Customer direct debiting

Requirement

Direct debiting is a reversed customer payment process. The supplier is given the authority from the customer to withdraw the relevant amount from the customer’s bank account on the due date. The process follows this logic:

1. The invoice must show this text: ‘Do not pay this invoice – it will be paid according to direct debiting’.
2. Before the due date, the supplier asks the bank to withdraw the amount from the customer’s account on the due date. This operation is performed though an electronic message.
3. The supplier receives the cash through another electronic message from the bank in the ordinary cash receipts function.

This country is a member state of the Single Euro Payments Area (SEPA). The SEPA rules stipulate that valid direct debit agreements exist before payments can be recovered using the SEPA direct debiting method.

The SEPA direct debiting format is based on the general ISO 20022 standards. These specifications are based on the SEPA Direct Debit Core Rulebook.

M3 solution

Customer payments can be collected through direct debiting. The existence of a valid direct debiting mandate within ‘Direct Debiting Agreement. Open’ (ARS450) is checked.

The bank remittance proposal, created in ‘Bank Remittance. Open’ (ARS300), is used to select the invoices and credit invoices that are to be included within a direct debit remittance run. On update of the proposal, a detailed electronic payment file is created using Infor Localization Services GEMS and remittance documents are produced.

Confirmation is received from the bank and any failed collections can be deleted and communicated, using a standard letter, to the customer. Confirmed payments are reconciled.

The SEPA electronic customer payment message is delivered with this country version. For this country version, this message has been adapted, as made available in Infor Localization Services GEMS, ‘Customer Direct Debits - 100019’: ‘IT – Debit Transfer pain008 – CBI’.

Configuration guidelines

Program ID	Program name	Description or comment
CRS610/J CRIT10/E	Customer. Open	For the detailed configuration guidelines for the applicable tax numbers per customer type, see Tax registration number.
ARS050	Payment Received. Open Standard Letter	To inform customers of failed collections, create a standard letter of type 1.
ARS300	Bank Remittance. Open	Create a proposal. To create the output file, confirm the proposal.
ARS350	Bank Remittance. Reconcile Payment	Delete failed collections and send a standard letter. Reconcile the payment when it is correct and complete.

See the Infor M3 Core Configuration Guide for Infor Localization Services GEMS for the detailed configuration guidelines for the applicable message.