Solutions Summit 2014 Creating and Maintaining Accurate Banking Structures Terri Sullivan

Chesapeake System Solutions, Inc. Proprietary and Confidential Handling Your Bank Information Keeping track of the bank setup is an important part of using SmartAnalysis. From small banks to large banks, domestic banks to foreign banks, SmartAnalysis can be your repository of information. From importing signers to tracking your negotiated fees, this information is at your fingertips in the Bank Information module. A well-maintained bank setup allows SmartAnalysis users to produce the most consistently accurate evaluations of bank fee information.

Chesapeake System Solutions, Inc. Proprietary and Confidential Banking Structure Contains the hierarchical information about a bank: Relationships Accounts Statements Under each bank are folders containing relationship accounts and statements. Under Relationships are negotiated fees, closed accounts and active detail accounts. Under Statements is a listing of all bank statements received.

Importing Banking Information Using an 822 file, a TWIST xml file or a CSV file, SmartAnalysis imports the information into an easy to navigate database.

Chesapeake System Solutions, Inc. Proprietary and Confidential Let’s start at the beginning: Importing SmartAnalysis allows users to import the following formats: 822 TWIST XML CSV – Service charges ‘Produce complete baseline from this statement’ is ONLY selected the first time a file is imported for a bank not shown in your Banking Structure.

Chesapeake System Solutions, Inc. Proprietary and Confidential Importing a file for a new bank When users import a file for a bank which is not set up in the banking structure, users need to select ‘Produce complete baseline from this statement’. Producing the complete baseline will create: The Bank Name and ABA/SWIFT NUMBER Incoming Balance codes Contacts Address Relationship accounts Name and account number Negotiated fees (based on the pricing contained in the file) Detail accounts Name and account number

Chesapeake System Solutions, Inc. Proprietary and Confidential 822 Files The 822 file format is an industry standard for electronic bank statements provided by your bank each statement cycle. 822’s have various format versions and elective options within the version. Currently the preferred version is 4010 format. This data file contains the complete bank, account and relationship information along with listed balances and service transactions used per month.

Chesapeake System Solutions, Inc. Proprietary and Confidential Technical Components of an 822 file There are three levels to a 822 transaction set:  Interchange Control Envelope (ISA/IEA): The largest envelope, this segment contains addressing, security and control information.  Functional Group Envelope (GS/GE): The inner envelope encloses a group of similar transaction sets.  Transaction Set Information (ST/SE): The business document that is the electronic data file equivalent of one or more account analysis statements. A transmission of account analysis data must always start with ISA and GS segments and conclude with GE and IEA segments.

Chesapeake System Solutions, Inc. Proprietary and Confidential A Raw 822 File

Chesapeake System Solutions, Inc. Proprietary and Confidential Unwrapping an 822 file Copy file into Word Replace – Special – Paragraph Mark with “blank” Replace - \ with Special –Manual Line Break

Chesapeake System Solutions, Inc. Proprietary and Confidential Unwrapped 822 File ISA*00* *00* *01* *01* *100624*0951*U*00301* *0*P*~ GS*AA* * * *095147*84923*X* ST*822*84923 BGN*05* * *095147*LT DTM*150* DTM*151* N1*BK*WELLS FARGO BANK, N.A.*13* N3*PO BOX N4*SAN FRANCISCO*CA*94163 PER*AA*MACMATH, JENNIFER*TE* RTE*1*1 RTE*2*0*0 RTE*UF*0 DTM*151* ENT*1 N1*AO*TEST CUSTOMER N3*TEST STATEMENT -- DO NOT MAIL N3*TEST STATEMENT -- DO NOT MAIL N4*GREAT MILLS*MD* ACT* *OVERALL SUMMARY*13* LX*1 BLN*TE*000420* BLN*TE*000240*0 BLN*TE*000330*0 BLN*TE*000010* BLN*TE*000040* BLN*TE*000000* BLN*TE*000400*0 BLN*TE*000030*0 BLN*TE*000350* BLN*TE*000020*0 BLN*TE*000013*0

