ISO20022 is a payment format which has the capability to generate payment messages and instructions for payment institutes. Outsourcing the check issuance process can also be accomplished through an ISO electronic file where the payment institute can be electronically instructed to issue checks (both supplier & customer repayment checks) on behalf of the company.
Hence, check handling in ISO20022 encompasses 2 main aspects.
Outsourcing check issuance via ISO 20022 can streamline and enhance the efficiency of payment processing and also it offers various benefits to organizations such as;
Outsourcing check issuance through ISO20022 is supported for both supplier checks and customer repayment checks, which covers both issued checks in the IFS core solution. The setup of basic data, the flow of creating checks and the system effects are identical for both types of checks.
To create checks via ISO, the Payment Transfer Method of the ISO Electronic Payment Address should be set to CHK in the ISO payment method associated with the supplier/customer.
A separate Document Series ID should be created for Supplier Check & Customer Repayment Check in Payment Basic Data/Payment Documents, with the payment method ISO. The defined document series ID is exclusively used for creation of checks through an ISO payment order.
When it comes to the flow, the invoices, or the payment on accounts for which the checks should be issued are included in the payment proposal (Supplier Payment Proposal & Customer Repayment Proposal) from which the payment order should be created by giving an ISO payment method.
The standard ISO electronic file is not created during order creation but only when new checks are generated from the payment order.
In Supplier Payment Orders/Customer Payment Orders page, New Check Payment command will be visible where the execution of the command directs to the New Check Payment assistant, which displays check information.
The created checks will be reflected in Supplier Check/Customer Repayment Check page with the status Sent for Cashing. The Order Reference column of the check page will indicate the payment order from which the check is created, and the Payment Transfer Status column will indicate whether the check transactions in the payment order are Acknowledged or Unacknowledged. The created checks can be cashed or voided.
After successfully acknowledging the relevant payment order transactions, the check can be cashed.
The main tag that shows check information would be
| Message Item | <XML Tag> | Client Mapping |
| Cheque Type | <ChqTp> | Electronic Payment Address of the Supplier |
| Cheque Number | <ChqNb> | Check No of the Created Check |
| Cheque From | <ChqFr> | Name and the Postal Address of the Company |
| DeliveryMethod | <DlvryMtd> | Electronic Payment Address of the Supplier |
| DeliverTo | <DlvrTo> | Name and the Postal Address of the Supplier |
| InstructionPriority | <InstrPrty> | Electronic Payment Address of the Supplier |
| ChequeMaturityDate | <ChqMtrtyDt> | Payment Date of the Created Check |
Acknowledge Customer Payment Orders
Acknowledge Supplier Payment Orders
Customer Payment Orders
Customer Payment Proposals
Customer Repayment Check
Electronic Payment Address
Payment Documents
Supplier Check
Supplier Payment Orders
Supplier Payment Proposals
BDR for Payment Documents
Cash Check
Create Check Payment
Create Customer Repayment Order