Basis of an International Payment

First, it is clarified which goods, work or services are being paid for, who receives the payment, the currency in which the price is stated and when the counterparty must perform. The amount is then linked to the relevant contract, annex and invoice. If an advance, staged payment or several deliveries are provided for, the basis and performance document are recorded for each amount.

At the same time, signatory authority, recipient bank details and consistency of the transaction with the company's normal activity are checked. These matters should be resolved before the payment instruction is submitted so that the contract, invoice, bank application and accounting records describe the same business transaction.

Before an international transfer, the bank should see one clear purchase: who the seller is, what exactly is being paid for, under which contract and invoice, in which currency and to which bank details. The package is therefore prepared for the relevant payment: contract, invoice, performance, bank details and amount.

The lawyer checks the contract and authority, the commercial manager the subject matter and delivery terms, the accountant the amount and accounting treatment, and the finance employee the bank details and transfer date. The director approves the final commercial version, after which all participants use the same data.

Before the instruction is submitted, the party names, numbers and dates, currency, amount, payment purpose and bank details are checked against one another. For an advance, the future performance document is identified separately; for payment after delivery, the existing evidence of goods or services is included.

The working payment file contains the contract, specification or order, invoice, bank-details sheet, evidence of delivery or service and bank correspondence. After the transfer, the bank statement and bank confirmation are added, giving the accountant a complete package for one transaction.

1. Check the Contract, Invoice and Payment Purpose
2. After an international transfer, retain the bank receipt together with the invoice and performance document.

Documents for the Bank and Payment Details

For repeated payments under the same contract, permanent documents are stored separately, while the new file contains only the specification, invoice, amount, date and current evidence of performance. Each new order has its own variable-document set, while permanent corporate materials are reused after their current status has been checked.

• Contract, Specification or Order, Invoice, Recipient Bank Details and Performance Document
• Contract and Annexes
• Invoice, Acceptance Certificate or Goods Documents
• Bank Statement
• Explanation of Business Purpose

Before a non-standard or material payment, the finance employee checks the current NBU currency conditions and the servicing bank's procedure. If the bank already holds some information about the client or counterparty, the new package contains only current materials relating to the declared transfer.

The director designates a backup signatory and an employee with access to contracts, bank details and the banking system. Details of a new or changed recipient are confirmed using a separately agreed method, and a copy of that confirmation is retained in the payment file.

Payment for goods usually requires the contract, specification, invoice and delivery documents. For services, the description of the service, performance period and acceptance certificate or other method of acceptance are important. For refunds, loan payments or payments for intellectual-property rights, the supporting documents differ, so the list is determined by the actual basis of the international transfer.

If the bank already knows the counterparty and transaction type, some information may already be held in the client file. For a new transaction, dates, amounts, names and bank details are checked against the contract and invoice. For a first payment, registration documents for the foreign party and information helping the bank understand the commercial purpose of the relationship are additionally prepared.

Response to a Bank Request

When a bank requests an explanation, UBC specialists review each question and identify the document supporting the answer. The response states the parties, subject matter, amount, source of funds, performance procedure and the transaction's connection with the company's business. Document names are presented so that the bank specialist can quickly match each attachment to the relevant fact.

The response includes only materials that address the bank's questions. Management receives a final attachment list, agreed explanation and a list of data to update in the bank profile. After submission, the date, responsible employee and next bank response are recorded.

Send the contract and annexes, invoice, description of the goods or services, amount and currency, counterparty details, planned transfer date and the bank's request if already received. For recurring payments, add the payment calendar and sample documents from previous transactions.

A UBC specialist will review the package, prepare a list of supporting evidence to be added and agree the scope of support. After the payment is made, UBC can help add the bank receipt and performance documents to an archive that the accountant and director can use for accounting and future payments.

The commercial manager confirms the subject matter and arrangements with the counterparty, the accountant checks the amount, currency and accounting treatment, management approves the payment, and the employee responsible for bank communications submits the documents. The interaction procedure is recorded in a concise list. If the bank asks an additional question, the responsible person can immediately identify who should provide the required evidence and send an agreed version using the payment file already prepared.

One package includes the contract, specification or order, invoice, transport or other performance document, counterparty information and calculation of the amount. The payment purpose should correspond to the basis, currency and actual stage of the transaction. If the bank asks questions, the response is prepared point by point and each conclusion is supported by a document.

For recurring payments, a transaction file and list of responsible persons are used. The commercial team provides the terms, accounting confirms the accounting treatment, and management approves the economic substance of the transaction. After the payment is made, the bank confirmation is stored with the transaction documents. The director and responsible employees receive a prepared procedure for subsequent transfers under the same contract.