1.2.1 Settlement Preferences for a Customer

You can maintain the settlement preferences of a customer or a bank in the ‘Settlement Instructions Maintenance ’ screen invoked from the Application Browser.

In this screen you can maintain preferences for an entity by defining the settlement accounts and a detailed settlement route comprising the correspondent accounts and the intermediaries through which the settlement messages are to be generated. The party information entered should adhere to SWIFT standards.

To capture settlement preferences for a customer

Specify the User ID and Password, and login to Homepage.

1. On the Home page, type LBDINSTR and click next arrow.
   The Settlement Instructions Maintenance screen is displayed.

   Note:

   The fields which are marked in asterisk red are mandatory fields.

   Figure 1-1 Settlement Instructions Maintenance

   
   Description of "Figure 1-1 Settlement Instructions Maintenance"
2. On the Settlement Instructions Maintenance screen, click the New icon and specify the details as required.
3. Click Save to save the details else click Cancel to close the screen. For information on fields, refer to the field description table.

   Table 1-1 Settlement Instructions Maintenance

   Field	Description
   Counterparty	You can maintain the basic settlement preferences for an entity (counterparty)
   Product code	You can choose a specific product code or choose ‘All’ from the option list. However, if you have chosen ‘All’ in the Module field, this field is defaulted to ALL. You are not allowed to change this.
   Branch	Maintain settlement instructions for all the branches or for a particular branch.
   Short Name	Specify the short name of the customer.
   Counterparty Type	The Counterparty Type can either be CIF or BIC depending on whether your bank has an accounting relationship with the party for whom the instruction is being maintained or whether it only has a SWIFT messaging relationship.
   Currency	Maintain settlement instructions for a particular currency or for all the currencies
   Sequence Number	You can specify a unique SSI Mnemonic (Standard Settlement Instruction Mnemonic) for the combination of Counterparty, Counterparty Type, Module, Currency, and Branch combination. You can define a new sequence number for the settlement instruction you are maintaining. Consequently, you can access this sequence number at the contract level. You can maintain various settlement instructions for each transaction comprising of the same counterparty. By default, the sequence number generated by the system is zero.
   Customer Name	Specify the customer name
   Generate Direct Debit Message	You can select this option to generate direct debit messages for settlements, the system generates a customer direct debit message or bank direct debit messages depending on the customer type of the counterparty.
   Charge Details	While processing an FT for the customer the appropriate charge account is picked up depending on the customer, currency and branch processing the FT. In addition, you can maintain the details of the various intermediaries involved in payments and receipts. The preferences maintained for an entity determine the manner in which money settlements are made on behalf of the entity. Note: If you are defining settlement instructions for a customer related to the FT module you have to indicate the charge account, which is used as the default account for deducting all charges involved in processing the FT. Subsequently, you need to maintain the transfer type for the settlement instruction specifying whether the transfer is a customer type or bank type. In addition, the Instruction type for both Pay leg and Receive leg has to be maintained for the payment. The available options are Manual, Awaited, Nostro, and Vostro. In addition, as part of settlement instruction you need to maintain the USD clearing network details whether the USD clearing Network is Fedwire, CHIPS Universal or CHIPS participant.