Accounting Netting On Nostro Account Is Not Happening Even Though Main Txn Netting Flag Is Checked. (Doc ID 2807254.1)

Last updated on SEPTEMBER 15, 2021

Applies to:

Symptoms

On : 14.4.0.0.0 version, Implementation Support

Case Description :
Accounting netting on Nostro account is not happening even though Main Txn netting Flag is checked.
when a incoming Cross Border Customer transfer has to be returned back to the bank due to some reason, an outgoing Cross border payment should be created manually and charge should be collected .Currently two accounting entries are posted on the nostro account(One for crediting transaction amount and one for debiting charge amount). Charge Bearer is given as Beneficiary.
Transaction amount:500 EUR
Charge:30 EUR
Current behavior:
Debit customer:500 EUR
Credit Nostro: 500 EUR
Debit Nostro:30 EUR
credit Income GL:30 EUR
Expected Behavior: The should be single consilidated entry on Nostro account(Credit of 470 EUR)
Debit customer:500 EUR
Credit Nostro: 470 EUR
credit Income GL:30 EUR
 user wants a single entry to be posted on Nostro account with 470EUR


STEPS:
1. original incoming MT103 payment has not been completed and funds are present in Payment return account, on outgoing CB payment with debit account as Payment return account has been created manually.
2. Credit account is Nostro account of sender bank of MT103
3. Main transaction netting check box has been enabled in Accounting templates of Charge and Credit accounting template for SWIFT network.
4.Eventhough Netting flag is checked on Credit accounting template(Main txn netting) and in Charges template, two entries are posted. One for Credit of original txn account and one for debit of charges.
5.Tried by checking Netting on Main transaction account in Credit accounting template and Main transaction account in Charges template in PMDACCTL screen. The above expected behavior is not achieved.
6.Netting flag in accounting movements is also checked.

 

Changes

Cause

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