Statement Formats

A statement is the mechanism used by financial institutions to communicate with their customers regarding transactions and charges incurred by them. It is a periodic report that financial institutions issue to their customers showing their recent transactions, balance due and other key information. Unlike a bill, a statement is informative and you do not make payments against it. A statement is not legally binding. Statements are usually issued at the end of each billing cycle, which is typically about one month long. However, customers can choose the frequency at which they would like to receive the statements. A customer can also request for an adhoc statement.

Earlier, the financial institutions did not follow any standard format while generating the statements and each financial institution followed its own format. Though these statements were used to cater to the customer's needs, it was difficult for other financial institutions to comprehend and interpret the information in the statement, thereby resulting in confusions in inter-bank communications. To address this issue, standard statement formats were introduced that financial institutions were expected to follow.

Bank Services Billing (BSB) is an industry standard that governs the format of electronic bills sent out by financial institutions to large group customers (such as, corporations, governments, and institutions). BSB is a statement to report the corporate customers' usage of financial services and their related charges. It takes the form of a periodic electronic statement that lists all the chargeable service events that occurred during a reporting cycle, along with detailed tax and currency information. The standard was developed by Transaction Workflow Innovation Standards Team (TWIST). The primary aim of TWIST was to develop new and rationalize xml standards that connect the financial and physical supply chains, releasing the enormous value locked up in disjoined paper-based processes.

On the other hand, the Society for the Worldwide Interbank Financial Telecommunication (SWIFT) developed two main standards - MT (text-based) and MX (xml-based). To avoid the divergence caused by TWIST and SWIFT formats, ISO introduced a single standardization approach, which included a common development methodology, process and repository, called ISO 20022. The ISO 20022 standardization introduced the CAMT.086 format, which is a convergence of SWIFT and TWIST formats. The CAMT.086 BSB is the function equivalent of the TWIST BSB version 3.1. Nothing has been lost from the TWIST BSB; the only changes made were to conform to the ISO 20022 XML standards.

Oracle Revenue Management and Billing enables you to generate statements in the CAMT and TWIST formats. Two new statement route types - CAMT and TWIST - are shipped with the product. You can use these statement route types while defining a statement construct for a person. On executing the Create Statements in CAMT or TWIST Format (CISTMEXT) batch, the system will generate statements for all those statement constructs whose statement cycle's processing date which is earlier than the batch business date is in the Pending status. During the statement generation, the system will extract details from the bills in the CAMT or TWIST format which is specified in the statement construct.

You can also use the custom bill extraction process, if required. In such case, you can generate the statements using the legacy batch named Create Statements (STMPRD).

Related Topic

Parent Topic: Producing Statements