Leveraging the New Balance & Reporting
Standard
What you Need to Know about BTRS
Timothy Johnson
Cash Express Svc Delivery SME
FIS Global
James Wills
Senior Business Mgr
SWIFT
David Repking
Information Reporting Prod Mgr
J. P. Morgan Chase
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Thank you to our Sponsors
Objectives
From this session you will learn:
1. A Vendor’s Perspective of BAI2 Challenges
2. How BTRS was Formulated
3. Key Elements of the new BTRS Standard
4. The BTRS Implementation Process for Banks and Companies
5. Various Tools Available from the X9 Organization
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5
Data Interchange History and Challenges
Chronology
•
1965: Holland-America Steamship Line used telex messages to transmit shipping manifest that were
then converted for use as computer input. Considered the first EDI (Electronic Data Interchange) †
•
1973: FTP Protocol Published †
•
1975: Treasury Management Services – Balance Reporting (BALDIS format) Multi Bank Reporting
processing.
•
1980: BAI1 – Bank Administration Institute publishes the Cash Management Balance Reporting
Specification , Version 1 †‡
•
1987: BAI2 is published †‡
•
2001: BAI2 final official update. Shortly after this release the standard is considered self-sustaining and
is no longer actively supported or updated. †
•
2008: Bank Administration Institute transfers copyright ownership of the BAI format to Accredited
Standards Committee x9, Inc. BAI established as an American National Standard. †
† source: Wikipedia (http://en.wikipedia.org/wiki/BAI_(file_format)
‡ source: BAI (http://www.bai.org/about-bai/reporting-codes.aspx)
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Data Interchange History and Challenges
A vendor’s perspective of Multi-bank Reporting
• Multi-bank defined
• The wild, wild west of Information Reporting
– 900 series Custom Type Codes
– Mixed formats
– Proprietary formats
– Inaccuracy of Data
BTRS addresses all these issues
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Balance and Transaction Reporting Standard (BTRS)
History
1.
BAI2 Copyright Transferred to Accredited Standards Committee X9, Inc. in 2008
2.
AFP Survey Administered in April 2010 by David Bellinger
3.
Responses from 1,116 Corporates concluded:
a)
Payments industry has evolved to the point where BAI2 is no longer effective
b)
Customization has resulted in large disparities between banks
–
–
–
c)
Inconsistent formats, syntax and transaction codes
Too many similar BAI codes
Too many unused codes
Very difficult to automate the data importation to internal systems
4.
BTRS Formulated & Approved by ANSI (2010 – 2012)
5.
BTRS Now Replaces BAI2 as the Industry Standard
6.
ASC X9 to announce future sunset date for BAI2
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X9 Workgroups
The Accredited Standards Committee X9 has the mission to develop, establish, maintain,
and promote standards for the Financial Services Industry.
X9 BAI2 Standards
Lead
Jim Wills, SWIFT
BAI Codes Update
Chair
David Repking, J.P. Morgan
Co-Chair Greg Malosh, Bank of NY Mellon
Language of the Standard
Chair
John Scully, Bank of America
Co-chair Bill Lundeen , Proctor and Gamble
Wire Remittance Structure Chair
Gina Russo, Federal Reserve Bank
Co-Chair Susan Colles, Bank of America
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The New BTRS
A Foundational Release
The Balance and Transaction Reporting Standard (BTRS) is intended to increase
standardization of and improve upon BAI2
Changes include:
1.
User Guide Modernized to include developments in banking and technology over the past 25 years
2.
Rationalization and Reduction of the number of supported transaction codes
3.
Globalization:
–
Additional SEPA transaction codes to support new European payment types
–
Double byte character set support through the incorporation of UTF-8
–
SWIFT and ISO 20022 XML interoperability – Code Mapping and Balance Inclusions
–
Modified currency rules to make them mandatory and allow for multi-currency
4.
New batch level (89) and invoice level (90) records providing additional information using ISO 20022
component tags to assist in reconciliation and straight through processing
5.
Additional structure to 88 record to support extended wire remittance in CTP payments
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The New BTRS
Highlights
Goal: BTRS is as backward-compatible to BAI2 as possible!
1.
