Hi Lahiru,

Although MT940 is a generic standard of SWIFT, you will never find standard usage among banks. So, in IFS you can't find a generic file template for MT940. It is country or bank specific. In APP7.5, there is a MT940 version which was developed for Abnamro bank Netherlands. But, it does not mean that you cannot use MT940 in APP7.5 for other banks. You can create a new external file template (based on your requirement) using the standard file template and run in the same flow.

But, it is worth to note that external payment area has been nicely improved during APP8 (specially after APP8 SP2). From APP8 onward, you will get MT940DE version which was specially designed for German banks. If you compare APP7.5 and APP8, in APP8 you will get more flexibility than APP7.5.

Best Regards

Eranda

Hi Eranda,

Thanks for the reply.

This is regarding a customer in 7.5 who is interested in implementing ISO20022 for Supplier Payments and Matching the MT940 bank statements. I am trying to figure out how we can automate the matching of MT940 statements.

I tried to create to create a new Payment format from existing MT940NLABN and set the Party Type to “None”. 

My intention was to create the External Payment with Payment Type Code “Mixed Payment”. (As we need to load Payment Order transaction for acknowledgement). But it is loaded as “Customer Payment”.

Do you know how we can set it to “MIxed Payment” using the existing format?

Thanks

Lahiru

Hi Lahiru,

Sorry for the late feedback. In app7.5 you might find some challenges since, MT940NLABN file template is calling for api which is not intended to be written for payment order matching.

This is a complex process, I will try to brief.

The business processes starting from creating the payment order. You create payment order and send the file to the bank, then you will get MT940 file from the bank. Now, there should be a way to match MT940 file records with order ledger items. So, you have to make sure that EndToEndId XML tag which was available in your ISO20022 file is available also in MT940 (the bank is responsible to send it back without any alternation). This is the unique reference to identify the order ledger item. EndToEndId value is not available in APP7.5 in order_ledger_item_tab. So, although you get it back in MT940, there is no way to write a logic during external payment matching process. If I remember correctly, I established this matching logic, after APP8 SP2 via a bug correction. So, I think,  you have to go for a customization or convince customer to go for an upgrade .

Best Regards

Eranda

We are rolling out IFS 10 in a German subisdiary and they a highly automated payment flow.

As per above discussion, I am facing the same challenge. ISO and SEPA adds IFS Paymnet order reference in the EndToEndID tag but how do we verify that IFS can match that order / or order’s items by using the MT940DE fileformat ?

We have tried to replicate their current returnfile with IFS Payment Order but this is not recognized - yet. What we are looking is a way to know for certain the items in the Paymnet Order can be acknowledge by mean of loading the MT940 bank statment into External Payments interface. As the functions seems - for now - not to have an effect on the interpretation.