The Business Payments Coalition is a group of organizations and individuals working together to promote greater use of electronic business-to-business (B2B) payments and electronic remittance data exchanges. The Coalition accomplishes this objective by addressing various problems and barriers that make it difficult for businesses to use electronic alternatives to paper checks and remittance advice. Additional information on the Business Payments Coalition can be found on the Business Payments Coalition’s web site.
This technical report was created by a group of retail industry practitioners representing retailers and suppliers. The need for this project was identified in focus group research conducted by the Remittance Coalition. The X9C work group began by conducting a broad-reaching survey to research and benchmark current practices in the retail industry. The scope included but was not limited to account reconciliation, notification guidelines, timeframes, roles and responsibilities of each party, supporting documentation needed to support debit balance claims, and so on. TR-45 will be a useful tool for retail industry members such as accounts payables and accounts receivables practitioners as well as software vendors who desire to improve and standardize how debit balances are handled by various trading partners. As a result, this will lead to efficiencies, potential cost savings in terms of reduced labor, improved cash management, and better relationships between trading partners. TR-45 is the retail industry’s first attempt to standardize retail debit balance handling. It advocates a consistent approach that can potentially benefit all parties.
The Remittance Standards Inventory is intended to be a current, comprehensive inventory of relevant business-to-business (B2B) payment remittance standards. The intended audience of this payments remittance catalog includes B2B solution and service providers, and the corporations and organizations that must make use of these standards or implementations to facilitate the efficient reconciliation of their payments and remittance data. Standards bodies and other general interested parties are another target audience for this repository.
Using the Remittance Coalition (RC) definition of remittance, as information that explains a payment, a work group developed a glossary to provide greater standardization and improve communication in the purchase-to-pay business processes. This TR is a glossary of terms used in remittance exchange to be a source of common language in the payment and reconciliation process, thus reducing misunderstandings and incorrect processing which results from miscommunication.
This Technical Report contains the most commonly used adjustment reason codes for adjusting a business-to-business payment amount and provides an overview of how to use these codes in the exchange and processing of remittance information. The work group reviewed the list of EDI 426 adjustment codes and identified nine categories and about 70 codes as essential for deduction processing; these were defined as the “core” codes. The Coalition then mapped its core codes to “best fit” codes from the 426 code list to minimize the need to convert, so that the 426 codes can still be used. The consolidated list of core codes listed in the technical report can be used by buyers to help select the right adjustment reason codes to explain deductions, discounts and adjustments taken for a purchase. Suppliers can use the core codes to reconcile payments when deductions are applied. There are a variety of benefits to utilizing these simplified deduction codes for participants throughout the payment value chain.