3.3.11 Settlement Method/Account Derivation

This step identifies the appropriate settlement method and corresponding account for each outbound transaction, based on predefined rules and transaction details.

For SWIFT CBPRPlus transactions, the system defaults Settlement Method / Settlement Account based on the correspondent account resolved or account entered.

Settlement Method
  • Value COVE is populated when a cover message is also sent (Applicable for pacs.008).
  • The value INDA is populated when the correspondent account is of type Nostro, and in the Currency Correspondent Detailed (PMDCYCOR), the Account Type is maintained as OUR.
  • The value INGA is populated when the correspondent account is of type Vostro, and in the Currency Correspondent Detailed (PMDCYCOR), the Account Type is maintained as THEIR.
Settlement Account
  • When the Settlement Method is INDA, the external account maintained in the Reconciliation External Account Detailed (PMDEXACC) against the correspondent account will be populated in the outgoing message only,
    • If more than one external account maintenance is done in Reconciliation External Account Detailed (PMDEXACC) screen.
    • If one external account is maintained in Reconciliation External Account Detailed (PMDEXACC) screen with the Populate Settlement Account in Sender Correspondent toggle enabled.
  • For the pacs.008 message where the Settlement Method is COVE, the Settlement Method, Settlement Account values in the pacs.009 cover message are populated using the same logic applied when the Settlement Method is INDA.
  • The system checks for settlement accounts that have an account type of OUR in Currency Correspondent Detailed (PMDCYCOR) and the settlement method as INDA in the Reconciliation External Account Detailed (PMDEXACC).
  • The system populates external accounts maintained in the Reconciliation External Account Detailed (PMDEXACC) screen against the Our Nostro Account in the outgoing message only:
    • If the system, does more than one external account maintenance in Reconciliation External Account Detailed (PMDEXACC) screen.
    • If the system maintains one external account in Reconciliation External Account Detailed (PMDEXACC) screen with the Populate Settlement Account in Sender Correspondent toggle enabled.
    • The system does not populate the settlement account if the account type is OUR and maintains one external account in the Reconciliation External Account Detailed (PMDEXACC) screen with a flag unchecked for populating an external account.
    • For settlement accounts with an account type as THEIR which means the Settlement Method is INGA, the system populates the settlement account with the Vostro Account.
  • For the pacs.008 message where Settlement Method is COVE, the settlement account population in the pacs.009COV payment follows the same logic as described for Settlement Method as INDA/INGA.

Parent topic: Outbound Transaction Processing