TEMENOS T24

Local Clearing

User Guide

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electronic or mechanical, for any purpose, without the express written permission of TEMENOS Holdings NV.

Copyright 2005 TEMENOS Holdings NV. All rights reserved.

Local Clearing

Table of Contents
Overview.................................................................................................................................................. 3
Setup ....................................................................................................................................................... 4
FT.LOCAL.CLEARING ........................................................................................................................ 4
Clearing System Information ............................................................................................................ 6
Funds Transfer fields........................................................................................................................ 6
General processing rules ................................................................................................................. 8
Sort Codes ....................................................................................................................................... 9
Defining Local Transaction Codes ................................................................................................. 10
Additional set up requirements .......................................................................................................... 12
ACCOUNT ...................................................................................................................................... 12
FT.TXN.TYPE.CONDITION ........................................................................................................... 12
Interfaces ............................................................................................................................................... 13
FT.TAPE.PARAMS ............................................................................................................................ 13
Running Clearing - FT.TAPES ........................................................................................................... 15
Processes for Incoming tapes ........................................................................................................ 15
Processes for Outgoing tapes ........................................................................................................ 15
Tracking tape processing ............................................................................................................... 16
Generic Accounting Interface ............................................................................................................ 16
File Layout - AC.ENTRY.PARAM .................................................................................................. 17
Error Management ......................................................................................................................... 19
Accounting Options - AC.ENTRY.PARAM ..................................................................................... 20
Entry Reporting - AC.INWARD.ENTRY ......................................................................................... 22
Deal/Transaction Processing ................................................................................................................ 24
Running the Interface ..................................................................................................................... 24
Running GAI in Batch Mode ........................................................................................................... 26
AC.ENTRY.PARAM DATA.ITEM details........................................................................................ 29

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Overview
Local Clearing is a suite of applications in the FUNDS.TRANSFER module, which allow T24 to
interface with local clearing requirements with minimal amendment.
These applications define:

• The characteristics of incoming and outgoing clearing tapes.

• The characteristics of clearing transactions.

• The characteristics of the T24 transactions which interface to clearing.

Generally, Local Clearing will be used to generate clearing tapes from T24 FUNDS.TRANSFER
input, or conversely to convert incoming clearing data into T24 FUNDS.TRANSFER transactions.
Local Clearing can also interface clearing to Delivery - generating T24 payment messages from
incoming clearing transactions, or diverting T24 delivery messages onto the outgoing clearing tape.
The local clearing suite of programs also provides a generic incoming accounting interface, which may
be used for Local Clearing payments, or for posting entries from internal or other external accounting
systems.
The applications specific to Local Clearing are:

Local Clearing specific applications

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Setup
FT.LOCAL.CLEARING
This is the top-level application in Local Clearing. A record of id SYSTEM must be present to allow
local clearing transactions to be used in FUNDS.TRANSFER.
Information defined here includes:
• Which clearing system is being used for T24 payments.
• Which Funds Transfer transaction types are allowed for clearing, and their characteristics.
• Bank’s own processing details for each branch - sort code, Nostro details etc.
• Customer no. for clearing - all Delivery messages for this customer will be diverted to Clearing.
• PTT (Post office clearing) processing details.
• Local reference information, where required by a specific clearing system.

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System parameters for Local Clearing application

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Clearing System Information

FT.BC.PARAMETER defines information about the data requirements of each clearing system.

Funds Transfer fields

Clearing requirements may differ from the validation rules already applied by the
FUNDS.TRANSFER application. This application can be used to specify additional validation when
clearing FUNDS.TRANSFER transactions are input.
Additional validation includes:

• Field lengths.

• No of multivalues.

• Validation against other files.

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Additional clearing requirements

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General processing rules

You can also specify more general rules:

• Local reference fields required.

• Whether foreign currency clearing is allowed.

• Sort code validation.

Each local clearing system may require special validation programs. These are specified in this
application. This is also where you specify which T24 Delivery messages can be diverted to create
Local Clearing payments.

General Processing Rules

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Sort Codes
All sort codes processed via Local Clearing will be checked against the records set up on
BC.SORT.CODE.

