future Due
Warehouse Date Balance Check

NO Duplicate Check
Fee Direction
Determination
Balance Reservation
Payment Finalization
with Charges Product
Determination
Posting

YES Future Send

Output Processed Component Processing Component
Warehouse Date
NO

Payment Generation
Prerequisites for Posting Scheme
5

• In order for the posting component to carry out the actual posting, the
transaction processing date should be the same as the day on which
Processing
Date today the payment is executed by the component.

• The outgoing channel cut off time should not be expired when the
component is invoked.
Channel Cutt • . Any payment received at or after the cut off time will be routed to
off expired start of STP module

• No active functional error

No functional • e.g. P&L account not found during Fee processing
error
Posting Setup
6
Posting Set
7

Define Posting Set:

 Company code

 The company code refers to the company processing the payment

 Posting product
 Posting product is derived from Product determination as different
products can have different Posting product (e.g. based on different
charge option, country).

 Message characteristics of the payment

 Message characteristics refer to the contractual agreements maintained
by the Bank for the debit and credit parties in the payment with respect to
posting of transaction charges.
Concept of tokens
8

 Account token

 Amount token

 Date token
Posting Setup
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Admin Menu > Payment Hub > Posting Scheme GUI > Booking Scheme
Posting Setup - Contd
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Posting Setup
11

 Channel cut off validation

 Selection of Posting Set

 Balance Local Currency Posting

 Selection of Statement format Name

 Informational charges

 Essentially in all cases where in we have calculated the charges but we

cannot book the charges immediately, we will store them as informational
charge.

 Route payment to beginning of STP

 If payment missed cut off

 DDA returns errors

Payment Generation
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Payment Generation
13

 Generate the outgoing message

 T24 Core delivery routine is responsible for mapping and formatting the
message and sending it to Swift Access Alliance(SAA).

 Generation of confirmations
Payment Generation
14

POR.TRANSACTION

- Holds the Transaction Related Details

POR.POSTING.AND.CONFIRMATION

- Holds the charges applied for a transaction(POR.POSTINGLINE, POR.STATEMENTLINE)

POR.SUPPLEMENTARY.INFO

- Holds Input Details of Payment (POR.ACCOUNTINFO, POR.ADDITIONALINF, POR.COVERINF,

POR.OUTBOUNDINFO, POR.PARTYCREDIT,POR.PARTYDEBIT, POR.PAYMENTFLOWDETAILS)

POR.AGREEMENT.AND.ADVICE

- Holds all information that are derived during payment processing.

(POR.ADVICE, POR.CLIENTCONDITIONS, POR.DEBITAUTHINFO, POR.DEBITBANKCONDITIONS, POR.CREDITBANKCONDITIONS,
POR.POSTADVICES)
Payment Generation
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 PSM.BLOB

- Message content and message type will get updated

 POR.AUDIT.TRAIL

- Audit trail

 Status code is updated as 687

SWIFT ACK/NACK Message
16

 TPH supports acknowledgement (ACK) and negative acknowledgement

(NACK) of messages based on which further processing is decided
 202C payments wait for ACK or NACK before sending the 103
 191 (Claim requests) will have status updated to ACK or NACK based
on the response (No influence on the payment processing though)

Syntax Ack Status

{451:0}{311:ACK Positive

{451:0}{108: Positive
{451:1} Negative
Payment Generation
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Perquisites to push an MT Message
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• Database and Application Server is running

• Message is placed in the Queue (i.e. *specific folder locally)

• Commands in the prompt for message send to TPH:

• TRUN PUSHMSG
• Enter the file name placed in the folder
• Input the Channel as “SWIFT”

• Received files in TPH will show the status

• Following Services are running

• TSM
• BNK/PP.ACCEPT.MAP.SERVICE(Acceptance & Mapping)
• BNK/PAYMENT.STPFLOW.HEAVY
• BNK/DE.INTERFACE.UPDATE
• BNK/SWIFT.OUT.LISTENER
Workshop – Incoming MT103
19

19
Process incoming MT103
20

Alfa Beta in US, wishes to pay USD 340 to his supplier Nike located in UK.

Nike holds an USD account with T24 Bank while Alfa Beta has an USD account with CITI
Bank in US, NY

CITI Bank, on behalf of Alfa Beta sends a MT103 to T24 Bank

CITI Bank shares a direct account relationship with T24 Bank.

T24BANK uses TPH (Temenos Payment System) for handling all types of payment
transactions and T24 acts as the DDA system (Demand Deposit Account)

T24BANK has setup TPH with multiple companies. One of them is with local currency GBP
and country United Kingdom (GB)

Transaction charges on the receiver’s side is NIL

Charge type used is SHA

Process incoming MT103
21

Ordering Alpha Beta

Customer

CITI Bank
Sender
(CITIUS33)

T24 BANK
Receiver
(DEMOGB)

Beneficiary
Customer Nike, UK
Process incoming MT103
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Process incoming MT103
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 Message Received and Mapped for Payment processing
Process incoming MT103
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 Payment transaction booked
Process incoming MT103
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 Payment Transaction Status
Process incoming MT103
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 Payment Audit Trail
Workshop – Receive and Process MT101
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27
Process Incoming MT101 with charges
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Ordering Customer Beneficiary Customer

(Nike) (Computer Solution)

MT101 MT103

Sender Bank T24 Bank Receiver Bank

(Bank of America, ( Credit Suisse, Switzerland)
US)
Process incoming MT101 with charges
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Nike in US, wishes to pay USD to their vendor Computer Solutions in Genève,
Switzerland, USD3,500.

