The Work with A/R payment proposals routine is used to collect SEPA Direct Debit payments. The SEPA Direct Debit functionality is a payment instrument for the collection of funds from a debtor’s account by a creditor via their banks as agreed between debtor (business partner) and creditor (company). This is based on an authorization, referred to as the “mandate”, which must be set up first.
The mandate can be issued in paper form or electronically. Mandates are created in Work with Direct Debit mandates. Note: The mandate expires 36 months after the last initiated collection. The signed mandate must be stored by the creditor as long as the mandate is valid, but at least for 14 months after the last collection.
Several mandates can be active for the same debtor, but only one mandate can be set up per SEPA Direct Debit payment mode in the Business partner file.
The actual data in Work with Direct Debit mandates must be maintained manually. The program also holds Amendment data, i.e. historic data, which will be updated when the collection file is created. If a payment is deleted after collection file creation, in Work with A/R payment proposals or in Work with accepts, then see the Delete payments after collection file creation section for details.
Note: It will not be possible to create mandates for sundry business partners.
Note: The SEPADD function must be activated in the Function control file to maintain the data.
Mandate statuses
The following statuses apply for a mandate:
As soon as the mandate is active (statuses 4 and 5), the debtor’s transactions, with a document date equal to or after the Ready to collect date of the mandate and with EUR as ISO currency or transaction currency code, will be included in the A/R payment proposal.
A/R payment proposal statuses
During the process, the payment proposal will go through the following statuses:
Mandate sequence types
The following codes, for the *SEQTYPE element from Work with ISO 2002 external code lists, apply:
| Type | Description |
|---|---|
| RCUR Recurring |
This type is used for regular Direct Debit transactions. A mandate defined with this sequence type can be used for multiple payments and must be manually closed. Note: You cannot close a mandate that exists in a payment proposal. |
| OOFF OneOff |
This type can only be used for a single Direct Debit transaction. If a mandate is defined with this sequence type, then only one single payment will be included in the A/R payment proposal.
The mandate will be automatically closed as soon as the collection file is created. If this payment is deleted in Work with A/R payment proposals or in Work with accepts, then the used mandate will automatically be active again. |
Collection file creation
The collection file is created in Work with A/R payment proposals, by selecting the Collection to bank option on the main panel. The file is transformed to an XML file, which is stored on the IFS. The “actual mandate data” in the collection file is retrieved from different places, such as:
| Actual mandate data | From table/file |
|---|---|
| Signature date, Creditor ID, Previous mandate ID | Work with Direct Debit mandates |
| Bank account number (IBAN), Bank Identifier Code (BIC) | Business partner file |
| Company name | Work with companies |
Process
The following section describes the mandate handling process. It differs depending on the sequence type of the mandate. See Mandate sequence types above.
| The first time a mandate is included in a collection file, the following fields are updated for the mandate: | Field/Section | Description | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Collection date | This is the date when the collection file was created. | ||||||||||||||||
| First payment date | This is the date when the mandate was included in the collection file for the first time. The date prevents the mandate from being included in new collection files with a payment date before this date. | ||||||||||||||||
| Original information | The fields in this section are updated with the latest “actual mandate data” from the collection file. The saved data is: Mandate ID, Creditor ID, Bank account number, Bank Identifier Code and Company name. | ||||||||||||||||
| Closed date | This field is set to the payment date for mandates with the OOFF sequence type, since the mandate is consumed. | ||||||||||||||||
| Status | The status will be “Closed” for mandates with the OOFF sequence type, since the mandate is consumed. A closed mandate cannot be used any more, but if needed you can recreate and resend the collection file to the bank. | ||||||||||||||||
| The next time a mandate (defined with the RCUR sequence type) exists in a new collection file, the following fields are updated for the mandate: | Field/Section | Description | |||||||||||||||
| Collection date | This field is set to the date when the collection file was created. | ||||||||||||||||
| Original information | The fields in this section are updated with the “actual mandate data” from the latest collection file in which the mandate was included. The saved data is: Mandate ID, Creditor ID, Bank account number, Bank Identifier Code and Company name. | ||||||||||||||||
| Amendment details | The fields in this section (same fields as under Original information plus the respective date fields) contain amendment data from the latest collection file and the date fields display the latest payment dates for when the amendment was created.
Amendment details must be included in the next collection file if one or more of the “actual mandate data” fields have been changed after the previous created collection file. To keep track of whether Amendment details need to be created or not, the system stores the “actual mandate data” from the latest collection file in the Original information fields. From the second time that a mandate is included in the collection file, the system compares each individual “actual mandate data” field with the corresponding Original information field and if there is a difference, then the system includes the Amendment data. Example
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| Payment update | When the proposal is updated, depending on the setup in Work with A/R payment modes, Payment updated is set to YES for the mandate when the first payment is either transferred from the Update A/R payment proposals routine to the A/R or from the Accept A/R payment proposals routine (Wait for accept) to the A/R. If it is YES, then the status cannot be reset to “Ready to collect” if the payment sent to the bank is deleted in Work with A/R payment proposals or Wait for accept. | ||||||||||||||||
Delete payments after collection file creation
OOFF
A mandate defined with the OOFF sequence type exists only on a single payment. After the collection file is created the mandate is consumed and automatically closed. If this payment then is deleted in Work with A/R payment proposals or in Wait for accept, the used mandate will automatically be active again and the following fields are updated for the mandate:
| Field/Section | Description |
|---|---|
| Status | This field is set to “Ready to collect”. |
| Active | This field is set to YES. |
| Collection date | The date is removed. |
| First payment date | The date is removed. |
| Closing date | The date is removed. |
| Original information | All fields are removed. |
| Amendment details | All fields are removed. |
| Payment updated | This field is set to NO. |
RCUR
A mandate defined with the RCUR sequence type exists on multiple payments. If a payment is deleted in Work with A/R payment proposals or in Wait for accept after the collection file was created, then the mandate will be updated if:
| Field/Section | Main rules |
|---|---|
| Mandate status | Mandate status must be 5; Mandate is active and a collection date exists. |
| Payment updated | The Payment updated field must be NO. |
| Amendment details | The amendment details do not exist. |
If all the conditions above, the main rules, are true and the mandate does not exist in any other payment for proposals in status 30 (Collection to bank created) or 60 (Updated), then the following fields are updated for the mandate:
| Field/Section | Description |
|---|---|
| Status | This field is set to “Ready to collect”. |
| Collection date | Date is removed. |
| First payment date | Date is removed. |
| Original information | Data in the fields in this section is removed. |
If all conditions above, the main rules, are true, but the mandate exists in a payment for proposals in status 30 (Collection to bank created) or 60 (Updated) and the found payment’s payment date > first payment date for the mandate, then the following field is updated:
| Field | Description |
|---|---|
| First payment date | This field is updated with the first payment date in the proposal. |