Sort Code Records

The length and type of the bank sort codes input here are checked against the input defined on the
FT.BC.PARAMETER file.
Information concerning the bank using the sort code can be specified, as can a link to the
CUSTOMER file.
It is possible to link a sort code to an exposure condition record defined on the
EXPOSURE.CONDITIONS file using the EXP.KEY field. (Please refer to the Teller Systems Table and
Application Accounting user guides for further information on the usage of exposure conditions). If a
link is set-up in conjunction with the TELLER application, you are able to effect the withholding for a
specified period of time a definable amount or percentage of cheques paid in to customers’ accounts
to allow for collection of the funds.
The amount of time that the funds are not available to the customer is normally dependent on where
the cheques are drawn on. If these cheques were drawn on banks within the T24 users’ country, the
number of days that the funds are withheld would not normally exceed five days. However, it is not
unusual for some cheques to be drawn on banks in other countries to require longer periods of time
before collection of the proceeds are confirmed.
It is also possible to default the value date on the TELLER, FUNDS.TRANSFER and
DATA.CAPTURE applications by specifying the VALUE.DATE.PRD field and using the sort code on
the application. This has been illustrated as under:

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Default value date using the Value Date Prd field

If the sort code 123 is used on the TELLER, FUNDS.TRANSFER or DATA.CAPTURE application
then the value date will be defaulted from the VALUE.DATE.PRD field to be the processing date + 5
working days.

Defining Local Transaction Codes

FT.LOCAL.TXN.CODES contains a list of transaction codes, which are valid for the local clearing
system specified in FT.LOCAL.CLEARING. Incoming clearing transactions are checked against the
transaction codes loaded here. The FT.LOCAL.TXN.CODES entry should correspond to the first
two characters of the clearing record.
Transactions will only be generated in FUNDS.TRANSFER, or in the generic accounting interface if
the GENERATE.FT flag is set in this application. Similarly, there is a flag to determine if the transaction
will be reported.
When the generic accounting interface is used, the TRANSACTION.CODE specified will be used in T24
when the external transaction code is supplied.

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Define local transaction codes

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Additional set up requirements

ACCOUNT
In the ACCOUNT application, at least one Nostro account must be opened through which all local
currency payments will be made. Separate accounts can be created for the different transaction types,
and for each branch of the bank if required.

FT.TXN.TYPE.CONDITION

This application is used to define all FUNDS.TRANSFER transactions, not just Local Clearing. A
description of how it works is in the chapter FUNDS.TRANSFER in this User guide.
There are three FUNDS.TRANSFER transaction types which are used exclusively by Local Clearing:
BC Outgoing Payments
BI Incoming Payments
BD Incoming Direct Debits

Clearing transactions will use the transaction codes and descriptions, date, charge and commission
defaults set up in these records.
Variations of these transactions can be defined, for example BCAA, BCAS etc.

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Define all Funds Transfer transactions using FT.TRANSACTION.TYPE.CONDITION

Interfaces
FT.TAPE.PARAMS
This file contains details of the tape files to be used for sending or receiving information from the local
clearing system.
Much of the information entered here describes the technical processing of incoming and outgoing
tapes - commands for tape loading, routines to call etc.

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Also defined are retention of reports, retention of downloaded data and validation to prevent duplicate
processing.

Define the parameters for tape files

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Running Clearing - FT.TAPES

The FT.TAPES application is used to process the tape files received from and sent to the local
clearing system. A process is run on a tape by verifying the appropriate record in this application. The
key to the application consists of the tape id - as set up in FT.TAPE.PARAMS and the process to be
performed eg STDIN-LOAD

Processes for Incoming tapes

Processes for Incoming tapes

Processes for Outgoing tapes

Processes for Outgoing tapes

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FT.TAPES Parameter Record

Tracking tape processing

Details of tapes currently being processed are kept in the application FT.TAPE.REFERENCE. For
incoming tapes, it is updated when a tape is loaded. For outgoing tapes, it is updated by the
GENERATE or REGEN processes. Once an incoming tape is updated or an outgoing tape is created,
the FT.TAPE.REFERENCE record is removed and a record is created in FT.TAPE.HIST.

