BAI2 Format Specification 6

BAI2 Format Specification – Corporates are using a variety of bank statement formats to receive information from their bank(s) about the activity happening on a given account. While most corporates are using the MT940 format, other bank statement formats are of course available and being used. One such example is the BAI2 format. Just before the Christmas break a question came up which required the received bank statement, in a BAI2 format, to be reviewed and the details of the specific field value shared with the cash management team.

Given the high interest in the MT940 Format post, and the fact that I had the BAI2 details in front of me I thought it would be a useful to share the details of the BAI2 format too.

This post reference information from:

• Wikipedia BAI
• BAI – Bank Administration Institute
• BAI – Cash Management Balance Reporting Specification, version 2
• ASC X9 – Accredited Standards Committee X9

What is BAI, and BAI2?

BAI (Bank Administration Institute) is a financial services association, they developed the BAI format standard to enable cash management balance reporting. Following is a quick overview of how the BAI2 format came about:

•  1971 – BAI developed the Lockbox Communications Standards for Banks, enabling reporting for lockbox only
  • This original lock box format was not updated and was eventually replaced
• 1980 – BAI releases BAI1, Cash Management Balance Reporting Specification, Version 1
  • BAI stopped supporting BAI1 after 1990
• 1987 – BAI2 releases Cash Management Balance Reporting Specification, Version 1
• 2008 – BAI transferred the copyright of the BAI file format to the Accredited Standards Committee X9, Inc. (ASC X9)
  • ASC X9 has developed the next generation format for cash management reporting. This next generation reporting is referred to as Balance Transaction Reporting Standard (BTRS) and is informally / loosely called BAI3

In short, the BAI2 format is a cash management balance reporting specification developed by the BAI (Bank Administration Institute). From experience the BAI2 format is widely used in the US. BAI2 is globally supported by most of the major global banks, but outside of the US and with local banks corporates may find that the BAI2 format has limited availability.

BAI2 Format – File Layout:

• Record Type: 01 – File Header – indicating the beginning of the file
• Record Type: 02 – Group Header – identifying the group of accounts – a file may contain multiple groups, and would be followed by a 03 record
• Record Type: 03 – Account Identifier & Summary Status – indicating the account number, activity summary and account status information
• Record Type: 16 – Transaction Detail – as it says! Transaction detail information such as generic reference information is indicated in this record type (optional record)
• Record Type: 49 – Account Trailer – indicating account control totals
• Record Type: 98 – Group Trailer – indicating group control totals
• Record Type: 99 – File Trailer – end of file indicator

BAI2 file:

• Will only ever contain 1 record header (record type 01) and file trailer (record type 99)
• Can contain multiple groups, where this happens the record type 02, 03, 16, 49, 98 would be repeated

BAI2 Record Formats:

Note: All of the below fields within a specific record are comma separated

BAI2 Format – File Header – 01

• Record code – 01
• Sender Id – alphanumeric value
• Receiver Id – alphanumeric value
• File Creation Date – YYMMDD format
• File Identification Number – Unique value to distinguish files sent on the same date
• Physical Record length – optional
• Block Size – optional
• Version Number – 2

BAI2 Format – Group Header – 02

Note: A group header highlights accounts from the same originator with the same as-of date

• Record Code – 02
• Ultimate Receiver Notification – optional, normally banks put the same value as in Receiver Id from the Header Record
• Originator Identification – bank code or SWIFT BIC where the account being reported (in record 3) is held
• Group Status:
  • 1 – Update – most commonly used for previous day reporting and same day reporting
  • 2 – Deletion
  • 3 – Correction
  • 4 – Test Only
• As of Date – YYMMDD – as of date of all accounts with the group
• As of Time – HHMM – in military format i.e. from 0000 – 2359
• Currency Code
• As of Date Modifier:
  • 1 – Interim previous day data
  • 2 – Final previous day – most commonly used for prior day reporting
  • 3 – Interim same day – most commonly used for intra-day reporting
  • 4 – Final same day

BAI2 Format – Account Identifier & Summary Status – 03

• Record Code – 03
• Customer Account Number – at the originator financial institution
• Currency Code – optional
• Type Code – optional* – indicates the type of balance (Summary/Transaction) being reported. – in this record type Account Status &  Activity Summary codes are used
• Amount – optional
• Item Count – optional*
• Funds Type – optional*

BAI2 Format – Transaction Detail – 16

• Record Code – 16
• Type Code – details data type* – indicates the type of balance (Summary/Transaction) being reported. – in this record type Transaction Detail codes only are used
• Amount
• Funds Type*
• Bank Reference – bank assigned reference to help identify the transaction
• Customer Reference – as corporates, this is the field we’re interested in. It should contain our reference for reconciliation purposes
• Text

BAI2 Format – Continuation Record – 88

If the data in any record type exceeds the physical record size, or if required for any other reason the 88 record type can be used to continue the previous record. A record type 88 can only follow a record type 03 (Account Identifier), 16 (Transaction Detail) 0r 88 (Continuation Record)

• Record Code – 88
• Next field

BAI2 Format – Account Trailer – 49

• Record Code – 49
• Account Control Total – Sum of all the Amount fields in the preceding 03 (Account Identifier) and all 16 (Transaction Detail) records
• Number of Records – Total number of records for the account – including the 03, all 16 and 88 records and this 49 record

BAI2 Format – Group Trailer – 98

• Record Code – 98
• Group Control Total – Sum of all control totals in this group
• Number of Accounts – The number of 03 records in this group
• Number of records – The number of records in this group – including the 02, all 03, 16, 49 and 88 records, and this 98 record

BAI2 Format – File Trailer – 99

• Record Code – 99
• File Control Total – Sum of all control totals in the file
• Number of Groups – The number of 02 records in this file
• Number of Records – Total number of records in this file, including this 99 record

*Please refer to the Cash Management Balance Reporting Specification, version 2 documentation for specific codes / values.

Always remember to check and work with your bank to ensure they’re not doing something bespoke for a given field / value. Hope that helps !