What does NOT change
–
–
–
Syntax
No new positional fields
88, 49, 98, 99 Records (Hash totals)
2. File Header Record (01)
–
1 = BAI1, 2 = BAI2, and 3 = BTRS
3. Account Record (03)
–
–
–
Modernized the list of Status and Summary Codes
Core Balance fields and the Currency Code field are now required
Inclusion of total credits and total debits are now required
4. Detail Record (16)
–
–
–
–
Modernized the list of Detail Transaction Codes
Eliminated Funds Type “D” (Distributed Availability) – use Funds Type “S”
Created New Batch 89 and Invoice 90 Record Types
Instituted a new Standard format for Wire Remittance CTP (aligned with ISO field names)
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The New BTRS
Status & Summary Codes
Status Codes
1. 28 Codes Deleted
2. Opening Available (035)
= Balance on the date
reported
3. CD & PD Required
Balances
4. ISO & SWIFT
Interoperability
Summary Codes
Type
Status Code Descriptions
Code
010
Opening Ledger
015
Closing Ledger
020
Average Closing Ledger MTD
025
Average Closing Ledger YTD
030
Current Ledger
035
Opening Available
040
045
050
055
057
060
1. 92 Codes Deleted
2. 1 Summary Code per Detail
3. Record 03, always include
– 100 Total CR & 400 Total DR
4. Globalization
– “Float” to “Available”
Opening Available Next Business
Day
Closing Available
Average Closing Available MTD
Average Closing Available YTD
Investment Sweep Position
Current Available
ISO Family ISO Sub-Family SWIFT
OPBD
CLBD
OpeningBooked
ClosingBooked
Current
Day
:60F:
:62F:
ITBD
OPAV
InterimBooked :62M:
OpeningAvailable :65:
FWAV
ForwardAvailable
:65:
CLAV
ClosingAvailable
:64:
ITAV
InterimAvailable
:65:
Prior
Day
YES
YES
Yes
YES
YES
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The New BTRS
ACH Detail Codes
Type Code
Comparison of
BAI2 vs BTRS
ACH Codes
141
142
143
145
164
165
166
168
Green = BTRS
Red = Obsolete
169
257
441
445
447
451
455
464
466
468
469
557
BAI2 Description
ACH Credit Received
Item in ACH Deposit
ACH Concentration Credit
Corporate Trade Payment Credit
Preauthorized ACH Credit
ACH Settlement
ACH Return Item or Adjustment
Settlement
Miscellaneous ACH Credit
Individual ACH Return Item
ACH Concentration Debit
ACH Disbursement Funding Debit
ACH Debit Received
Preauthorized ACH Debit
Corporate Trade Payment Debit
ACH Settlement
ACH Return Item or Adjustment
Settlement
Miscellaneous ACH Debit
Individual ACH Return Item
BTRS
ACH SEPA Transfer
use 165
use new 89/90 records
use 165/166
use 165/166
ACH Received
ACH Originated Settlement
ACH Originated Settlement Return
ACH Miscellaneous
ACH Received - Return
ACH SEPA Transfer
use 455/466
use 466
use 455
ACH Received
use 455/466
ACH Originated Settlement
ACH Originated Settlement Return
ACH Miscellaneous
ACH Received - Return
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The New BTRS
ACH Detail Codes
110 Codes Deleted
Normalization
Globalization
–
–
Added SEPA Codes
Local Language (UTF8 – e.g., Chinese)
Type
CR
DB
CR
DB
CR
DB
CR
DB
CR
DB
CR
DR
Detail
Code
169
469
166
466
168
468
165
455
257
557
141
441
Summary
Code
140
450
167
450
167
467
140
450
256
450
140
450
–
–
–
Full, Clear set of codes
1 Summary Code Assigned to each Detail Code (1:1)
Interoperability between BTRS, ISO & SWIFT
Description
ACH Miscellaneous
ACH Miscellaneous
ACH Originated Settlement
ACH Originated Settlement
ACH Originated Settlement - Return
ACH Originated Settlement - Return
ACH Received
ACH Received
ACH Received - Return
ACH Received - Return
ACH SEPA Transfer
ACH SEPA Transfer
ISO
Domain
PMNT
PMNT
PMNT
PMNT
PMNT
PMNT
PMNT
PMNT
PMNT
PMNT
PMNT
PMNT
ISO
Family
RCDT
ICDT
RCDT
ICDT
ICDT
RCDT
RCDT
ICDT
ICDT
RCDT
ICDT
ICDT
ISO SubFamily
ATXN
ATXN
ASET
ASET
ARET
ARET
ACDT
ADBT
ARET
ARET
ESCT
ESDD
SWIFT
DDT
DDT
STO
STO
RTI
RTI
DDT
DDT
RTI
RTI
STO
STO
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The New BTRS
What if I need a new Code?
