Clearance Manager sends Clearing Notification to each actor who has to remit funds and each actor with who the Clearance Manager will be settling funds. Thus the Clearance Manager can complete the clearing process and transfer funds accordingly. Each Clearing Notification is destined to either Remittance Payer or Settlement Payee, who in turn have to either pay money to the operational account of the Clearance Manager or receive money from the operational account of the Clearance Manager.
1. Clearing Notification with Remittance Payer
notification sent to the Remittance Payer providing information about the total amount that has to be remitted and the date it has to be remitted. It includes list of all relevant clearance transactions. The Remittance Payer will then have to make the payment to the Clearance Manager operational account including in the bank transfer order the “Clearing ID” provided in the Clearing Notification.
2. Clearing Notification with Settlement Payee
notification sent to the Settlement Payee about payments made to the payee’s bank account and the date the funds had to be settled. Where possible the “Clearing ID” from the Clearing Notification is included in the bank order of the Clearance Manager to help the Settlement Payee identify the payment received in its bank account and to do accounting reconciliation.
The information in the Clearing Notification includes detailed data at transaction level and aggregate level data. The message includes all clearances that were supposed to be cleared at that date using the Clearance Status Code to define each transaction’s status. The value in the “Non-Settled Amount” represents either the remaining amount to be settled or the amount to be written off, depending on the status code of the Clearance.
Clearing ID is ten characters long, where if the first three characters are “BIL” it means that the payment is bilaterally arranged payment outside of the operational account of the Clearance Manager. The remaining seven characters are random alphanumeric string.
Information about the transfer of funds in relation to the settlement is provided in the “Funds Transfer” complex data element. This includes:
- the method of transfer – for example transfer to a bank account or transfer to other clearance account.
- the type of transfer execution – for example direct credit.
- the value date
- the account that was credited
In case of discrepancies between the definitions given in the xsd released as part of the standard and the definitions in this implementation guide for the same concept or data element it is the definition in the xsd that is valid. XML messages must be validated with the corresponding xsd.
a) Sample ClearingNotif XML
(in this sample the Cash and EasyPay payment methods have the same settlement date and are included in the same ClearingNotif. This is only possible if EasyPay is not considered separate settlement process with its own bank transfer.)
Please see IATA_PaymentRemittanceTransferNotif.xml