Generic Accounting Interface

A generic accounting interface has been provided to allow the creation of accounting entries directly
from a flat ASCII file. The layout of the file, and options for booking the entries, is defined using the
application AC.ENTRY.PARAM. The interface can be run on-line, or during the end of day process.

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File Layout - AC.ENTRY.PARAM

The file supplied must be:

• An ASCII file.

• Of fixed length.

• Or a delimited (e.g. by commas) file.

• With CRLF line separators, each line of the file representing a separate record.

• Each record may be one of the following types: HEADER records, containing control information
(up to 9 allowed), TRAILER record containing control information, and DATA records containing
entry details. Each record type should be identified by a sequence of characters in the record.
The source record should be copied to the directory FT.IN.TAPE with the Id XXX.WORK, where XXX
is the name of the AC.ENTRY.PARAM record.
The elements comprising each record should be defined in the application AC.ENTRY.PARAM,
containing the starting position and length within the record. Each item may be identified as mandatory,
and may be validated by a defined validation routine. Standard system (IN2) validation routines may
be defined or customised routines. Each entry processed is also written to a working file,
AC.INWARD.ENTRY, the location of the extracted data in this file can also be specified.
As a minimum to successfully create accounting entries, the following elements must be supplied:

• Account Number or P&L category.

• Amount.

• Sign, provided directly or indirectly via a transaction code.

• It also recommended that the currency code is supplied for additional verification against the
account currency.
It is possible to define Local Reference fields in either STMT.ENTRY or CATEG.ENTRY as data
items (Value of DATA.ITEM specified as LOCAL.REF-NAME where NAME corresponds to a local
reference field name defined on the STANDARD.SELECTION table for STMT.ENTRY or
CATEG.ENTRY. The data values should pass any validation defined in the local reference validation
tables before they will be accepted. Multi-valued Local Reference field values should be separated by
the character ~ in the input.

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Accounting Entry Parameter Files for Header and Trailer Records

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Accounting Entry Parameter File for a Data Record

Error Management
The processing performs certain validation to maintain the integrity of the T24 accounting database.
Where a header / trailer are supplied, the following elements will be validated:
CONTROL.DATE - This must match the T24 system date in order to be processed.
CONTROL.TOTAL - This must match the number of DATA records supplied in the file.

Entry validation, which will cause the entry not to be processed includes:

• ACCOUNT.NUMBER or PL.CATEGORY not supplied, or both items supplied.

• Unable to determine the sign of the entry.

• VALUE.DATE of invalid format.

• Non-existent currency code supplied.

• Account currency code does not match the currency of the entry.

• Transaction code supplied does not exist.

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• Amount is not numeric.

• Mandatory items are not supplied.

Where an account number or PL category is not found, the entry will be posted to a suspense account.
Optionally a FUNDS.TRANSFER record (type AC) will be created with status HLD, to allow correction
of the incorrect entry after the file has been processed.
Overrides encountered when processing entries (e.g. unauthorised overdraft, posting restriction) may
either be:

• Automatically approved.

• Suspensed automatically.

Depending on the option selected.

Accounting Options - AC.ENTRY.PARAM

The generic interface must raise entries, which are balanced. The following options are provided for
raising balancing entries.

• Balance by currency, debit and credit, ignoring value date.

• Balance by currency netting debit and credit entries, irrespective of value date.

• Balance by value date and currency, debit and credit.

• Balance by value date, currency irrespective of sign, netting debits and credits.

• Balance per entry in entry currency.

Balancing entries may be raised to either a nominated account per currency, or to an internal account
of a defined category and department. The balancing (contra) entries will use definable debit and
credit transaction codes, together with an additional narrative.
In the case of P&L entries, an additional option will allow these entries to be treated as local currency
or not when raising balancing entries. If P&L entries are balanced by currency account entries,
position updates will result, whereas if treated as local currency there is no currency position.
The interface entries can be identified as interface entries by a separate SYSTEM.ID on the entry,
which is defined in AC.INWARD.ENTRY, field SYSTEM.ID.

