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This document is a brief description of the working process.

Step	Description
1: Mandate (agreement)	Before a collection is sent to the bank a mandate (agreement) must be set up between the creditor (company) and the debtor (business partner). In Financials this will be handled via a separate Mandate table, which will hold information about the status of the mandate, such as when the mandate was signed, when it is ready for collection. The mandate will also hold information about the debtor’s bank, the creditor ID (identifier) and some other information. Several mandates can be active for the same debtor, but only one mandate can be set up per A/R payment mode in the Business partner file.
2: Issue of invoices/credit notes and pre-notification	This is an extract from the SEPA Direct Debit Scheme Rulebook concerning the pre-notification: Prior to the sending the collection to the creditor bank, the creditor notifies the debtor of the amount and due date. This notification may be sent together with or as part of other commercial documents, e.g. an invoice, or separately. The pre-notification could also include: The schedule of payments for a number of repetitive Direct Debits for an agreed period of time. An individual advice of collection for a collection on a specified due date. The creditor and the debtor may agree on another time-line for the sending of the pre-notification. The pre-notification must be sent by the creditor at the latest 14 calendar days before the due date unless another time-line is agreed between the debtor and the creditor. When issuing invoices in Distribution customer notes may be used for the pre-notification. When issuing invoices in the Sundry Invoicing Procedure module the text for the pre-notification may be entered as a header or a footer text. The Print remittance advice routine in Work with A/R payment proposals is used to print a remittance advice either on your local printer or to send it via email to selected debtors, which may be used as a pre-notification.
3: Collection to bank	The Collection to bank routine in Work with A/R payment proposals is used to create the collection file and map it to an XML file, which is then stored in a folder on the IFS according to the set-up in the IFS communicator type table. The XML file is created according to the EPC layout for Direct Debit. For more information see About SEPA Direct Debit. It is possible to recreate and re-send the collection file to the bank if the Recreate collection field is set to YES on the SEPA Direct Debit data panel in Work with A/R payment modes.

Step

Description

1: Mandate (agreement)

Before a collection is sent to the bank a mandate (agreement) must be set up between the creditor (company) and the debtor (business partner).

In Financials this will be handled via a separate Mandate table, which will hold information about the status of the mandate, such as when the mandate was signed, when it is ready for collection. The mandate will also hold information about the debtor’s bank, the creditor ID (identifier) and some other information. Several mandates can be active for the same debtor, but only one mandate can be set up per A/R payment mode in the Business partner file.

2: Issue of invoices/credit notes and pre-notification

This is an extract from the SEPA Direct Debit Scheme Rulebook concerning the pre-notification:

Prior to the sending the collection to the creditor bank, the creditor notifies the debtor of the amount and due date. This notification may be sent together with or as part of other commercial documents, e.g. an invoice, or separately.

The pre-notification could also include:

The schedule of payments for a number of repetitive Direct Debits for an agreed period of time.
An individual advice of collection for a collection on a specified due date.

The creditor and the debtor may agree on another time-line for the sending of the pre-notification. The pre-notification must be sent by the creditor at the latest 14 calendar days before the due date unless another time-line is agreed between the debtor and the creditor.

When issuing invoices in Distribution customer notes may be used for the pre-notification. When issuing invoices in the Sundry Invoicing Procedure module the text for the pre-notification may be entered as a header or a footer text.

The Print remittance advice routine in Work with A/R payment proposals is used to print a remittance advice either on your local printer or to send it via email to selected debtors, which may be used as a pre-notification.

3: Collection to bank

The Collection to bank routine in Work with A/R payment proposals is used to create the collection file and map it to an XML file, which is then stored in a folder on the IFS according to the set-up in the IFS communicator type table. The XML file is created according to the EPC layout for Direct Debit. For more information see About SEPA Direct Debit.

It is possible to recreate and re-send the collection file to the bank if the Recreate collection field is set to YES on the SEPA Direct Debit data panel in Work with A/R payment modes.

SEPA Direct Debit process

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