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 TPH (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
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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
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 Process incoming MT101 – Message Acceptance and Mapping
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Receive Message – Status in PPT.RECEIVEDFILE details is updated as ‘RECEIVED’

Map Message – Status in PPT.RECEIVEDFILE details is updated as ‘MAPPED’

Processing MT 101 payment
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 Process incoming MT101 – Message Acceptance and Mapping
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Receive Message – Status in PPT.RECEIVEDFILE details is updated as ‘RECEIVED’

Map Message – Status in PPT.RECEIVEDFILE details is updated as ‘MAPPED’

Message received and stored in PRF.BLOB
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Message Received and Mapped for Payment processing

Create Payment Order
36

Once message is mapped, Payment Order is created Status 4

POR Tables are updated once Payment Order is created
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POR Tables are updated once Payment Order is created
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POR Tables are updated once Payment Order is created
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Processed Payment
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POR Transaction for Processed Payment
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POR Transaction for Processed Payment – Contd
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Weight Assignment
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Debit Authority Check
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POR.TRANSACTION
Payment Hub > Debit Authority
GUI > Netting Agreement List

PPL.NETTINGAGREEMNT
Check Debit Side Client Conditions
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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
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BalanceCheckRequired is set to
‘Y’, hence balance reservation has
happened for the payment
Balance Check Required
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If BalanceCheckRequired is set to
‘N’, no balance reservation will
happen for the payment
Direction and Product Determination
48
Routing & Settlement
49
Routing & Settlement
50
Date Determination
51
Filtering
52
Fee Determination
53
Posting Lines
54
Payment Generation – View Outgoing SWIFT MT103
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Audit Trail Updates
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ORDER ENTRY (OE)
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Order Entry (OE)
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 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)
59

 No of authorizers ( 4 eyes / 6 eyes principle)

 Actions:

 Authorize

 Reject

 Payment characteristics unchanged

 Error handling – Authorization process

ORDER ENTRY (OE)
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 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)

Workshop – Process Outgoing Payment via Order Entry
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Order Entry (OE)
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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 TPH (Temenos Payment System) for handling all types of
payment transactions and T24 acts as the DDA system (demand Deposit
Account)
T24BANK has setup TPH 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)
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Order Entry (OE) - Contd
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Order Entry (OE)
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Order Entry (POR.TRANSACTION) - Contd
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Order Entry (OE) – POR.SUPPLEMENTARY.INFO
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Order Entry (OE) – POR.POSTING.AND.COMFIRMATIOM
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Order Entry (OE) – POR.AGREEMENT.AND.ACVICE
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Order Entry (OE)
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User Menu > Payment Hub > Payment Approvals > Authorise Pending Payment > Authorise Order
Entry and Repair Payments > Pending Authorise Payments
Order Entry (OE)
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Order Entry (OE)
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Workshop – Process Book Payment via Order Entry
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Order Entry (OE)
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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 TPH (Temenos Payment System) for handling all types of
payment transactions and T24 acts as the DDA system (demand Deposit
Account)
T24BANK has setup TPH with multiple companies.
Charges are applied on both parties.
Order Entry (OE) – Book Payment
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User Menu > Payment Hub > New Payment Orders > Initiate Customer Transfer >
Book Transfer
Order Entry (OE) – Book Payment
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Order Entry (OE) – Book Payment - Contd
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Order Entry – Book Payment (POR.TRANSACTION)
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Order Entry – Book Payment (POR.TRANSACTION) - Contd
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Order Entry – Book Payment (POR.SUPPLEMENTARY.INFO)
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Order Entry – Book Payment (POR.SUPPLEMENTARY.INFO) - Contd
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Order Entry – Book Payment
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Order Entry – Book Payment
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Order Entry (OE) – Book Payment
84
User Menu > Payment Hub > Payment Approvals > Authorise Pending Payment >
Authorise Order Entry and Repair Payments > Pending Authorise Payments
Order Entry (OE) – Book payment
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Repair Process
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 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
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 Error handling

 Technical Error

 Non-Technical Error

 Accepted Warning error / Informational error

 Validate

 Submit

 Authorize

 Status codes
Repair Process
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Repair Process - Contd
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Repair Process
90
Repair Process
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Workshop – Process Repair Transaction
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Incoming MT103 to Repair
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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 TPH (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
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Ordering Alfa Beta

Customer

CITI Bank
Sender
(BARCGB22)

T24 BANK
Receiver
(DEMOGB)

Beneficiary
Customer Nike
Incoming MT103 to Repair
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Incoming MT103 to Repair
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Incoming MT103 to Repair
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Incoming MT103 to Repair (Repair Screen)
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User Menu > Payment Hub > Payment Inquiries > Pending Payment > Pending Repair Payments
Incoming MT103 to Repair (Repair Screen) - Contd
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Incoming MT103 to Repair (Reapir Screen)
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Incoming MT103 to Repair (Repair Screen) - Contd
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Incoming MT103 to Repair (Repair Screen) - Contd
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 Incoming MT103 to Repair
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User Menu > Payment Hub > Payment Approvals > Authorise Pending Payment >
Authorise Order Entry and Repair Payments > Pending Authorise Payments
Incoming MT103 to Repair (Authorise Screen)
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Incoming MT103 to Repair (Authorise Screen) - Contd
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Incoming MT103 to Repair
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Thank You
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