MM.PAYMENT.

ENTRY
The Payment Entry Function is an on-line application that provides the user with two major
facilities:

(i) Input of 'manual' payment entries: i.e. a function that allows the user to instruct the system to
process a payment for a Money Market Contract.

(ii) Display of both manual and automatic payment entries: i.e. a function that allows the user to
view the major components in any pament that was generated by the money market system.

Input of Manual Payment Entries

This facility can only be used for Liability type contracts (except Fiduciary Deposits), that is,
where the user bank pays funds to a counterparty in respect of a deposit made by that
counterparty and where the funds in question are paid away for any date other than the normal
scheduled action due dates on that contract.

Money Market contracts are always liquidated automatically on scheduled due dates and so it
only makes sense to use this application PRIOR to the due dates to register a prepayment of
principal. Only Principal amount can be prepaid in the MM.PAYMENT.ENTRY facility.

Following validation/authorisation all necessary files are updated, accounting/limit entries are
passed and the delivery system is called to send the payment (if needed) together with the
appropriate advice confirmation.

It must be noted that once a payment entry has been authorised, it cannot be changed. Any error
will need to be corrected by the reversal of the payment entry and a new input with the correct
information. Only the last payment entry can be reversed.

This application will not allow the processing of payment entries for contracts which have been
defined with the INTEREST BASIS equal to 'S'.

Display of both Manual and Automatic Payment entries

Apart from 'manual' payment entries that are described above, the Money Market System also
writes 'automatic' payment entry records whenever it needs to make a payment. An example of
when this occurs is when a placement contract is loaded with a value date of 'today' and payment
instructions requiring a payment. Upon authorisation of such a contract, a payment is
'automatically' made by the system.

Another example is when a deposit matures during the 'off-line' processing. If the payment
instructions require a payment to be made then the Money Market System 'automatically' sends
the payment (via the delivery system).

If the user ever wants to see the major components of these 'automatic' payments (or indeed
review a 'manual' payment) then he can use the MM.PAYMENT.ENTRY application in (S)EE
mode. This displays the principal and interest paid, the tax and charges that were deducted, and
the net payment amount.

It should be noted that:

(i) update functions (e.g. INPUT) are not allowed for 'automatic' payments.

(ii) one automatic payment entry may result in one, two or no physical payment messages.

- 1 physical payment message is produced if all payment instructions of all components are the
same.

- 2 physical payment messages are produced if the principal payment instructions differ from the
interest payment instruction.

- No physical payment messages are produced if the customer of the nostro account being
credited is the same as the beneficiary customer. In this case the confirmation suffices.

CTIVITY

Each advice related activity within the Money Market and Loans and Deposits Modules is
identified by a numeric code which is hard-coded within the program. The appropriate code is
automatically inserted at this field by the system.

This field is linked to the LMM.ACIVITY file which is a list of advice related activities used by
the Money Market Module.

Each activity has been assigned a numeric code all of which are themselves hard-coded in the
program. These codes/activities must be loaded by the User in the LMM.ACTIVITY file.

These codes are transparent to the User except in the LMM.ACTIVITY and LMM.ADVICES
tables, i.e. the system recognises when an event occurs. Thus the field would contain an advice
related activity code that may have been passed to the E.B.S. Delivery Module as a result of the
payment entry in question.

The field is multi-value to allow for multiple entries.

The only activity codes generated by the MM.PAYMENT. ENTRY are:

1050 = Early Liquidation 2080 = Separate Customer Remarks advice

Validation Rules

4 digit numeric code. Internal field. This is a no input field.

ALONE.MERGE.IND
Specifies whether the information contained in CUST REMARKS (Field 44) is to be sent as part
of any standard advice/confirmation or whether it is to be sent as a separate communication.

The inclusion of this field allows the User additional flexibility in respect of communication of
text to the counterparty. Two values are defined for this field.

(1) Input of 'A' will mean that any text inserted at the previous field will be sent to the
counterparty as an entirely separate communication i.e. the advice generated according to the
activity code 2080.

