Provider accounts

The account opening record belongs to an organization and a parent banking instruction. It captures the applicant, submitted date, initial deposit, revision and provider application identifier when those details apply. An Accounting Preparer assembles the request. An Accounting Reviewer decides against the submitted revision with supporting evidence in view. Completion means provider authority has been observed, not simply that a local reviewer approved the request.

The account itself records its provider, external identifier, currency, owner and active state. In a factoring treasury team, that gives operations a place to identify the account used for provider movements and later reconciliation. The account register is a control point: similar names or repeated applications should not cause money to be attributed to the wrong provider account.

• Application. The Accounting Preparer works the opening request from Draft to Submitted with the correct parent instruction.
• Review. The Accounting Reviewer decides on the submitted revision and the related evidence before an approved outcome is recorded.
• Provider authority. The team records the provider application reference and treats the review as Completed only after the provider’s authority is established.

Agree which business partners may own provider-held accounts and how the organization verifies their identifiers. Define the documents that support an account application and who checks them. Decide how the provider communicates acceptance or rejection and who records the resulting external account identifier. Set a rule for inactive accounts so an old identifier does not appear in the team’s current operating list.

The team should distinguish the reviewer decision from provider authority. An approved internal review is a prerequisite for proceeding, but it is not evidence that the provider opened the account. Retain the link between the parent banking instruction and the account opening request so later settlement work can be traced back to its origin.

Start with a parent instruction for a new provider relationship. The Accounting Preparer enters an application for the same organization, names the applicant and initial deposit, and attaches the supporting material to the parent instruction. The Accounting Reviewer checks the frozen submitted revision and records the decision. The team then follows the provider’s application identifier. If the provider has yet to grant authority, the review remains short of completion. When authority is confirmed, the team records the provider account with its external identifier and currency.

Repeat the case with a changed initial deposit after the internal decision. The previous approval must remain attached to the earlier revision. Test an application from the wrong organization and a request with inadequate supporting evidence. Both should stop before an approved account is treated as operational.

• Account opening workboard — Applications grouped by Draft, Submitted, Approved and Rejected outcomes.
• Account applications awaiting decision — Submitted requests with applicant and revision details for the reviewer.
• Active provider accounts — The current account register by provider, external identifier and owner.

See account opening and instruction authorization.