The main forms of settlements in on-farm turnover

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Payment order​

Among all forms of non-cash settlements on the territory of the Russian Federation, the most widespread are settlements using a payment order, for which

Chapter 2. Forms and instruments of bank settlements

in 2009 accounted for about 60% of the total number of credit transfers and 99.4% of their total volume, which is comparable to 2008 | Bank of Russia, 2011].

A payment order is an order of the owner of the account (payer) to the bank that serves him, to transfer a certain amount of money to the account of the recipient of funds, opened with this or another bank. This order on the territory of the Russian Federation is valid for 10 working days, excluding the date of issue of the payment order.

If the payer does not have enough funds on the account to make the transfer and there is no agreement with the bank on automatic crediting of settlement transactions, a special form of deferred payment is applied - placing a payment order in the card index of unpaid settlement documents. At the same time, the bank reflects the deferred payment on the off-balance sheet account “Settlement documents not paid on time”. Payment from the payer's account according to such documents is carried out only as funds are received on his account. The payer's bank first of all pays off the payer's debt to state and local budgets, the Pension Fund, employment and health insurance funds, etc.

The requirement to have sufficient funds in the payer's account to make a payment relieves banks from settlement risks. However, if an overdraft is granted, the bank is exposed to the customer's credit risk.

The recipient of the money (it can be either a supplier of goods or services, or a creditor) must take into account the risks that may arise from either the payer or the correspondent banks. In the first case, the payer may untimely issue a payment order due, for example, to insufficient money in the current account or deliberate delay in the transfer. On the part of the bank, a delay in payment may arise as a result of untimely crediting of money or a lack of liquid funds.

Settlements by means of payment orders are often used in settlements for goods and services, as well as for transactions that are of a non-commodity nature. For example, payment orders are used to pay for the following commodity transactions:

• - transfer of funds for the goods supplied, work performed, services rendered;
• - transfer of funds when making payments for goods and services by decision of a court and arbitration without acceptance;
• - transfer of funds towards payment of lease payments for the use of real estate;
• - transfer of funds to transport, utilities, household enterprises.

Among non-commodity transactions, which can be paid by using a payment order, it is worth highlighting:

• - settlements with budgets, extra-budgetary funds, state and social insurance bodies;
• - transfer of funds for the purpose of servicing and paying off debt, placing free funds on a deposit with a bank;
• - transfer of funds towards payment of the authorized capital when establishing joint-stock enterprises, etc .;
• - purchase of securities, including certificates of deposit, bank bills, etc.

The scheme of settlements by means of payment orders is shown in Fig. 2.2. It includes 6 main stages:

• 1. The supplier has completed the work, delivered products, rendered services.
• 2. The buyer submits the payment order to the bank in four copies.
• 2a. The buyer receives from his bank the fourth copy of the order as a bank receipt together with a statement of the current account.
• 3. The buyer's bank, on the basis of the first copy of the payment order, debits the funds from the buyer's current account.
• 4. The buyer's bank sends two copies of the payment order to the supplier's bank and transfers the funds to the supplier's name.
• 5. The supplier's bank, using the second copy of the payment order, credits the funds to the supplier's current account.
• 6. The bank issues to its client a statement of his current account and a third copy of the payer's payment order with the bank's mark of its execution.

If the contract between the payer and the supplier provides for the payment of an advance payment, then at stage 1 the supplier sends a notification to the buyer, in which he notes that the goods are ready for shipment. After receipt of the advance payment, i.e. at stage 6, the supplier ships the goods to the buyer's address, sends him documents of title through his bank, which then sends them to the buyer's bank.

However, there are restrictions on the execution of settlements by payment orders on the territory of the Russian Federation, for example, in relation to the procedure for transferring taxes, customs payments and other obligatory payments, including to the budgets of all levels and state extra-budgetary funds [see: Tax Code of the Russian Federation, Part 2, Art. ... 174, p. 4; Bank of Russia Letter No. 277; Bank of Russia Letter No. 172-T].