(2) Input of 'M' will mean that any text inserted at the previous field will be included on any
standard form of confirmation/advice that would normally have been sent in connection with the
payment entry record in question i.e. the advice generated according to the activity code 1050.

Validation Rules

Single character input. The only input allowed is A (alone) or M (merge). Optional Input;
Default value = 'M'
CHARGE.ACCT.NO
This is the number of the account where the charges are to be debited.

Validation Rules

Standard Account Format. This is a no input field which can only have a value when the
payment is automatic (MANUAL.AUTO = A).
CHARGE.CODE
This field contains the key to the LMM.CHARGE.CONDITIONS record that contains the Profit
and Loss Category Code to be credited upon receipt of the charge.

Validation Rules

3 type A (Alphanumeric) characters. This is a no input field which can only have a value when
the payment is automatic (MANUAL.AUTO = A).
CHARGE.OUTS
Specifies the amount of charges outstanding on a contract as of the date that the payment entry

is created.

Validation Rules

1 to 14 type AMT (Standard amount format) characters plus - decimal point. This is a no input
field which can only have a vlue when the payment is automatic (MANUAL.AUTO = A).
CHARGE.PAID
Specifies the amount of charges that have been deducted from the principal payment.

When principal payments occur on asset contracts, the user may have specified that charges are
to be deducted from the payment. If this is so then the charge amount deducted displays in this
field.

Validation Rules

1 to 14 type AMT (standard amount format) characters plus a decimal point. This is a no input
field which can only have a value when the payment is automatic. (MANUAL.AUTO = A)
COMM.ACCT.NO
This is the number of the account where the fiduciary commission amount is to be debited.

Validation Rules

Standard Account Format. This is a no input field which can only have a value when the
payment is automatic (MANUAL.ATUO = A).
COMMISSION.OUTS
Specifies the amount of fiduciary commission outstanding on a fiduciary deposit contract as of
the date that the payment entry is created.

Validation Rules

1 to 14 type AMT (standard amount format) characters plus - decimal point. This is a no input
field which can only have a value when the payment is automatic. (MANUAL.AUTO = A).
COMMISSION.PAID
Specifies the amount of fiduciary commission that has been deducted from the payment.

When interest is paid on a fiduciary deposit, commission is typically deducted from that
payment.

Validation Rules

1 to 14 type AMT (standard amount format) characters plus a decimal point. This a no input
field which can only have a value when the payment is automatic. (MANUAL.AUTO = A).
CONTRACT.NO.
This field represents the reference number which uniquely identifies a particular contract.

When a User wishes to make a payment entry on an existing contract then he must identify that
contract at this field by input of the contract ID. When the payment entry input screen is
displayed, a 2 digit participant number will be added to the ID. In the Money Market
Application, this will always be '00'.

Validation Rules

The contract number is a twelve digit number prefixed with MM to represent Money Market in
the following format: YY DDD 99999 where: YY = Current Year DDD = Julian Day 99999 =
Sequence Number Input is mandatory.

If the contract is subject to SPECIAL interest conditions, i.e. INTEREST BASIS method 'S' is
employed, then it cannot be processed by MM.PAYMENT.ENTRY.

If the contract is a loan or a fiduciary deposit, then it cannot be processed by

MM.PAYMENT.ENTRY.
CURRENCY.CODE
Indicates the currency of the contract.

In the Money Market Module this field indicates the currency of the contract and will be the
same as the currency of the various accounts where any accounting movements in respect of the
contract will be debited or credited.

Validation Rules

3 type SSS (uppercase alpha) characters This is a no input field as the system will automatically
default to the currency of the contract.
CUST.REMARKS
This field is for User/Counterparty information purposes and will contain any specific notes or
text that you want to include on any advice sent to your customer.

This multivalue field will allow specific text or set of remarks to be included on any advice that
is sent to the customer.

Note: The MM.PAYMENT.ENTRY Application only produces 2 advices:

. One advice resulting from the activity code 1050 i.e. Early Liquidation,

. One customer remarks advice if input has been done in this field and the ALONE MERGE
IND is equal to 'A' (lone). This advice is produced by the activity code 2080.