Chesapeake System Solutions, Inc. Proprietary and Confidential Unwrapped Test File – Service Lines SER*TB*150511CUS015* *595.00*7.00*85*CASHIER'S CHECKS $7.00 EACH**A~ SER*TB*150514CUS104* *50.00*5.00*10.00*MONEY ORDER $5.00/EACH**A~ SER*TB*010400AAA001* *25.00*25.00*1.00*ACCOUNT MAINTENANCE $25.00/ACCOUNT**A~ SER*TB*000230AAA012* *3.8033*0.015*253.55*FDIC INS/FICO $.015/$1000**B~ SER*TB*010400AAA100* *30.00*30.00*1.00*ELECTRONIC ACCT ANALYSIS 822 $30.00/MONTH**B~ SER*TB*010402AAA103* *20.00*20.00*1.00*822 TRANSMISSION $20.00/TRANS**B~ SER*TB*100600ARP004* *55.00*55.00*1.00*DEPOSIT RECONCILEMENT - BASE $55 ACCT/MONTH**B~ SER*TB*100610ARP041* *203.25*0.15* *DEPOSIT RECONCILEMENT - ITEM $.15 PER DEP**B~ SER*TB*151342ARP108* *60.00*6.00*10.00*PHOTOCOPY SERVICE $6.00 EACH**B~ SER* - Functional Identifier code TB* - AFP Standard Identifier (sometime TE which signifies “only” AFP Codes, normally shown on balances) CUS015*- AFP Code (first 6 digits) & Bank Code * - Compensating Balance (amount that must be maintained to offset service charges) * - Total Service Charge 7.00* - Per Unit Charge 85* - Number of Units CASHIER'S CHECKS $7.00 EACH* - Service Charge Description * - Fee Type Identifier (if blank = P*Q; THP –Threshold pricing etc..) A - Payment Method Code ( A = common charge; B= Compensation By Balance etc..) ~ - End of line indicator

Chesapeake System Solutions, Inc. Proprietary and Confidential TWIST XML FORMAT The global electronic billing statement, known as TWIST “BSB,” is now an international standard under ISO The BSB can provide your international bank relationships with a complete standardized picture, analysis and electronic billing statements. This data file contains the complete bank, account and relationship information along with conversion rates and service transactions used per month.

Chesapeake System Solutions, Inc. Proprietary and Confidential Sample TWIST file Citigroup Inc T12:00:00

Chesapeake System Solutions, Inc. Proprietary and Confidential Sample TWIST file Detail Original …………………………… USD CHESSYS

Chesapeake System Solutions, Inc. Proprietary and Confidential Service Charges TWIST XML file MutallyDefined Book Transfers - Automated 1 EUR 1 EUR UnitPriced HardCharge 1 EUR USD

Chesapeake System Solutions, Inc. Proprietary and Confidential CSV service charge import Format specific CSV file can be used to import service charges. This file can be used in cases where no 822 file is available. Example of required format:

Creating Banks and Accounts Manually When 822 files or TWIST files are unavailable, users can manually create banks, accounts, and statements.

Chesapeake System Solutions, Inc. Proprietary and Confidential Manual Creation of New Banks and Accounts When creating a new banking hierarchy, users will create a bank, relationship account(s) and detail account(s). If the bank has monthly analysis charges, the negotiated fees can be added to the relationship accounts. Monthly analysis statements can be created manually and processed into the software.

Chesapeake System Solutions, Inc. Proprietary and Confidential Creating a Bank Manually If the bank does not have an 822 file available, users can create their banks manually. From Banking Structure, select the down arrow and choose New and then select Bank. An unnamed bank tab will open for the user to enter the bank’s information.

Chesapeake System Solutions, Inc. Proprietary and Confidential Manual Creation of Banks

Chesapeake System Solutions, Inc. Proprietary and Confidential Manual Creation of Relationship Accounts After setting up a new bank, a new Relationship Account will need to be created to accompany it. To create this new Relationship Account, highlight the new bank, right click it, select ‘New’, and then ‘Relationship for selected Bank’.

Chesapeake System Solutions, Inc. Proprietary and Confidential Manual Creation of Relationship Accounts

Chesapeake System Solutions, Inc. Proprietary and Confidential Adding Negotiated Pricing/Fees After inputting the Relationship Account information, the service charge fees will need to be input as well. To do so, select the ‘Negotiated Fees’ tab, then select ‘Add’, and then input the Identity Information and Rate Details.

Chesapeake System Solutions, Inc. Proprietary and Confidential Manual Creation of Detail Accounts After setting up a new Relationship Account, the new Detail Accounts will need to be created. To create this new Detail Account, highlight the new Relationship Account, right click it, select ‘New’, and then ‘Account for selected Relationship’.

Chesapeake System Solutions, Inc. Proprietary and Confidential Manual Creation of Detail Accounts

Creation of a Statement When only a paper statement is available, users can manually create a statement.

