ESIDEL (European Steel Industry Data Data Exchange Language) Version 1.0

Transcription

1 ESIDEL (European Steel Industry Data Data Exchange Language) Inventory Payment switch cycle Version by EDIFER «XML Business Group» March 2004 by by EDIFER EDIFER «XML «XML Business Business Group» Group» March March

2 Payment Cycle By EUROFER - EDIFER Business Working Group Creation date: 15 March 2004 Last update: Reference: ESIDEL (Payment cycle v1.0).doc Version: 1.0 1

3 Table of contents 1. Payment cycle definition Scope Processes Use case: payment cycle 5 2. Business Process Definition Remittance process Scope Process definition Principles Use case: Remittance process Activity diagram: Remittance process Business collaboration Remittance process Business transactions and authorized roles Remittance process Business Process Definition Payment order process Scope Process definition Principles Use case: Payment order process Activity diagram: Payment order process Business collaboration Payment order process 18 2

4 1. Payment cycle definition 1.1. Scope In the payment cycle it is foreseen to transmit between the supplier and the customer the funds that are due for the supply of goods and services. At a certain point in time related to the invoice payment due date, the relevant information concerning the transfer of funds are exchanged between the parties involved. This document describes the payment order process and the remittance process for the transfer of funds in use by the European steel industry. In detail the following functions are part of the payment cycle: - The treatment of the remittance between the customer and the supplier - The treatment of the payment between the customer, customers bank, the supplier s bank and the supplier. The different invoicing procedures are not part of the payment cycle, but are detailed in the invoicing cycle. To simplify the understanding the parties involved are limited to customer, supplier and their respectively banks. In the total trade business each of the parties can have more than one role. For the payment cycle the customer can act as the customer, the consignee, the invoicee and the payer. The supplier covers the roles of the seller, the consignor, the sales agent or sales company, and payee. To ensure the payment of the invoices for the ordered, delivered, received or consumed goods and, or services are in line with the common practice used between the customers community sector and the steel industry only the following scenario is used. The remittance is sent between the customer and the supplier and is not integrated in the payment transactions between the customer, customers bank, suppliers bank and the supplier. 3

5 1.2. Processes European Steel Exchange Langage d échange Language des filières acier Basic Basic information information Ordering Ordering Scheduling Scheduling Shipping Shipping Invoicing Invoicing Payment Traditional invoice Self-billing invoice Remittance Payment order The Payment cycle is divided in two processes: - The remittance process This process supports the generation of the remittance by the customer to the supplier, and provides a detailed accounting relative to a payment, or other form of financial settlement, for the provision of goods and, or services provided by the supplier. - The payment order process This process supports the generation of the payment order by the customer to his bank, the exchange of information between banks and the exchange of information between the suppliers bank and the supplier for the transfer of funds. 4

6 1.3. Use case: payment cycle The use case for the payment cycle shows which Business collaboration use cases are used to compose the process: - The treatment of the remittance process - The treatment of the payment order process For each of the Business collaboration use case a description is provided in this chapter. Use case diagram payment cycle Payment cycle Supplier Payment cycle Remittance process Supplier Payment order process s bank Suppliers bank Figure 1. Use Case Diagram Payment cycle 5

7 2. Business Process Definition Remittance process 2.1. Scope The remittance process will be used to allow the customer to inform the supplier of detailed accounting information relative to a payment, or other form of financial settlement for the provision of goods and, or services provided by the supplier. The remittance will give an overview of the invoices, credit notes and debit notes that are taken in account in the payment order given by the customer to his bank for the transfer of funds to the supplier Process definition The remittance process is the mechanism by which a remittance is provided by the customer to inform the supplier about the transfer of funds. This process should happen in conjunction with the treatment of the transfer of funds between the parties and the respectively banks specified in the payment order process. An "electronic work environment (Electronic market place)" may be used as intermediaries to distribute the remittance. To support the remittance process the following message has been developed: - Remittance Principles The supplier has the obligation to reconcile the remittance against the outstanding invoices, credit notes and debit notes. If relevant the supplier should report to the customer inaccurate transfer of funds specified in the remittance. 6

8 2.4. Use case: Remittance process The use case for the Remittance process has the following business transaction: - Provide a remittance. Remittance process Remittance process Supplier Provide a remittance Supplier Figure 2. Use Case Diagram Remittance process 7

