Wire Transfers and
Foreign Drafts
Cash Management, October 2014
What Is the Difference between a Wire
and a Draft?
• A wire sends money electronically to
the payee’s bank account. These
funds can be in U.S. or foreign
currencies.
• Bank drafts are checks payable in a
foreign currency and are mailed to
the payee.
Why Does UT Austin Use Wires and Drafts?
• To pay a vendor per the vendor’s
invoice or a contractual agreement.
• Cash Management transfers funds on
a daily basis for current operating
requirements.
Drafts
What Does a Department Need to Do in
Order to Pay a Vendor by a Draft?
• Complete a manual State of Texas Purchase Voucher
(STPV).
• Attach payment documentation such as invoices, APS
forms, RTA forms, and any correspondence from the
vendor.
• Two authorized signers on the department’s account must
sign the STPV if the payment is $500 or more.
• Send the STPV and documentation to Cash Management via
campus mail K5300,
Attn: Maria Gettier or Steven Hollifield
What Steps Does Cash Management Take to
Process a Department’s Draft Request?
•
Verify the availability of funds on *DEFINE.
•
If a 26-account is to be charged, then the accountant must initial the
STPV.
•
If an Authorization for Individual Services form is involved, the Office of
Accounting travel section must initial the STPV.
•
Verify departmental signatures on STPV.
•
Review the attached invoices and/or correspondence.
•
Obtain two authorized signatures for the UT Austin bank account.
•
Forward the request to the banking representative for processing.
Wires
What Are the Benefits of Sending a Wire?
• Speed
Domestic wires are received the same day the
funds are sent.
Foreign wires usually take between 48 and 72
hours.
• Relatively low cost
What Are the Different Types of Wires
That Cash Management Sends?
• Domestic wires - paid in U.S. dollars
and the destination is a U.S. bank.
• Foreign wires - paid in either U.S.
dollars or a foreign currency and the
destination is a bank located in a
foreign country (outside the 50
states).
What Does a Department Need to Do in
Order to Pay a Vendor by A Wire?
• Complete a State of Texas Purchase Voucher (STPV).
• Attach payment documentation such as invoices, APS forms, RTA
forms and any correspondence from the vendor.
• Complete a Wire Transfer Instruction Form or include wire
instruction documentation.
• Two authorized signers on the department’s account must sign
the STPV if the payment is $500 or more.
• Send the voucher and documentation to Cash Management via
campus mail K5300, Attn: Maria Gettier or Steven Hollifield.
What Information Should Be Included
In the Wire Instructions?
•
Bank name and address.
•
For domestic wires, the ABA or routing transit number.
•
For foreign wires, the SWIFT CODE.
•
The vendor’s or payee’s bank account number.
•
The vendor’s or payee’s name as it appears on the bank account.
•
For wires to Mexico, a CLABE and Sucursal number.
•
For wires to Brazil, contact Cash Management at 512-232-2108 for
additional instructions.
What Steps Does Cash Management Do to
Process a Department’s Wire Request?
•
Verify the availability of funds on *DEFINE.
•
If a 26-account is to be charged, then the 26 accountant must initial the
STPV.
•
If an APS form is involved, then Office of Accounting travel section must
initial the STPV.
•
Verify departmental signatures on voucher.
•
Review the attached invoices and/or correspondence.
•
Review the wire transfer form for pertinent wire information.
•
Obtain two authorized signatures for the UT bank account.
•
Forward the request to the banking desk.
What Happens After the Local Bank
Accountant Receives the Wire Request?
• Verify the wire instructions.
• Determine if the wire is domestic or foreign.
• The wire is relayed to the bank by authorized
cash management personnel. A secondary
approval is required by a signer on the bank
account before the bank can release it. A
confirmation number is given as a reference once
the bank has released the wire. This can take
two-six hours.
Foreign Bank Wires
• Per the bank’s wire instructions, our account will be debited
and the funds will be sent via SWIFT or CHIPS to the
receiver’s bank. SWIFT stands for The Society for
Worldwide Interbank Financial Telecommunications. It is a
private electronic message transfer system. CHIPS stands
for Clearing House Inter-Bank Payment System and is a
computerized network for the transfer of international
money.
• The receiver’s bank will credit the receiver’s account and
send a credit advice to notify the receiver about the wire
credit.
How Long Does It Take to Process a
Wire After the Request is Received?
• The initial process of the wire is done within 48 hours of
delivery to Cash Management.
• After the initial process, the wire request is sent to the bank
within 24 hours.
Note: A domestic wire is credited to the receiver’s account
the same day. A foreign wire can take up to three business
days.
• After the wire is sent by the bank, the VC1 is created and
approved within 48 hours.
Rejected Wires
• Reasons for rejection can range from incorrect information
provided for bank to the payee rejecting the wire.
• The bank will charge a rejection fee which varies from bank
to bank. Our bank will charge a fee of $5.00.
• There is a cost that varies from $5.00 to $15.00 to resend
the wire as when it was originally submitted (foreign or
domestic).
• Rejected wires could end up costing your department over
$100.00 related to currency conversions and fees.
Getting It Done
Helpful information for both wires
and drafts.
State of Texas Purchase Order Form
Forms are available on the Office of
Accounting web site. Listed as the
State of Texas Purchase Order Form
and Wire Transfer Information Form.
UT EIDs
• A UT EID must be provided when submitting a
wire or draft request for the individual/vendor
receiving the funds.
• To create an EID, a GGV request should be
submitted in *DEFINE.
• Vendor requests normally have a 24-hour
turnaround time.
• Any questions regarding vendor numbers,
contact Ramona Williams, 512-471-3273.
Object Codes
• It is very important to use the
correct object code.
• Go to the GO7 screen in *DEFINE for
object codes allowed on the account
being charged.
• Use object codes authorized for a
type C voucher.
Authorized Signers
• Any wire or draft $500.00 or more must have two
authorized signers.
• The signatures must be original.
• Use the GB1 screen in *DEFINE to determine
who is an authorized signer.
• This screen should also be used to verify the
available funds.
What Document is Done on *DEFINE to
Record the Wire Transfer or Draft?
• After the wire is sent, a VC1 document is created
by Cash Management to charge the department’s
account
• The department’s account is charged a wire fee.
Domestic wire - $9.00
Foreign wire - $15.00
• Fees for Foreign Drafts are:
$0-$2,999
$3,000-$9,999
$10,000 and over
Fee is $11.00
Fee is $26.00
Fee is $51.00
Completed Wires & Drafts
• The department contact will receive an FYI copy
of the VC1 document.
• The original records will be submitted for imaging
and will be available on the system.
• Cash Management retains a copy of all wire/draft
requests for three months or until verified on the
imaging system.
Questions
If you have any questions regarding
wire transfers or bank drafts, please
contact Cash Management.
Maria Gettier
512-232-2108
Steven Hollifield 512-471-8751