Chesapeake System Solutions, Inc. Proprietary and Confidential Manual Creation of a Statement Users will have two options: ‘Create Statement from bank setup’ should be chosen when the user is creating the first statement. If statements already exist, the user can ‘Create Statement from latest statement data’. It is best to input the Negotiated Fees at the Relationship level prior to creating a statement. Should the user create a statement before inputting the Negotiated Fees, the user will have to add the line items when creating the statement for each Summary and Detail Account.

Chesapeake System Solutions, Inc. Proprietary and Confidential Manual Creation of a Statement To create a new statement manually, highlight Statements, right click and make selection.

Chesapeake System Solutions, Inc. Proprietary and Confidential Manual Creation of a Statement Users are required to input the statement period on the ‘General Information’ tab.

Chesapeake System Solutions, Inc. Proprietary and Confidential Manual Creation of a Statement The ‘Account Detail’ tab displays: Statement Hierarchy Bank name Relationship Account Detail Accounts Relationship/Account Detail Service Charges Balances Rates The service charges information must be input on the for each Relationship and Detail Account.

Chesapeake System Solutions, Inc. Proprietary and Confidential Manual Creation of a Statement The balance code information must be input on the Balances tab for each Relationship and Detail Account. The first month users will need to add the balance codes: To add codes, select add, input the service code, description and amount

Chesapeake System Solutions, Inc. Proprietary and Confidential Processing of a Manual Statement Upon completion of the manual statement, save your entries. The statement will be shown under the statements folder with a red circle, signifying the statement needs to be processed into SmartAnalysis. To process the statement, right click on the statement and select Reprocess Statement.

Enhancing and Maintaining Bank Information

Chesapeake System Solutions, Inc. Proprietary and Confidential Bank Level Information

Chesapeake System Solutions, Inc. Proprietary and Confidential Bank Level - Contacts Detailed contact information for bank representatives is entered on the Contacts tab of the Bank Editor located in the bottom corner of the Bank Editor, second tab from the left. Information can be either manually input or imported.

Chesapeake System Solutions, Inc. Proprietary and Confidential Authorized Associates Tab (RM) Authorized Associates are employees of your organization that are trusted to make decisions about and take action on the relationship with a bank.

Chesapeake System Solutions, Inc. Proprietary and Confidential Bank Level - Balance Mappings Balance Mappings aligns the incoming balance information from a bank with the SmartAnalysis Comparison Codes. This allows SmartAnalysis to perform meaningful comparisons of balances across banks in reports and queries.

Chesapeake System Solutions, Inc. Proprietary and Confidential Bank Level – Case Folder The Case Folder tab provides you with an area to record comments/case notes, insert attachments to the file and to those entries to a selected address. The Case Folder tab displays the history for the bank. A prefect place to attach your negotiated price listing.

Chesapeake System Solutions, Inc. Proprietary and Confidential Relationship Level Information

Chesapeake System Solutions, Inc. Proprietary and Confidential Relationship Level – Negotiated Fees The Negotiated Fees Tab of the relationship editor contains information for the expected fees that define the baseline against which the discrepancy process compares incoming service charges. When carefully maintained, the negotiated fee information provides accurate rate, boundary and tolerance information. The more accurate the negotiated fee setup is, the more effective SmartAnalysis can be in helping you to identify and eradicate discrepancies.

Chesapeake System Solutions, Inc. Proprietary and Confidential Relationship Level – Negotiated Fees

Chesapeake System Solutions, Inc. Proprietary and Confidential Relationship Level – General Ledger Export The GL Export Tab of the relationship editor sets the allocation patterns for bank fees at the summary level. Earning credit balance detail can also be allocated. Radio button is used to export the allocated charges.

Chesapeake System Solutions, Inc. Proprietary and Confidential Detail Account Level Information At the account level, any information regarding negotiated fees, tolerances or G/L export will supersede the summary level instruction. The specialized information – Bank Confirmation is part of the Relationship Manager (RM) module. Account signer information is maintained on the Signer tab. Relationship Manager (RM) module required.

Chesapeake System Solutions, Inc. Proprietary and Confidential Detail Account – General Information

Chesapeake System Solutions, Inc. Proprietary and Confidential Detail Account – Signer Information (RM)

Chesapeake System Solutions, Inc. Proprietary and Confidential Detail Account – Bank Confirmation

Chesapeake System Solutions, Inc. Proprietary and Confidential Detail Account – Earnings Credit Calculator

Chesapeake System Solutions, Inc. Proprietary and Confidential Banking Structures The Banking Information Module allows users to maintain their entire banking relationship. From opening to closing, all account information is available for review or update with a click of your mouse.

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