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Accounting Entry Parameter for Balanced Entries

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Entry Reporting - AC.INWARD.ENTRY

The contents of the tape will be written to the entry work file AC.INWARD.ENTRY once extracted, to
allow enquiry / repgen reports to be written showing the contents of the file. This will have the basic
layout of the STMT/CATEG ENTRY file, but will additionally allow mapping of additional information.
The file will be populated whenever the interface is updated. A purge routine
(AC.INWARD.ENTRY.PURGE) will clear the enquiry file after the number of days specified in
FT.TAPE.PARAMS.
The reports to be produced via ENQUIRY.REPORT are specified in the AC.ENTRY.PARAM record,
field PRODUCE.REPORT.

Report showing contents of AC Interface Errors file

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Report showing contents of AC Interface Suspense account

Report showing contents of AC Interface Entries file

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Deal/Transaction Processing
Running the Interface
The interface will be invoked from the FT.TAPES application. In order to do this a record must be
defined for the interface in the application FT.TAPE.PARAMS.
The local routine to create the incoming file should be defined as the LOAD.CMD, or alternatively the
UNIX command required to copy the interface file or tape. When FT.TAPES is run with the action
LOAD, the interface file should be written to the directory FT.IN.TAPE, with the name XXXX.WORK,
where XXXX is the name of the FT.TAPE.PARAMS and AC.ENTRY.PARAM record. This will then
be copied to a file XXXX.NNNN in FT.IN.TAPE directory where NNNN is a sequence number allocated
to the file.
• The LOAD.ROUTINE AC.LOAD.INWARD.FILE should be defined. This will return information
concerning the incoming file, which will be stored in the FT.TAPE.REFERENCE / FT.TAPE.HIST
files for information. See APPENDIX.1 for DATA.ITEMs used for this extraction. Any other items
defined for Header and Trailer records may be viewed in ADD.INFO.
• The UPDATE.ROUTINE should be defined as AC.INWARD.FILE, the generic incoming interface
routine.
• The ENQ.PURGE.ROUTINE should be defined as AC.INWARD.ENTRY.PURGE.
• The VERIFICATION field should be set to YES to allow the interface to be run in extract only
mode, for examination of the file contents.

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Setting the parameters for the Interface

Online the interface may be run by:

1. “V”erify FT.TAPES using the action LOAD for the interface to create the interface file.

Create the Interface file using the LOAD action

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2. “V”erify FT.TAPES using the action UPDATE to create accounting entries from the incoming
interface file. If required FT.TAPES should be run with the action VERIFY to update only the extract
file AC.INWARD.ENTRY. This option is recommended particularly when defining the interface layout
initially in the application AC.ENTRY.PARAM, to ensure that the correct structure has been defined.

Verify FT.TAPES using the UPDATE action

Running GAI in Batch Mode

External accounting entries can be entered both before and after the calculation of interest and
charges on accounts.
To enter external accounting entries before the calculation of interest and charges on accounts, the
run details should be added to the BATCH record EOD.FT.TAPES. The job FT.TAPE.EOD should run
twice, once in LOAD mode, secondly in UPDATE mode. The value to run should be entered in the
DATA field, each value entered must exist in the FT.TAPES application as defined above steps (the
records may be entered using “I”nput rather than “V”erify).

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Enter external accounting entries before the calculation of interest and charges

In BATCH mode the interface will fail with a FATAL.ERROR and result in the batch stopping. This could
be in the case of file integrity (control date / total differences), or the interface file not being present. If
an error is encountered and the batch should continue, the DATA definition of the records to process
should be suffixed with the value “*NOFATAL”.
To enter external accounting entries after the calculation of interest and charges on accounts, the
batch job EB.GENERIC.ACCT in the BATCH record SYSTEM.END.OF.DAY3 can be used.

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Enter external accounting entries after the calculation of interest and charges

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AC.ENTRY.PARAM DATA.ITEM details

Use of DATA.ITEM element field in resultant entry:

AC.ENTRY.PARAM DATA.ITEM details

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AC.ENTRY.PARAM DATA.ITEM details

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AC.ENTRY.PARAM DATA.ITEM details

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AC.ENTRY.PARAM DATA.ITEM details

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