Direct Debit Procedure

To process direct debits, the following sessions are used:

  1. Select Invoices for Direct Debit (tfcmg4220m000)
  2. Audit Direct Debit Batch (tfcmg4255m000)
  3. Transfer Direct Debits (tfcmg4260s000)
Select Invoices for Direct Debit (tfcmg4220m000)

If, in the Payment/Receipt Methods (tfcmg0540m000) session, the Direct Debit Mandate Required and XML File check boxes are selected, a direct debit mandate is defaulted that is based on the customer for the direct debit document, customer’s bank, and the planned debit date. If there is more than one mandate, the mandate with the latest signature date is defaulted.

If in the Select Invoices for Direct Debit (tfcmg4220m000) session, the Select only initial Debit Mandates check box is selected, only invoices for which an initial debit mandate exists will be selected. Initial mandates are mandates that have sequence type FRST (First) or OOOF (One-off).

If the Select only non-initial Debit Mandates check box is selected, only invoices for which a non-initial debit mandate exists will be selected.

The mandate specified must satisfy the following criteria:

  • The customer for direct debit in the direct debit advice and the mandate must match.
  • The customer bank in the direct debit advice and the mandate must match.
  • The direct debit advice company, that is, the company in which the direct debit advice is created, and the payment company of the mandate must match.
  • The planned debit date must be after the mandate’s date of signature.
  • The planned debit date must be after the mandate’s first collection date, if specified.
  • The planned debit must not be after the mandate’s final collection date, if specified.
  • For a one-off collection, in which the Recurring Collection check box is cleared, the mandate is already used and cannot be reused.
Audit Direct Debit Batch (tfcmg4255m000)

If, for a direct debit batch with a receipt method that has the Direct Debit Mandate Required check box selected, the mandate is not specified, the audit process stops with an error message.

The business partner’s IBAN is audited if, in the Payment/Receipt Methods (tfcmg0540m000) session, the IBAN Account Required check box is selected. Then the BIC of the business partner's bank will also be audited assuming, in the XML Payment/Receipt Layouts (tfcmg0524m000) session, the tag representing the BIC is set to mandatory and selected.

Transfer Direct Debits (tfcmg4260s000)

If, in the Transfer Direct Debits (tfcmg4260s000) session, you select the Create Readable XML Output check box, the generated XML will be formatted for easy readability by adding extra spaces and tabs. This allows you to check for errors manually. We recommend that you clear this check box if the generated files are directly processed by another system.

When you transfer direct debits with a receipt method that has the XML File check box selected, an XML file is created on the server.