Difference between Sweeps and Standing orders

  • sureshnelakurthi
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13 years 4 months ago #12216 by sureshnelakurthi
Difference between Sweeps and Standing orders was created by sureshnelakurthi
Dear Friends,

Can anybody of you precisely explain the difference between sweeps and STO's
What is advantages and disadvantages of using each of them?


Regards,
Suresh N

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  • kartsnek
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13 years 4 months ago #12228 by kartsnek
Replied by kartsnek on topic Difference between Sweeps and Standing orders
STO:

1.Used to transfer the amount between accounts and also possible to deduct the commission and tax for commission amount.
2.Credit account could be a nostro account.
3.FT can be put in IHLD status if debit account does not have sufficient amount

AC.CASH.POOL:

1.Used to transfer the amount between accounts within a bank.
2.i think commission is not possible to deduct.
3.Can execute both online and COB.
4.Sweep cannot happen if the debit account does not have sufficient amount.


Regards,
Karthikeyan K

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  • jpb
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13 years 4 months ago #12236 by jpb
In addition to above:

- STO (e.g. BalanceOut) can be external payments
- two different STO to be used for BI (to cover negative balance) and BO (to pay money out)
- STO of type BO, BI, BP are executed at SOD, the others at EOD
- will generate FT with all the logic behind (e.g. overrides)

- beside AC.CASH.POOL there is also AC.ACCOUNT.LINK (not so complex)
- both can be TWO-WAY, thats not possible with STO
- automatic run during SOD
- will NOT create FT (but AC.ACCOUNT.SWEEP.HIST)

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