Customer direct debits

When a vendor has an agreement with a customer to collect payments automatically, the vendor sends a payment request message to the vendor's bank. The vendor's bank is prompted to collect the customer payment by requesting money from the customer's bank. Typically, the communication between the vendor and the bank is electronic.

A remittance advice, manual or electronic, is sent by a vendor to the customer to indicate which invoices are being paid. Typically, they include invoice numbers and invoice amounts.

Sweden specifics

Direct debit (Bg Autogiro) is based on a mandate between company and customer for payment to be automatically deducted based on agreement. Payments are made automatically on the due date. This process helps to track your cash flow, because you are paid on time. It also helps your customers because they are not required to keep track of bills and due dates or risk late payment charges.

The account holder submits to the bank BankGiro or PlusGiro payment slips and money orders that were issued to the customer. The PlusGiro account enables crediting or depositing the amounts from the payment slips and money orders into the bank account.

How Infor meets this requirement

A mandate, which is an agreement between your company and the customer to use direct debits for payment, must be made before banks will allow direct debits to occur. The mandate gives your company’s bank the authority to collect money on your behalf from other banks through bank-to-bank transactions.

In this case, your company collects payment from customers electronically through EFT direct debit payments from their bank account to yours. When you post a direct debit payment in SyteLine, a DebitTransfer BOD is generated and sent to ION, which uses Infor Localization Services components to transform the content of the BOD into an EFT file in an appropriate format, dependent on the detection values that are configured.

The formatted file is downloaded to a local server (for the Cloud, this is handled through a file transfer utility).

Your company’s bank retrieves the file using a secure retrieval method that is determined by the bank. The information in the file generates a direct debit banking transaction, informing the bank to move the funds from the customer's bank and account to your company's bank and account. Your company's bank then initiates an EFT to the customer’s bank to have the funds transferred by a bank-to-bank EFT.


Application	Setup or Actions
ION Desk	The Planning worksheet lists the BODs, document flows, etc., needed for Customer Direct Debits (Debit Transfers). It also shows the proprietary Direct Debit message formats that are supported by this ERP for this country. Use this information with the integration guide to set up the flow.
ERP	For application setup and usage, see the help topic Setting up A/R Direct Debits.