In this tutorial, we will learn the difference between MT940 and MT950 in the SWIFT payment message system in SAP.
Sender and Recipient:
- MT940: Sent from one financial institution (account servicing institution or reporting institution) to another financial institution (concentrating institution).
- MT950: Sent from a financial institution (account servicing institution) to its customer (account owner).
Purpose of the Message:
- MT940: Used to transmit detailed information about all entries booked to the account. It serves as a daily transaction journal, and it is sent to the financial institution authorized by the account owner to receive such information.
- MT950: Used to transmit detailed information about all posted entries, whether or not caused by a SWIFT message, booked to the account. It serves as a daily activity statement and is sent directly to the account owner.
Direction of Information Flow:
- MT940: Information flows from the account servicing institution (company or reporting institution) to the financial institution (concentrating institution).
- MT950: Information flows from the account servicing institution to the account owner.
Authorization and Access:
- MT940: The financial institution receiving the MT940 is authorized by the account owner to receive detailed information about all entries booked to the account.
- MT950: The account owner is the recipient of the MT950, receiving detailed information about all posted entries on the account.
Content Focus:
- MT940: Focuses on entries booked to the account, providing a comprehensive view of transactions, including those caused by SWIFT messages. It is essentially a detailed transaction report.
- MT950: Focuses on posted entries to the account, irrespective of whether they are a result of SWIFT messages or other means. It provides a comprehensive overview of account activity for the account owner.
Conclusion
The primary distinction lies in the direction of information flow and the intended recipient. MT940 is an interbank message sent between financial institutions, providing detailed transaction information to the authorized financial institution. On the other hand, MT950 is a message sent from a financial institution directly to its customer, delivering a comprehensive account activity statement.