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Component documentationClearing Processing (FS-PE-CP)

 

You use this component for final processing of internal and external payment items during clearing and settlement.

Payment Engine supports the following clearing scenarios:

  • Direct clearing

    The financial institutions involved have a direct account relationship, typically a nostro or vostro account relationship.

  • Settlement between two financial institutions by means of a clearing institute

    Neither financial institution has a clearing account with the other.

  • Clearing with a separate cover provision

    Neither financial institution has a clearing account with the other. Although the financial institutions exchange information about the payment directly, the settlement amount is reached with the help of a third party.

Integration

If no errors occur in Payment Processing, final processing of a payment takes place in Clearing Processing. The type of processing depends on the information defined in Routing Control (route, clearing agreement, customer agreement, value date agreement) and the payment characteristics (payment order and payment item attributes such as currency, value date, and payment type). For more information, see Payment Processing (FS-PE-POP) and Routing Control (FS-PE-RP).

If an error occurs during clearing and settlement, the system sends a message with an error code to Exception Control. For more information about error handling, see Exception Control (FS-PE-EH).

The Clearing Processing component is typically connected to one or more account management systems over Account Management Proxy. For more information, see Account Management Proxy (FS-PE-AMP).

Features

The system processes payment items in one of the following ways:

  • Direct clearing

    • Direct posting of internal payment items

      The system forwards payment items directly to an internal account management system.

    • Single-item forwarding of external payment items

      The system forwards payment items to an outgoing channel in a new outgoing payment order and transfers them to File Handler for output processing. For more information, see File Handler (FS-PE-FH).

      Note Note

      For more information, see Direct Clearing.

      End of the note.

  • Queuing

    The system parks single items in a queue for later release.

    You can release payment items from a queue manually or automatically based on a time stamp. When you release a payment item from a queue, the system posts the sum to the relevant clearing account (nostro or vostro account).

    For more information, see Queue.

  • Collection

    Payment Engine uses the following collector categories to collect payment items when a recipient requests that the financial institution batch multiple payments into one sum instead of posting every single item to the account individually:

    • Customer collector for internal payment items

      The system assigns internal payment items to a collector based on the collection criteria defined in the clearing agreement. When the collector is finally processed, the system posts a single clearing item to an internal account and transfers a payment advice to File Handler for output processing.

      Note Note

      If the payment items have more than one value date, multiple payment items are created.

      If multi-collection is enabled, several payment advices are combined in one payment advice at a later point in time.

      End of the note.

    • Clearing collector for external payment items

      The system assigns external payment items to a collector based on the collection criteria defined in the clearing agreement. When the collector is finally processed, the system posts a clearing item to an internal clearing account (a nostro or vostro account) and transfers a new outgoing payment order to File Handler for output processing.

    For more information, see Collector.

Note Note

Queues and collectors both collect payment items; however, the system transfers payment items collected in queues as single, separate posting requests to an account management system for processing at a defined clearing time (date, hour, minute).

End of the note.

Payment Engine provides functions to perform the following tasks manually: