What is the purpose of settlement of payment orders?

Every day a lot of money passes through banks. Clients of these financial institutions borrow money, settle on loans, pay for goods and services, and so on, and so on. However, in what way are commands sent to send money, where does the bank find out the addressee? It turns out that everything has been worked out for a long time: for this, there are calculations of payment orders.

This document, in fact, is the order of the owner of the current account for the conduct of an operation and it has, of course, its own characteristics. The bank, having received such an order, is obliged to transfer the specified amount to the account specified in the instruction. In this case, only those funds are used that are listed on the account. The timing of this transaction previously depended on many factors and could be days, or even weeks. Now with the introduction of the electronic document management system, it has been reduced to several hours, and sometimes even minutes.

What transactions are settled?

If you group all operations by types, you can see that payment orders are made by:

• For the goods, products, services or works produced;
• On payments to budgets of all levels and to insurance funds;
• On payment of the principal amount of the loan and interest thereon;
• On depositing funds into deposit accounts.

On the first point there are options. The matter is that for clients there is an opportunity to coordinate with the financial institution special forms of settlements:

• You can make a down payment;
• You can pay for the goods after shipment;
• You can make fractional payments in large transactions .

Each time the procedure is negotiated separately, and the contract, concluded by the client with his partner, is taken as a basis. In this case, the bank becomes a financial assistant.

There is even such a type of cooperation as a letter of credit, when payments by payment orders are made for the provision of certain documents (bills of lading , bills of lading, etc.), confirming the reality of the terms of the contract. Here, in general, the bank plays a dominant role. However, in the Russian practice this did not take root for one reason: the financial discipline is very low.

Principles of filling out a payment order

A payment order is one of those documents for which there is a standard form (Form 0401060) and strict requirements for the correctness of its filling. A sample model was developed and approved by the Central Bank of the Russian Federation. Any correction or even an incorrectly written signature of the responsible person is fraught with the return of the instruction for revision. In the recent past, because of this, payment schedules have repeatedly failed.

At present, payment orders are made through electronic services, called "bank-client". It is noteworthy that each bank develops and uses its protected programs. They are reported only for the exchange of clients' money and the information authorized by the Central Bank. The payment order forms are also stored in the computer memory. It remains to fill out the virtual form, to certify it with an electronic signature and send it to the bank, having received a confirmation of the operation in response.

Next, payments by payment orders go according to the following scheme:

• On the basis of instructions, the buyer's bank writes off the money from the account;
• He also sends a payment order and funds to the beneficiary's bank;
• The beneficiary's bank transfers funds to the seller's account on the basis of the received instruction.

In conclusion, we note that with all the convenience and speed of this method of calculation, it is not yet possible to avoid paper work. Accounting still requires the preservation of information about operations carried out on paper. It's good that the orders sent are still there. But here for the extracts from the bank still have to go to the financial institution.