Financial accounts

Financial accounts carry the provider, external account identifier, currency and counterparty owner. The Treasury Preparer selects the accounts involved in an instruction and records each debit or credit line with its amount. Those lines establish the account scope behind the headline instruction amount. They also give reconciliation a precise account to compare with a provider movement later.

An account’s active state is an operating decision. It helps the team separate accounts that should be selected for new work from accounts retained for history. Because the provider name and external account identifier are both recorded, the team can check whether a statement or provider movement refers to the expected account before treating it as evidence for an instruction.

• Account directory. The account record keeps its code, provider identifier, currency, active state and counterparty owner together.
• Instruction scope. Each account line links a bank instruction to an account, direction and amount.
• Dated balances. Each snapshot records the provider date, ledger balance and available balance for an account.

Agree how internal account codes map to provider account identifiers and which counterparty owns each provider account. Decide who may update an account’s active state and how an obsolete identifier will be recognized in historical evidence. For instruction preparation, agree how debit and credit lines should add up to the intended amount and which team member checks this before review.

The snapshot date is also important. A provider balance from an earlier day cannot stand in for the balance at the time of a new movement. Choose a routine for collecting dated snapshots and for checking the provider’s identifier before comparing them with reconciliation items.

A preparer creates an instruction with a debit against one provider account and a credit against another. The preparer checks the directions, amounts and account codes before sending the instruction for review. The Independent Treasury Approver reads the same account scope while deciding on the frozen revision. When provider movement arrives, the operations team uses the account reference on the reconciliation item to find the relevant instruction and compares the movement amount and date. The account relationship is part of that match; an equal amount on a different account is an exception to investigate.

• Financial Account Directory — Active accounts with provider identifiers and currency for selection and checking.
• Unmatched Movements — Provider movements that still need an account-specific comparison.

Follow instruction authorization and account reconciliation. The data model shows the account relationships.