Configuring Netting

This section describes the configuration options that the system offers in Netting.

ACCOUNT.PARAMETER

To allow netting of transactions for payments, the Net Payments field in ACCOUNT.PARAMETER file is given as Yes.

NETTING.PARAMETERS

NETTING.PARAMETERS file determines the controls by which the system operates. Following are the parameters defined in the NETTING.PARAMETERS file:

• Classify the transaction codes used on the debit and credit netted entries.
• Use the range of value dates to propagate the transactions to the NETTING file.
• Establish when NETTING file records are purged to history.

NETTING.AGREEMENT

The definition for grouping FX transactions are mentioned in the NETTING.AGREEMENT application. This application:

• Has the conditions using which the grouping of transaction happens.
• Is an agreement between the customer and bank.
• Can create a single agreement for each customer record.

NETTING.ENTRY

FX transactions covered by netting agreement are written in a separate application called NETTING.ENTRY. The record can be maintained to add settlement, confirmation details, and if required, individual payments can be dropped from the net payment. On authorisation of NETTING.ENTRY record, the accounting entries raised for the grouped transactions in suspense accounts are debited (reversed) and a credit entry to customer or nostro account is generated.