9 Use case description Remittance process Business process name Identifier Actors Description Pre-condition Postconditions Scenario Remarks Remittance EUROFER.: Remittance process, Supplier (Optional, additional roles Payer, Payee) The customer provides to the supplier for the settlement of the invoices, credit notes and debit notes for the received or consumed goods a detailed statement of the transfer of funds (remittance ) The supplier reconciles the remittance with the outstanding invoices, credit notes and debit notes. The supplier has provided goods and, or services according to the conditions set in the contract and, or order. The customer has received the goods and, or services, and the notifications for the payments were issued. Based on the remittance and the payment order the funds have been transferred to the supplier. For inaccurate remittance the supplier will inform the customer. Based on the agreed conditions between the parties, the customer will generate the remittance when payment orders are given to his bank for the transfer of funds to the supplier. Once the remittance received the supplier checks the remittance with the outstanding invoices, credit notes and debit notes. If there is any discrepancy found, the supplier shall inform the customer. 8

10 2.5. Activity diagram: Remittance process Supplier From invoicepayment system Issue remittance Remittance Receive remittance Reconciliation Check against outstanding invoices, credit notes and debit notes Not ok Ok Initiate the necessary information to the customer end Figure 3. Activity Diagram Remittance process Activity diagram description Remittance process Based on the conditions agreed between the customer and supplier, the customer shall initiate the remittance concerning the transfer of funds specified in the payment order process. The customer sends the remittance to the supplier. When the supplier receives the remittance, he checks the contents of the remittance against the outstanding invoices, credit notes and debit notes. The supplier checks the payment amount mentioned in the remittance with the amount received from his bank (see details in the payment order process). If there is any discrepancy detected by supplier, the supplier should inform the customer so that he is able to correct the payment. In any way the remittance will be submitted to the accounting department. 9

11 2.6. Business collaboration Remittance process Business Collaboration Identifier Description Partner Types Authorized Roles Legal Steps/Requirements Economic Consequences Initial/Terminal Events Scope Boundary Constraints EUROFER: Remittance The customer raises and sends a remittance to the supplier. When the supplier receives the remittance, he checks the remittance against the outstanding invoices, credit notes and debit notes and against the amount received. If there is any discrepancy detected the supplier shall inform the customer. In any way the remittance is submitted to the accounting department. Supplier (Payer) Supplier (Payee) None None Initial: the customer sends the remittance Terminal: the supplier receives the remittance and submits it to the accounting department To inform about the transfer of funds and the related invoices, credit notes and debit notes. Not defined yet The customer shall have full traceability of his remittance to make sure it has been received. Failing this technical acknowledgement, the customer shall re-issue his remittance message In a business collaboration agreement between the customer and the supplier, the way of using the remittance can be described. The following transactions concerning the remittance can be specified as: 1. The customer generates and sends a remittance, the supplier has to give an acknowledge of receipt of the remittance. 2. The customer generates and sends a remittance. No acknowledgement message is used between the parties to confirm the reception of the remittance. 10

12 Supplier START Generates a remittance [CONTROLFAIL] [SUCCESS] Remittance Process the remittance END Figure 4. Business transaction activity graph Remittance Form: Business Transaction Transition Table From Id : EUROFER: Remittance From Activity From Role Document To Activity To Role Guard Condition START N/A N/A Generate a NONE remittance Generate a remittance Remittance Process the remittance Supplier NONE Generate a remittance Generate a remittance N/A SUCCESS N/A Remittance received N/A CONTROLFAIL N/A Remittance not received 11

13 2.7. Business transactions and authorized roles Remittance process The goal of the Business transactions is to identify the individual transactions that implement the operations of a business collaboration. A transaction is made up of several activities and each activity has an authorized role in order to initiate that activity. Business Transaction Description Pattern Business activities and associated authorized roles Constraints Initiating/Requesting Partner Type Initiating/Requesting Activity Role Initiating/Requesting Activity Document The remittance is used for provide details of the transfer of funds to the supplier for outstanding invoices, credit notes and debit notes. Notification See EUROFER: Remittance Not defined yet (Payer) Remittance Business document - REMITTANCE ADVICE See EUROFER Message Guideline REMITTANCE ADVICE 12

14 3. Business Process Definition Payment order process 3.1. Scope This payment order process will be used to allow the customer to transfer funds through the bank to the supplier for a payment for the provision of goods and, or services provided by the supplier. Based on the payment conditions agreed between the customer and the supplier, the customer shall generate a payment order to his bank for the transfer of funds to settle outstanding invoices, credit notes and debit note for a certain due date. On receipt of the payment order the bank will debit the account of the customer and transfer the payment to the suppliers bank. The suppliers bank shall inform the supplier of the receipt of the payment by means of a credit and the customers bank shall inform the customer by using a debit. Based on an agreement between the customer and supplier with their banks, the banks have the possibility to provide periodically a financial status of the bank accounts Process definition This payment order process is the mechanism by which a payment order is given by the customer to his bank to transfer funds to the supplier to settle outstanding invoices, credit notes and debit notes. An "electronic work environment (Electronic market place)" may be used as intermediaries to distribute the remittance. To support the Payment order process the following message has been developed: - Payment order - Inter-banks messages - Credit - Debit - Financial statement Principles The banks have the responsibility to execute the transfer of funds specified in the payment order generated by the customer. The supplier has the obligation to reconcile the payment amount received against the remittance and, or the outstanding invoices, credit notes and debit notes. If relevant the supplier should report to the customer inaccurate transfer of funds. 13

