Financial Scenario I
Traditional Invoice, Bundled Payment/Remittance, Pre-2000 Version
B
Financial Scenario I Overview (Use Case) Diagram
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Financial Scenario I Overview Narration
- Seller generates and issues invoice to buyer, creating a receivable
(AR).
- Buyer receives invoice, creating a liability (AP).
- Buyer issues payment order to bank, with remittance details
associated with payment, relieving the liability (AP).
- Bank converts payment instructions into ACH transaction and
sends payment with remittance detail to seller’s bank.
- Seller’s bank then notifies seller of receipt of funds,
bundled with payment detail.
- Seller receives payment and remittance data, relieving the receivable
(AR).
- Seller applies payment, reconciling cash (AR).
| Step |
Description |
EDI Transaction/Message Recommendation
|
RosettaNet |
OAG |
Other |
| X12 |
UN |
| 1. |
Seller/payee issues
invoice to buyer/payor |
810 |
INVOIC |
PIP3C3
|
tbd
|
|
| 2. |
Buyer/payor issues
payment order to bank accompanied by remittance detail |
820 |
PAYORD,
REMADV |
PIP3C4 |
tbd |
|
| 3. |
Buyer/paying bank
sends payment to seller/payee bank, along with remittance detail |
Appropriate ACH
transaction (CTX is designed to function as an envelope to the
820) |
N/A |
tbd
|
|
| 4. |
Bank informs seller/payee
of receipt of funds and associated details |
820/PAYORD,
REMADV
Optional transactions:
823 FINSTA, 824 BANSTA |
PIP3C4 |
tbd |
|
|
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