Validation Rules

35 type A (alphanumeric) characters for free format text. Multivalue field (maximum of 4 lines).

INT.ACCT.NO
This is the number of the account where the interest payment is to be credited.

Validation Rules

Standard Account Format. This is a no input field which can only have a value when the
payment is automatic. (MANUAL.AUTO = A).
INT.CCY
Indicates the currency in which interest is to be paid/accrued for this contract.

This field will automatically be defaulted to field 82 INT.CCY on the MM.MONEY.MARKET

file.

Validation Rules

3 type SSS (uppercase alpha) characters. This is a no input field as the system will automatically
default to the interest currency of the contract.
INTEREST.OUTS
Specifies the amount of interest outstanding on a liability contract as of the date that the
payment entry is created.

Validation Rules

1 to 14 type AMT (standard amount format) characters plus - decimal point. This is a no input
field which can only have a value when the payment is automatic (MANUAL.AUTO = A).
INTEREST.PAID
Specifies the amount of interest that has been paid.

Validation Rules

1 to 14 type AMT (standard amount format) characters plus a decimal point. This is a no input
field which can only have a value when the payment is automatic. (MANUAL.AUTO = A).
MANUAL.AUTO
This field specifies whether the payment entry was input by a user ('M'anual) or was
automatically generated by the system ('A'utomatic).

Validation Rules

1 type A (alphanumeric) character. Only values are: A (automatic) M (manual).

OUR.REMARKS
This field is for in-house User information purposes only and will only contain relevant
comments about the contract or customer. Such remarks will never be printed on any external
document.

These remarks are purely for internal use and will not be the subject of any output despatched by
the bank, either as telegraphic or printed matter.

The main purpose of the field is to maintain a record of special instructions or restrictions which
apply to the payment entry or the Deposit contract to which it corresponds such as the name and
telephone extension number of the person dealing with the subject etc...

Validation Rules

35 type A (alphanumeric) characters for free format text. Multivalue field (maximum of 15
lines).
OVERRIDES

Contains all the overrides messages which the User agreed to during input.

During the validation stage of of a payment entry record the system may provide the User with a
series of screen override messages to indicate an anomaly, for example that the value date of the
proposed payment is not a working day.

In the event that the User confirms the override the full text of the actual override message will
be stored, for reference purposes only, in this multivalue field.

If, subsequently, the payment entry record is either fully displayed on the screen or printed, then
all override messages will be present. Thus if a more senior officer wishes to authorise data
which has been input his attention will be drawn immediately to any unusual aspects of the deal
which will be reflected in these override messages.

Validation Rules

Internal multivalue field.

PRIN.ACCT.NO
This is the number of the account where the principal payment is to be credited.

The User may identify the destination of the principal payment by using this field to insert an
account number which may relate to a customer account, a nostro account or an internal
account.

When the payment entry record is first displayed on the screen after having been identified by
the contract number, the system will have already inserted the principal liquidation account
number from the original contract at this field. If the User wishes to define a different account
from that specified on the contract then he simply overwrites the default account number with
the required account number.

Validation Rules

Standard Account Format. Optional input. The system will automatically display the principal

liquidation account as defined in the principal liquidation account field on the contract. If no
other input is done by the User, this account will be automatically credited with the amount
entered in PRINCIPAL PAID.

Any inactive account will request an override.

Any account with posting restrictions will request an override.

PRINCIPAL.OUTS
Specifies the amount of principal outstanding on a Liability type contract as of the date that the
payment entry is created.

This field displays the amount of principal outstanding on a contract as of the date that the
payment entry is created.

In the Money Market application, this field represents the amount of principal which will be
automatically liquidated by the system on the MATURITY DATE if no manual payment is
entered into the system. Any possible previous payment of principal will have been taken into
account.

Validation Rules

1 to 14 type AMT (standard amount format) characters plus a decimal point. This is a no input
field. The system will automatically insert the outstanding principal amount by referring to the
contract.
PRINCIPAL.PAID
Identifies the amount of principal that is being paid.

