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Financial Scenario 1.2
Traditional Invoice, Bundled Payment/Remittance,
Unbundled by VAB, Pre-2000 Version B
Financial Scenario 1.2 Overview (Use Case) Diagram
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Financial Scenario 1.2 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 VAB, with remittance details associated
with payment, relieving the liability (AP).
- VAB, A) forwards remittance detail to seller, B) converts payment
instructions into ACH transaction sending funds to seller’s
bank. Seller’s bank notifies seller of receipt of funds.
- Seller receives remittance detail and payment notification from
respective sources, relieving a 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
Blueprint (Draft Status) |
tbd
|
|
| 2. |
Buyer/payor issues
payment order to VAB accompanied by remittance detail |
820 |
PAYORD, REMADV |
PIP3C4
Blueprint (Draft Status) |
tbd |
|
| 3. |
Buyer/paying
VAB unbundles transaction sending
A) remittance detail to seller/payee
B) payment to seller/payee bank
|
820
|
REMADV |
PIP3C4
Blueprint (Draft Status) |
tbd |
|
| Appropriate
ACH transaction (CTX is designed to function as an envelope
to the 820) |
| 4. |
Bank informs seller/payee
of receipt of funds and associated details |
820
Optional transactions:
823, 824 |
PAYORD, REMADV
Optional transactions:
FINSTA, BANSTA |
PIP3C4
Blueprint (Draft Status) |
tbd |
|
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