8.4.6 STP of MT400 – Advice of Payment
STP of MT400 results in the liquidation of the sight/Usance bill (only for collections).
The system derives the contract reference number in the following manner:
- First, the contract reference number of the bill contract is checked using field 21. If the contract reference number is not found, the system will check for the User Reference number from field 21.
- If both Bill Contract Reference Number and User Reference Number are not found, the system will check for ‘Our LC Reference’ number in Field 21.
The system rejects the incoming record in the following cases:
- In case the reference number can not be found
- In case multiple bills are present with the same Our LC reference number
The following mappings are maintained between SWIFT tags in MT400 and the fields in BC
contracts:
| Status | Tag | Description | Fields of Export Bill | Remarks |
|---|---|---|---|---|
| M | 20 | Sender’s reference | ||
| M | 21 | Related reference | Contract reference | |
| M | 32A,B or K | Amount collected | Liquidation Bill Amt | |
| M | 33A | Proceeds remitted | Their charges | Difference of 32 and 33 |
| O | 52A or D | Ordering bank | ||
| O | 53A,B or D | Sender’s correspondent | ||
| O | 54A,B or D | Receiver’s correspondent | ||
| O | 57A or D | Account with bank | ||
| O | 58A,B or D | Beneficiary bank | ||
| O | 71B | Details of Charges | FFT | |
| O | 72 | Sender to receiver information | FFT | |
| O | 73 | Details of amount added | FFT |
As a result of the STP of the incoming MT400, the system creates a new version of the
bills contract and also triggers the liquidation event (LIQD) for the contract. All the
information in the following fields is stored as Free Format Text as under:
| Field | FFT Code | Advice |
|---|---|---|
| 72 | SND2RECMT400 | PAYMENT_ADVICE |
| 71B | 71CHGTOBEDED | PAYMENT_ADVICE |
| 73 | 73CHGTOBEADD | PAYMENT_ADVICE |
The system updates the following fields in the BC contract based on Field 72:
| 72 Field Value | BC Contract |
|---|---|
| ALCHAREF | Our charges refused and Their charges refused should be checked |
| OUCHAREF | Our charges refused should be checked |
| UCHAREF | Their charges refused should be checked |