MT940 is a standardized financial messaging format used by banks to exchange information about financial transactions. It is a widely used format, particularly in Europe, and is based on the SWIFT messaging system.
The format is structured as follows:
The first section contains information about the sender and recipient of the message, as well as the opening and closing balances for the account being reported on. The second section contains details about individual transactions, including the date, amount, and type of transaction. The third section contains additional information, such as notes and descriptions of the transactions. One of the key features of the MT940 format is its use of specific codes to identify the various types of transactions included in the message. For example, a payment made to a supplier might be indicated with the code "61," while a payment received from a customer would be indicated with the code "86."
The MT940 format also includes a number of optional fields that can be used to provide additional information about the transactions being reported. For example, the "86" code can be used to specify the type of payment being received, such as a regular payment or a one-time payment.
Overall, the MT940 format is a valuable tool for banks and other financial institutions, as it provides a standardized way to exchange detailed information about financial transactions. This allows for more efficient and accurate reporting and reconciliation of accounts, and can help to reduce the risk of errors and fraudulent activity.
Use the ProperConvert to access or convert transaction files from MT940 and to the MT940 format.