CWA 15670:2007

Business requirements specification - Cross industry remittance advice process CWA 15670:2007

Scope

This section describes the extent and limits of the business process within the supply chain being described in this document. The class diagram of the remittance advice business transaction is developed in such as way that it specifies the cross industry reusable business information entities.

Categories Description and Values
Business process Remittance advice process in the supply chain
Product Classification All
Industry Classification All
Geopolitical Global
Official Constraint None
Business Process Role Private and public procurement
Supporting Role None
System Capabilities No limitations

In the payment cycle the transfer of funds takes place between the customer and the supplier in settlement of the amounts that are due for the supply of goods and services. On a date prior to, or synchronous with, the payment date, information about the transfer of funds is exchanged between the parties involved.
This document describes the payment order process and the remittance advice process for the transfer of funds.
The following functions comprise the payment cycle:
- The generation of the payment based on invoices having the status “payable”
- The communication of the remittance details between the customer and the supplier, either embedded in the payment, or as a separate remittance advice.
- The execution of the payment between the customer, customer’s bank, the supplier’s bank and the supplier.
- The reconciliation by the paying organisation of the remittance details with the open invoices in the accounts payable system.
- The reconciliation by the paying organisation of the confirmation from the customer’s bank that the payment has been executed with the “Payments in Transit”.
- The reconciliation by the receiving organisation of the remittance details (either the separate remittance advice or the invoices specified in the bank statement or Credit Advice) with the open invoices in the accounts receivable system.
The different invoicin