Every day, a huge mass of money passes through banks. Clients of these financial institutions borrow money, pay off loans, pay for goods and services, and so on and so forth. However, in what way commands are sent to send money, how does the bank know the addressee? It turns out that everything has been worked out for a long time: for this, there are settlements with payment orders.
This document, in fact, is the order of the owner of the current account on the conduct of a particular operation and it, of course, has its own characteristics. Upon receiving such an order, the bank is obligated to transfer the indicated amount to the account specified in the order. In this case, only those funds that are on the account are used. The lead time for 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 minutes.
What operations are settled?
If you group all operations by type, you can see that settlements by payment orders are made:
- for purchased goods, products, services rendered or work performed;
- on payments to budgets of all levels and insurance funds;
- on payment of the principal amount of the loan and interest thereon;
- to deposit funds into deposit accounts.
There are options for the first item. The fact is that it is possible for clients to agree on special forms of settlements with a financial institution:
- You can make an advance payment;
- You can pay for the goods after shipment;
- in large transactions, you can make fractional payments.
Each time, the procedure is negotiated separately, and the contract concluded by the client with his partner is taken as the basis. In this case, the bank becomes a financial assistant.
There is even such a type of cooperation as a letter of credit, when settlements by payment orders are made on the provision of certain documents (consignment notes, bills of lading, etc.) confirming the reality of fulfilling the terms of the contract. Here, in general, the bank plays a dominant role. However, in Russian practice this did not take root for one reason: financial discipline is very low.
Principles for completing 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 completion. The type sample was developed and approved by the Central Bank of the Russian Federation. Any correction or even incorrectly put signature of the responsible person is fraught with the return of the order for revision. In the recent past, payment schedules have been disrupted more than once.
Currently, settlements by payment orders are carried out through electronic services called “bank-client”. It is noteworthy that each bank develops and uses its own secure programs. They are communicated only for exchanging money of clients and information authorized by the Central Bank. Forms of payment orders are also stored in computer memory. It remains to fill out the virtual form, certify it with an electronic signature and send it to the bank, having received a confirmation of the operation in response.
Further settlements by payment orders are as follows:
- on the basis of the order, the buyer's bank debits the money from the account;
- he sends the payment order and funds to the beneficiary's bank;
- on the basis of the received order, the beneficiary’s bank credits the funds to the seller’s account.
In conclusion, we note that with all the convenience and speed of this method of calculation, paper work cannot yet be avoided. Accounting all the same requires the preservation of information about transactions on paper. It is good that the orders sent remain in place. But here you will still have to follow the extracts from the bank to a financial institution.