TWIST BSB and ISO BSB

Things are going international.  Or, things have gone international.  Actually, things have always been international but certain someones are late to the party.

When I began my career in Account Analysis, I familiarized myself with the ANSI X12 EDI 822 file; the domestic account analysis statement.  I learned the different versions of the 822; the various segments a bank can send; each position of those segments; how to read and interpret its data; and how to reformat or make minor corrections to the file, if needed.  I like to think I became an expert then along came the BSB and I realized something; you're only an expert until something new falls on your desk.

The TWIST BSB.  What is TWIST?

The Transaction Workflow Innovation Standards Team (TWIST) is a not-for-profit industry group with representatives from several key constituents.

What is a BSB? A Bank Service Billing (BSB) is a standard digital file for bank billing of primarily international services. 

As I stated earlier, the 822 file is for domestic use while the BSB is for international use accommodating various currencies, taxes, and utilizing international bank and account field codes.

Now, the ISO 20022 BSB is the new new. 

What is ISO? 

Industry Organization for Standardization.  Wait, that's IOS not ISO. I know...it confused me too in the beginning but I just rolled with it.

Here you can find more information about the ISO 20022 (camt.086) which is a "standardization approach used by all financial standards and initiatives".  I haven't gotten my hands on an actual ISO BSB yet since most financial institutions are still trying to create a good one....but, I'm sure I will very soon.  From my experience, having to correct a  file is the best way to learn about its components.

So, what's the difference between an 822 and a BSB file?

For starters, taxes usually aren't sent on an 822 file but they are definitely formatted to be sent in the TWIST BSB and also the ISO BSB.

There are a lot more currency types found in a BSB file than in an 822 file.

The formatting of data will look different and have different tag names between the 822 and BSB.

822 files are usually sent with an .822, .txt, doc, or .docx extension.  BSB files are sent with an .xml extension.

There's way more to it than that but the point was to explain the high-level differences and define each.

With the new ISO BSB, AFP Global Codes, and the slow but positive embrace of international accounting practices along with creating a standard for international treasury and account analysis, I foresee good things ahead.

Until then, happy analyzing!