UBL Payments and Finance Subcommittee

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Identifying requirements for standardized UBL document types supporting payments- and finance-related processes.

Todd Albers, todd.albers@mpls.frb.org, Chair
Kenneth Bengtsson, kbengtsson@efact.pe, Chair
Ken Holman, gkholman@CraneSoftwrights.com, Secretary

Statement of purpose

The culmination of the supply chain processes as defined in UBL end in the issuance of an invoice and use of a remittance advice, however there are subsequent processes involving financial institutions, such as bank payments and trade finance operations, which implicate existing business documents and involve the participation of party roles that are not documented in the UBL supply chain processes.

Considering the availability of standardized documents already in the area of payments, the ISO 20022 specification standardizes concepts and information items, and this new subcommittee work is not intended to compete with such. Accordingly this work intends to enrich UBL by aligning with and adding context to the information described by ISO 20022 by supporting information from the procurement process leading up to the issuance of the invoice. Nor does ISO 20022 accommodate the attachment of the original invoice as documentation for the payment or financing operation. Building UBL documents as a bridge to ISO 20022 satisfies the established user-base of UBL's common library in other UBL documents while ensuring the information can be transmitted to systems that may already be operating with ISO 20022.

From a processing and accounting perspective, it is important to have payments and trade financing documents distinct from the invoice and other business documents because they are financial operations triggered by a procurement and not part of the procurement process itself. Furthermore, regulatory requirements in many jurisdictions prohibit the alteration of an invoice document after its issuance, such that subsequent information regarding payments and financing cannot be embedded in the invoice itself. Other examples found internationally of the invoice conflate procurement and payment information in a single document that can be difficult to work with by all parties, and do not meet regional regulatory requirements.

All information exchanged during payments and financing must be trusted to ensure the integrity of the process. This requirement is often supported by legislation and enforced by regulators.

The UBL Payments and Finance Subcommittee is tasked with identifying requirements for the enrichment, development and implementation of standardized UBL document types for payments- and finance-related processes that have the potential to bridge UBL procurement systems to financial systems supporting the handling of payments and trade finance.

Scope of Work

  1. To liaise with governments, industry, and organizations responsible for payments and trade finance to identify business and legal requirements for associated processes.
  2. To develop, document and maintain the semantic conceptual models for the UBL Payment and Finance package within the UBL package as a whole. This may include identifying suitable code lists.
  3. To liaise regarding the payment and finance models with other subcommittees in UBL as required.
  4. To foster implementations of UBL for payment and finance through coordination, guidance, and responsiveness to queries in order to test the viability of UBL implementations in real-world scenarios. For example, the Web Payments Working Group at the W3C.
  5. To develop informative materials as an aid to developers of UBL based applications and interfaces.
  6. The Subcommittee is not responsible for the generation of any XML Schema.

The pace of development will attempt to keep up with the release of new versions of UBL, beginning with UBL 2.3.

List of Deliverables

  1. UBL payments and finance process model(s)
  2. UBL payments and finance document model(s)
  3. UBL package documentation of the payments and finance models
Possible Deliverables

4. Descriptions of representative payments and financing scenarios

Providing Feedback: OASIS welcomes feedback on its technical activities from potential users, developers, and others to better assure the interoperability and quality of OASIS work.