09/10/2022 22:47 Introduction to Transforming MT103, MT202 Messages to Payment Order

Introduction to Transforming MT103, MT202 Messages

to Payment Order
The Delivery MX Translation module enables bank to generate Payment Order based on the MT103/202
messages generated by legacy modules like Loan and Deposit (LD) module.

Transact clients that are in releases prior to R21 AMR can implement a standalone Temenos Payments
platform (R21 or R22 AMR+) to process the ISO20022 SWIFT payments. Delivery MX Translation module,
installed as part of standalone Temenos Payments platform, receives the MT103/202 generated by
Transact business modules and transform them to payment order. Temenos Payments executes the
payment orders and generates the final ISO20022 message.

In the past the MT103/202 payment messages have been generated directly by the contract based

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modules, through the Delivery. The contract raised the accounting entries and credited the Nostro or
Vostro account used in the payment.

However, if the MT103/202 messages are not sent to SWIFT directly but they are translated to payment
orders the entries raised by the contract on the Nostro or Vostro account must be diverted to a wash
(suspense) account. When the payment order is executed, Temenos payments raises the booking entries
and clears (debit) the wash account and credits the Nostro or Vostro account involved in the
transaction. Auto-pay accounts must be setup for the Nostro or Vostro accounts used by the business
modules and the funds diversion must be parameterised for the respective business modules.

The MT103, 202 messages are emitted through the Delivery Framework using the SWIFT formatting
functionality and a dedicated interface. The messages are generated into a Temenos extended format.

The Delivery Translation module picks these messages, transforms them into XML (Temenos MTXML
format), identifies the target carrier and sends them to the Payment Order application on the same
platform with Temenos Payments (in case of a Transact and Standalone Temenos Payments
implementation, Payment Order is implemented in the Standalone Payments platform). The debit
account in the Payment Order indicates the auto-pay account used by the funds diversion.

The Payment Order hands-off the message to Temenos Payments which executes the message,
determines the channel and sends the payment out. If cover method is used, Temenos Payments also
generates the cover message.

Once the payment is successfully executed, Temenos Payments raises the booking entries and clears the
wash account set as auto-account and credits the Nostro or Vostro account.

NOTE:

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NOTE:

Bank must include the Auto-Pay Accounts as part of their account reconciliation process.

The following flowchart explains how the Delivery MX Translation module works when the business
modules generating the messages are on a different Temenos Transact platform (and potentially on a
different Temenos Transact release version) than Temenos Payments.

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The flowchart below explains how the Delivery MX Translation works when the business modules and
TPH are on the same platform.

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