15 3.4. Use case: Payment order process The use case for the payment order process has the following business transaction: - Provide a payment order to the customers bank - Provide the inter-bank messages for the transfer of funds - Provide a credit and, or financial statement to the supplier - Provide a debit and or a financial statement to the customer. Payment Order process Supplier Payment order process Payment order Inter-banks messages Supplier Credit / Financial statement s bank Debit / Financial statement Suppliers bank Figure 5. Use Case Diagram Payment order process 14

16 Use case description Payment order process Business process name Identifier Actors Description Pre-condition Payment order process EUROFER: Payment order process, s bank, Supplier, Suppliers bank The customer provides to his bank the payment order for the settlement of the invoices, credit notes and debit notes for the received or consumed goods The customers bank transfer the funds to the suppliers bank. The customer and the supplier are informed about the transfer of the funds by their banks. The supplier has provided goods and, or services according to the conditions set in the contract and, or order. The customer has received the goods and, or services, and the notifications for the payments were issued. Post-condition Based on the payment order and the remittance the funds have been transferred to the supplier. For inaccurate payments the supplier will inform the customer. Scenario Remarks Based on the agreed conditions between the parties, the customer will generate the payment order to his bank for the transfer of funds to the supplier. The use case is composed of the following processes: Process 1: Payment order to bank - This process is carried out between the customer and the customers bank by using the payment order message. Process 2: Transfer of the funds from the customers account to the suppliers account - This process is carried out between the customers bank and the suppliers bank and is supported by inter-bank defined messages. Process 3: Information of the transfer to the supplier - This process is carried out between the suppliers bank and the supplier by using the credit message and or the financial statement of the account. Process 4: Information of the transfer to the customer - This process is carried out between the customers bank and the customer by using the debit and, or the financial statement of the account. 15

17 3.5. Activity diagram: Payment order process s bank Suppliers bank Supplier From invoicepayment system Issue payment order Payment order Receive payment order Transfer of funds Execute payment order Inter-banking Receive Transfer of funds Receive debit Debit or Financial statement Raise Debit note / Financial statement Raise Credit note / Financial statement Credit or Financial statement Receive credit Reconciliation Check against remittance or outstanding invoices, credit notes and debit notes Not ok Ok Initiate the necessary information to the customer end Figure 6. Activity Diagram Payment order process 16

18 Activity diagram description Payment order process Based on the conditions agreed between the customer and supplier, the customer shall initiate the payment order giving instructions to his bank to transfer funds to the supplier. The customer sends payment order to his bank. When the bank receives the payment order, the bank transfers on the due date the funds to the suppliers bank. To support the transfer the bank exchanges information using inter-banking messages. Once the funds are received by the suppliers bank, the suppliers bank will generate the credit and shall send it to the supplier. At the same time the customers bank shall initiate the debit to the customer to inform him that the payment order is executed. The credit and the debit can be replaced by giving a periodically financial statement of the account of the customer and supplier. Once the funds received the supplier checks the paid amount against the outstanding invoices, credit notes and debit notes, and the information provided in the remittance. If there is any discrepancy detected by supplier, the supplier should inform the customer so that he is able to correct the payment. 17

19 3.6. Business collaboration Payment order process In the activity diagram the following collaborations are identified: - The collaboration between the customer and the customers bank for the execution of the payment order, - The collaboration between the customers bank and the suppliers bank to transfer the funds from the customers bank account to the suppliers bank account; - The collaboration between the suppliers bank and the supplier to inform about the funds received on the suppliers bank account, - The collaboration between the customer s bank and the customer to inform him that his bank account has been debited for the amount specified in the payment order. Due to the fact that the transactions involved in these collaborations are financial messages, Eurofer decided not to develop these messages, but to recommend the usage of the messages defined by the banking sector through SWIFT. Therefore no further details are presented about the details of the different business collaborations and the business transactions involved. 18

20 All information provided in this documentation is provided "as is" without any warranties of any kind including warranties of accuracy, fitness for a particular purpose, or non-infringement or intellectual property. EUROFER shall not be held responsible for any errors or any loss resulting from any use of this document or the specification herein. The materials contained in this document may be copied provided that ALL copies retain the copyright and any other proprietary notices contained on the materials. No material may be modified, edited or taken out of context such that its use creates a false or misleading statement or impression as to the positions, statements or actions of the publisher EUROFER. All rights reserved. All countries 19