Referential Check & Initial Validations

Following parameters are validated with the static maintenances available for existence of the values:

Network code: Validated against the static maintenances (PMDNWMNT) available.
Currency Codes: Validated against open and authorized currency codes (CYDCDEFE). In Network Currency preferences, a record should be available for the Network, transaction type ‘Inbound’ and transaction currency.
Host Code: This field is checked against valid host codes available in Host Code maintenance (STDHSTCD)
Transaction Branch Code: This has to be a valid branch in core maintenance.
Customer Account : Credit account will be verified whether account records are open and authorized.
Debtor Bank Code: Counter-party Bank is validated based on local clearing bank code maintenance (PMDBKMNT).
Bank Network Identifier maintained for the network maintenance (PMDNWMNT) is referred by system for this. Based on the option maintained, Counter-party Bank Code is validated against SWIFT address or Local bank code available in PMDBKMNT. Whether the network is allowed for the bank also is validated from the same maintenance.

If any of the above validation fails, transaction is rejected with proper error code. This transaction will be available in Repair queue with error details.

Network Limit Validations

Amount of the transaction should be within the minimum and maximum defined for the Network, Transaction type ‘Inbound’ & transaction currency combination as maintained in Network Currency Preferences (PMDNCPRF).

In case the transaction amount breaches the transaction limit specified for minimum or maximum amount, an override will be logged and this transaction will be moved to the Repair queue.

IBAN Check

If ‘IBAN validation required’ flag is checked for the network, then IBAN verification for Debtor IBAN & debtor BIC is done against the IBAN format maintained for the respective country.

Duplicate Check

Identification of duplicate transactions done for a period as maintained in Source Maintenance.

The payment is moved to Business Override Queue for further investigation In case of a duplicate transaction.

Sanction Check

If sanction screening is required for the Network (for Inbound transaction type) and the customer, request is sent to External sanction system.

System verifies whether sanction check system is applicable in Network Preferences Maintenance, for ‘Inbound’ transaction type and initiates sanction check validation.

Charges/tax computation

For more information refer ‘Computation of Charge and Tax’ section in this user manual.

Exchange Rate Pick up

Exchange Rate pick up is based on the FX limits maintained in Network preferences for transaction type ‘Inbound’.

External Account Check

External account validation is done for the credit account in External Account Check (EAC). Customer and account status checks will be done by the external ECA system along with other validation checks.
If external account check fails, transaction is available in ECA Queue with error details received.

Debit and Credit Liquidation

For each transaction being processed, debit and credit liquidation are done to the respective
settlement accounts. Accounting details are handed off to the accounting system for posting
the entries.

Parent topic: ACH Inbound Transaction Processes and Validations