The User will employ this field to specify that amount which is to be paid on the contract as a
principal amount.

Note: It is obvious that any principal paid with a VALUE DATE smaller than the contract

MATURITY DATE or the next INT DUE DATE will have an effect on the interest amount of
the transaction which will be recalculated to take into account this repayment of principal.

Validation Rules

1 to 14 type AMT (standard amount format) characters plus a decimal point. Mandatory Input.

If INTEREST BASIS 'S' is employed in the contract then the payment of an amount of principal
(partial or total) is not allowed.

The amount inserted at this field must not exceed the total amount of principal outstanding on
the contract whether that amount is due or not.
RESERVED.1
Reserved for future use.
RESERVED.2
Reserved for future use.
RESERVED.3
Reserved for future use.
RESERVED.4
Reserved for future use.
RESERVED.5
Reserved for future use.
STMT.NO
A number generated automatically by the system which identifies a statement entry in respect of
the payment being processed.

The system will automatically insert a number into this field which will correspond to the
statement entry generated by the payment being processed. It must be noted that the
MM.PAYMENT. ENTRY facility will never generate a CATEG.ENTRY for Money Market
transactions.

Validation Rules

Internal multivalue field.

TAX.ACCT.NO
This is the number of the account where the tax amount is to be debited.

Validation Rules

Standard Account Format. This is a no input field which can only have a value when the
payment is automatic (MANUAL.AUTO. = A).
TAX.CODE
This field contains the key to the TAX table record that contains the category required to form
an account number to be credited upon 'receipt' of the tax.

Validation Rules

3 type A (alphanumeric) characters. This is a no input field which can only have a value when
the payment is automatic (MANUAL.AUTO = A).
TAX.OUTS
Specifies the amount of tax outstanding on a liability contract as of the date that the payment
entry is created.

Validation Rules

1 to 14 type AMT (standard amount format) characters plus - decimal point. This is a no input
field which can only have a value when the payment is automatic (MANUAL.AUTO = A).
TAX.PAID
Specifies the amount of tax that has been deducted from the interest payment.

If the interest on a liability contract is subject to tax then this field contains the amount of tax
that has been deducted from the interest payment.

Validation Rules

1 to 14 type AMT (standard amount format) characters plus a decimal point. This is a no input
field which can only have a value when the payment is automatic. (MANUAL.AUTO. = A).
TIME.DATE.STAMP
Confirmation that payment entry details have been passed over (where necessary) to the E.B.S.
Delivery Module for onward communication to the counterparty.

The Money Market's call to the T24 Delivery Module is acknowledged by the latter sending
back the ID that it has generated for the message. This ID takes the following form:

D19860409-392226

where D means a message is to be delivered, 1986 is the year, 04 is the month, 09 is the day and
then the code 392226 is the number of hundred of seconds since Midnight on that day.

Validation Rules

Internal field. Input is automatically generated by the system and consists of delivered marker in
conjunction with a date and time stamp.
TOTAL.AMOUNT.PAID

This field contains the net payment amount.

Validation Rules

1 to 14 type AMT (standard amount format) characters plus a decimal point. This is always a no
input field. It is calculated by the system by adding up all the components to pay and then
subtracting those to be deducted.
VALUE.DATE
Contains the value date applicable to the payment entry.

This field is where the User will specify the value date of the payment amount to be made on the
contract. In the absence of input by the User the system will default to the RUN date.

Validation Rules

1 to 9 type D (date format in the range 1950 - 2049) characters. Optional input (default value =
system date).

The date entered here must be greater than or equal to the value date of the contract.

The date entered here must not exceed the RUN date i.e. input of a forward value date payment
will not be allowed.

The date entered here must not be prior to the value date of the last payment. ( iv)Any back
value date inserted here must be greater than the last increase date of principal on the contract.

Any back-value date inserted in this field must be equal to or greater than the start date of the
current interest period.
T24 Common HelpText Fields