By instituting BTRS under “Continuous Maintenance”, changes are readily adopted.
Step 1:
Request the new code via X9 Website.
Step 2:
If urgently required, use 900 series codes
until X9 assigns a new code.
The New BTRS
New Batch and Invoice Reporting Record Codes
Requirement:
Indicate the items within a batch
with associated invoices
Challenge:
Double-reporting!
Solution:
Insert items as a continuation of
Transaction Detail
– 89 Batch Detail
– 90 Invoice Detail
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The New BTRS
New Batch and Invoice Reporting Record Codes
Batch Record 89 Allows you to insert information about the items within a batch.
Your Bank will need to include the 89 Record in your BTRS file and you will need to parse & load them
Example: A Credit Settlement of $200 Represents 2 Originated Batches Valued at $100 each
16,166,20000,S,20000,0,0,RRRRRRRRRR,9999999999/
88,ORIG CO NAME=YYYYYYYYYYYYYYYY,ORIG ID=5555555555,ENTRY DESCR=RTN OFFSET,ENTR
88,Y CLASS=CCD,TRACE NO=021000024641577,ENTRY DATE=110919,IND ID NO=1234567890,
88,IND NAME=NNNNNNNNNNNNNNNNNN,REMARK=EFT ITEMS OFFSET FOR FILE DATE MM/DD/YY
89,<CdtDbInd> CR <Ref> RRRRRRRRRR <Dt> YYMMDD <Amt> 100.00 <OrigNm> AAAAAAAAAAAA
88,<OrigId> AAAAAAAAAAA <AddtlNtryInf> DDDDDDDDDDDD <ActlDt> YYMMDD <BatNb> BBB1
88,BBBBBB <Nb> NNNNNNNNNNNN <Nm> MMMMMMMMMMMMMMMMMM <AddtlTxInf> XXXXXXXXX
89,<CdtDbInd> CR <Ref> RRRRRRRRRR <Dt> YYMMDD <Amt> 100.00 <OrigNm> AAAAAAAAAAAA
88,<OrigId> AAAAAAAAAAA <AddtlNtryInf> EEEEEEEEEEEE <ActlDt> YYMMDD <BatNb> BBB2
88,BBBBBB <Nb> NNNNNNNNNNNN <Nm> MMMMMMMMMMMMMMMMMM <AddtlTxInf> XXXXXXXXX
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Implementing the New Standard
A vendor’s perspective of Multi-bank Reporting
A Phased BTRS Implementation Approach
1.
Conversion of BAI1 and/or BAI2 to BTRS for Balance Reporting to Corporate
Customers (outbound)
2.
Conversion of BAI1 and/or BAI2 to BTRS for large scale FI Processing
3.
SWIFT MT conversion to BTRS
4.
Receipt and Processing of BTRS formatted files (inbound)
5.
BTRS for Corporate Customers and FI utilizing XML file structures and format
(inbound and outbound)
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The New BTRS
Simplifying the Implementation Process
Moving to the BTRS Standard is a coordinated effort by both Banks and Companies
1. Banks should:
–
–
–
–
Begin to offer the BTRS format within 12-18 months
Remap deleted Detail Codes using the Technical Implementation Guide
Remap Summary Codes to the standard associated to each Detail Code
Provide only codes on the list (Request New codes via X9)
2. You should:
–
–
–
–
Visit the X9 Website to get your FREE copy of BTRS and to learn more
Determine the impact to you back-office system for the new BTRS Format
Ask your banks for their plans to upgrade from BAI2 to BTRS
Tell your banks YOUR requirements for upgrading
(Remember, you asked for these BTRS improvements!)
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Resources
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Resources
X9 BTRS Website
http://www.x9.org/home/
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Resources
BTRS is the New Face of BAI2
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Questions
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Interested in attending a Webinar?
Represent your Company on X9 BTRS Committees?
Give your Business Card to or email Tom, Jim or Dave
Tim Johnson, FIS Global
Tim.N.Johnson@fisglobal.com
Jim Wills, SWIFT
james.wills@swift.com
David Repking, J.P. Morgan Chase
david.repking@jpmchase.com