TBG12 Accounting and Auditing, Registration, Financial Information Services
This specification provides the definition of the Business credit report message (BUSCRD) to be used in Electronic Data Interchange (EDI) between trading partners involved in administration, commerce and transport.
1.1 Functional definition
The Business credit report message is used by credit reporting agencies to provide business credit information about a company to the agency's trading partners. Business credit information includes, but is not limited to, company name(s) or location(s), financial, operational, legal and business credit rating information
BUSCRD relates solely to the exchange of corporate or company credit information and is intended to enable the automation of business decision processing.
1.2 Field of application
The Business credit report message may be used for both national and international applications. It is based on universal practice related to administration, commerce and transport, and is not dependent on the type of business or industry.
BUSCRD is bi-directional. It can be used by buyers, sellers, marketeers, and financial institutions to request from a party holding such information, all or part of the credit information of an existing or potential trading partner. It can also be used by parties holding credit information to respond to requests, with all or part of the information as may be available in a data base. Upon receipt, the information can be used to support automated business decision processing and to update business data bases. BUSCRD may also be used to cancel previously transmitted information
A single occurrence of BUSCRD may be used to request or to send information for one or more entities or to cancel one or more previous transmissions. The message beginning segment is used to indicate the specific message functionality.
Cross referencing is permitted within the message to identify a related electronic exchange. There is typically no requirement to directly link external objects (e.g., associated data) to a business credit report. Stored data will normally be transmitted within the confines of the message structure.
Changes to previously submitted data are considered as updates or replacements to the original data. The BUSCRD message structure does not provide for the identification of incremental changes. The receiving application should update the existing data with the revised or new data. If business practice requires retention of an auditable track of all data, then the receiving application should recognize the new data as a complete replacement, providing the necessary distinguishing criteria.
While the BUSCRD message is independent of system applications, its structure derives from the manner in which credit information is developed and stored in data bases. Typically, credit information can be classified by category and type.
BUSCRD structure is sufficiently flexible to accommodate industry and sectorial differences in data structures.
The trigger segment of the group defining the hierarchy is used as the mechanism for accommodating differences in data content and data structure among users. Augmented functionality is attributed to this trigger segment permitting the identification of data dependencies and the content of hierarchically related segment groups. The continuation of parent and/or child relationships is permitted at all necessary levels as is the identification of the level to which the hierarchy applies. This permits the transmission of hierarchical information to as many differing levels as may be necessary to report credit information, the relationship of credit history data, and the relationships among business entities such as parent, subsidiaries affiliates and similar entities.
Information conveyed within a BUSCRD message may be considered as business sensitive data. Notwithstanding, there are no special security requirements incorporated in the message structure. Security issues should be treated as matters to be resolved among trading partners and will likely involve varying solutions.
BUSCRD may be used to provide information about a company, its branches, subsidiaries, affiliates, or parent company. Names, addresses, work experiences, business or professional titles of management within a company may be included. Other names (e.g., previous) and length of time a business has been operational may be reported. History of a company may include its previous locations, original starting details, and legal changes.
Operational data about a company may be included. This information may consist of detailed descriptions of activities.
Such as buying and selling patterns. It may also include buildings or other facilities used, whether owned or rented, number of employees, and/or monetary or quantity amounts of products produced, sold or held in inventory.
Financial information could be the largest part of a Business credit report message. This may include typical balance sheet information of assets, liabilities, income and expenses.
Outstanding debt such as loans or debentures may be reported as well as repayment history. Required governmental, financial statement information, its format periodicity and completeness may be sent. Financial institution account information may be stated with information pertaining to types of accounts and average balance in each account. A comparison to industry norms may be included.
Payment information forms another large part of the BUSCRD message. This may include history of payments to suppliers and vendors. Breakdowns of payment amounts to specific payees.
Payments made within contract terms, and past due or slow payments. A history of invoice payment terms to specific payees may be included along with discount percent and discount days due granted. A payment score indication promptness of payments over a period of time may be included.
Public filings and legal actions may be reported although this varies among countries. Included may be any type of legal actions citing plaintiffs, defendants, attorneys, dates, status, legal damages and awards.
An overall credit or risk assessment rating based upon the credit reporting agency's detailed analysis may be assigned. A detailed analysis of risk factors and credit or financial worthiness may be included.
See UNTDID, Part 4, Chapter 2.3 UN/ECE UNSM - General Introduction, Section 1.
3. TERMS AND DEFINITIONS
3.1 Standard terms and definitions
See UNTDID, Part 4, Chapter 2.3 UN/ECE UNSM - General Introduction, Section 2.
4. MESSAGE DEFINITION
4.1 Data segment clarification
This section should be read in conjunction with the segment table which indicates mandatory, conditional and repeating requirements.