MT940 bank File Format

By: Cashbook  05/12/2011
Keywords: Accounts Receivable, erp systems, Reference Data

Testimonial

MT940

MT940 is a common bank statement file across Europe. Cashbook has an integrated MT940
solution allows companies to upload a bank statement and algorithms are applied so that cash
receipts and manual payments are automatically applied to customer invoices. The module can
automate anything from 30-90% of your daily cash transactions.
The process begins with uploading a MT940 (or other bank format for that matter) bank
statement into Cashbook. If the bank statement includes good quality reference data our solution
can automatically suggest invoice allocations for accounts receivable transactions. We also
suggest manual journal postings as well based upon the reference data in the bank statement.
The word “suggest” is used as no automatic postings are completed, everything must be
approved by the appropriate credit controller.
Some bank files do not provide standard, mandatory reference data records, specifically record
86, in the MT940 file format. Bank contacts should be requested to improve the data supplied.
The variation in automation from 30-80% depends upon the bank that your business is using and
the way your customers pay you. We can easily assess the level of automation you are likely to
get at no charge if you supply an example of one of your daily bank statements. This module can
be implemented in the Benelux region or anywhere across Europe. Our experience has been
excellent (70-90%) in Sweden, Finland, Norway, Germany, Switzerland, Austria, and The
Netherlands, okay in France and Belgium (30-50%) and across the UK the auto-matching is
limited (10-20%) due to the quality of the bank statement data. The good news is with SEPA
changes to the structure of payment files, our auto-matching with the MT940 bank statement files
will result in higher automation percentages in the future.
Features:
  • JDBC access to multiple ERP systems either directly integrating with system data or via
    staging databases
  • Can be adapted for any Bank globally
  • Standard bank statement upload process no matter what bank/currency or ERP you are
    using
  • Supports algorithms across customer numbers, invoices, sales orders, customer bank
    accounts, pick list, packing numbers, customer purchase orders, shipment numbers, sales
    orders
  • Uploads and stores multiple bank accounts, bank statement numbers, opening and closing
    bank balances
  • Excellent validation rules around postings
  • Reports on all cash automatically applied and manually matched
  • Can alias bank statement information that is incoming to improve auto-matching and not-
    upload specific bank account details
  • Caters for partial payments, credit/debit notes, unallocated payments, multiple discount
    terms, foreign exchange gain or losses, write-offs, bank charges, suspense account
    postings
  • which enables usage with high and low volume customers
  • Multiple sites, environments or ERP systems can be catered for
  • Where codes or ‘character strings’ are used to identify transaction types and / or amounts
    – example ‘SKT’ = discount – we will automatically code these references to specific
    general ledger accounts
  • Ability to view all bank statement information through Cashbook journals

Benefits:
  • Elimination of manual effort allows companies to allocate more staff time to other higher-
    value activities
  • Creates the ability to run Shared Service Centers without the need for a common ERP
    platform or version updates
  • Global companies can employ a global solution for all sites across multiple different banks

Project Example:
The matching process will incorporate the following rules:   
Only numeric characters will be searched. Any non-numeric will be ignored with the exception of
special characters ‘ + ’ (plus), ‘ - ‘ (minus or hyphen), ‘ / ’ (slash), ‘ , ’ and ‘ ‘ (space).
  • The process will start from the left and if no successful invoice matches are found then the
    search will end
  • Identification of the AR Customer for each AR receipt is dependant on finding a complete
    document number that falls within the range of open documents for the company/entity. If a
    complete valid document number is not found, there will be no proposed matches for the
    transaction
  • Invoice allocation records for each search will be restricted to the company/entity of each
    Bank Account
  • The proposed Matches will apply to invoices, credit notes and debit notes (all records with
    balances outstanding on the invoice allocation file)
  • Discount will be assumed in all cases. Cashbook will analyse from the customer payment
    the discount due date of the invoice and accept the discount if it is within a two days
    tolerance of the due date
  • Any matches proposed by Cashbook’s MT940 solution will be available for amendment by
    the users. No updates take place in AR or the general ledger until the full Bank Statement
    journal is posted
  • At each search step, as invoices are matched, the total amount of the transaction will be
    compared to the amount to be allocated against the selected invoices (including discount).
    If the remaining amount to be allocated (whether positive or negative) falls outside the
    defined variance, the next search step will be applied
  • Searching will continue over the reference details until all references have been matched,
    even if the remaining amount equals zero. This will avoid omitting matches on invoice and
    credit notes of equal value
  • Invoice ranges must include “-“ (with no spaces) between the two numeric fields. This
    separator shall be defined in a Java Bean Discriminator




















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Cash Receipts

At the helm of cash
automation for over 18
years

The new version of Cashbook is really
an improvement to the old Cashbook in
Greenscreen.
It is a much more stable program, and a
user friendly product.
Margreet Peverelli – Cashbook User, Skiffy
BV

© 1992 - 2011 Cashbook Limited. All rights reserved.                                                                                                                                                                                   

Keywords: Accounts Receivable, Bank Statement, cashbook, Customers Pay, erp systems, Invoice Allocations, Reference Data,

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