Create remittance for direct debiting or factoring in (ARS410)

Use the function 'Remit Direct Debit and Factoring. Open' (ARS410) to select and send customer invoices to the bank for direct debit payments or to a factoring company.

Flowchart

This diagram shows the functions and printouts for (ARS410):

Create Remittance for Direct debiting or Factoring in (ARS410) flowchart

These are the programs, documents, and reports generated for this function:
  • Programs for this function:
    Program Description
    ARS410 Proposal level with the total amount per remittance number and remittance order number
    ARS411 Detail level with the total amount per payer and document number
    ARS412 Invoice level with the amounts for each invoice
    ARS413 Payment information per document
    ARS415 Selection panel used when creating the proposal
  • Documents and reports for this function:
    Documents and reports Description
    ARS414PF Remittance proposal.
    These are the alternatives:
    • For related option 9-'Confirm', an MBMEVENT is created for document number 526 if specified in (CRS945).
    • For related option 8-'Preliminary/Copy', an MBMEVENT is created for document number 526 regardless of status.
    ARS416PF Remittance error report
    ARS419PF Remittance payment advice or specification:
    • Payment advice if the printout is generated with related option 6-'Print payment advice' for a proposal in status 20.
    • Payment specification if the printout is generated with these alternatives:

      Related option 6-'Print payment advice' for a proposal in status 90 or 95.

      Related option 9-'Confirm'.

      Related option 8-'Preliminary/copy' for a proposal in status 90 or 95.

Limitations

This functionality replaces the bank remittance function for payment class 5 (Direct debiting) and payment class 6 (Factoring) in 'Bank Remittance. Open' (ARS300). You cannot manage these payment classes in both functions simultaneously. When you run this feature, you can no longer create or confirm proposals in (ARS300). Therefore, you must complete any open remittance proposals before switching functions.
Note: You can still display proposals in (ARS300) and reconcile proposals in status 9='Confirmed' through 'Bank Remittance. Reconcile Payment' (ARS350).

Outcome

All customer invoices that belong to payment class 5 (Direct debiting) or 6 (Factoring) that match the specified selection criteria are included in a printed or electronic remittance statement. These lists are printed:
  • Remittance proposal: ARS414PF
  • Remittance error report: ARS416PF
  • Payer debiting statement: ARS419PF (not for factoring)
  • Customer payment journal: GLS041P3 (not for electronic confirmation)
  • Accounting journal: GLS041PF (not for electronic confirmation)

Direct debiting

Invoices are closed for payment methods where the 'Electronic confirmation' check box is left blank in 'Payment Type. Open' (CRS078).

This table shows the account entries created:
Accounting rules Account Debit Credit
* Customer x
AR75-193 Direct debiting remitted x
AR75-310 Cash discount ** x

*: Account entry based on the customer invoice.

**: VAT transactions are created if you selected alternative 2 or 3 for the 'VAT method – cash discount' for the FAM function AR81 in 'FAM Function. Open' (CRS405).

Invoices remitted using a payment method where the 'Electronic confirmation' check box is selected in (CRS078) remain open, but are excluded from new remittance proposals.

See Reconcile customer payments through direct debiting or factoring in (ARS410).

Factoring

The invoices are closed and assigned the remittance status 20=Remitted.

This table shows the basic account entries created:
Accounting rules Account Debit Credit
* Customer x
AR75-194 Factoring remitted x
AR75-192 Factoring charge (per invoice or voucher) x

*: Account entry based on the customer invoice.

Before you start

Before you start, you must meet these prerequisites:
  • Define these number series types per division in 'Number Series. Open' (CRS165):
    • Number series type RM, number series 0 for remittance proposal numbers.
    • Number series type 82, number series 0 for direct debiting numbers.
  • Ensure that the FAM function AR81 exists in 'FAM Function. Open' (CRS405).
  • Define the accounting types for the accounting event AR75 (Bank remittance) in 'Accounting Rule. Set' (CRS395).
  • Define document number 501 with document variant 10 for the 'Payer debiting statement' in 'Std Document. Connect Media Ctrl Object' (CRS945) to enable partner media.
  • Define document number 526 for the 'Remit of Direct debiting and Factr' in (CRS945) to enable partner media.
  • Ensure that AR additional information numbers 210, 223, 230 and 262, 266, 267 and GL additional information numbers 023, 025, 062 exist in 'AR Additional info. Update (ARS950)' and 'General Ledger. Update Additional Info' (GLS950), respectively.
  • Define records in 'Manage Fields in MI Strings. Open' (CRS485) for ARS410MI-Remittance to manage payment information, external ID, and internal ID for payment transactions. This is only required for payment methods with the information activated in 'Payment Method. Open' (CRS076).
  • To view the configuration required for a specific Financial Business Message (FBM), see the Country Configuration Guide.
  • Specific starting conditions for direct debiting.
    • Define at least one payment method for direct debiting in 'AR Payment Method. Open' (CRS076). This payment method controls which day to use as the payment date and whether an agreement must be registered for the customer in 'Direct Debiting Agreement. Open' (ARS450). If an agreement is required, you must perform the activity described in Managing Direct Debiting Agreements before the first remittance.

      See Managing direct debiting agreements.

    • Select the 'Credit note surveillance' check box in (CRS078) to avoid negative payments. These payments are automatically blocked with status 5-'Zero/negative total amount'.
  • Specific starting conditions for factoring.

    You must perform the activity described in Preparing for factoring.

Creating a remittance proposal

Follow these steps to create a remittance proposal:
  1. Create a proposal in (ARS410) by specifying the selection criteria on 'Remit Direct Debit and Factoring. Select' (ARS415/E).
  2. Most fields on (ARS415/E) are used for selection purposes. The remittance date and company bank account are required fields. For the selection and validation of the currency of the company’s bank account and the invoices, these rules apply:
    • If electronic confirmation is used, you can include all currencies, provided that the bank account currency is the local currency.
    • If electronic confirmation is not used, invoices in a currency different from the bank account currency are placed on the error list ARS416PF.
    • For SEPA, regardless of electronic confirmation, only invoices with the same currency as the bank account are included. Invoices in other currencies are not placed on the error list.
  3. If no payment type or payment method is specified in the selection, you must specify the 'To due date' field.
  4. For payment types defined for SEPA direct debiting, you must enable the option to include payments on the next remittance date by activating the parameter 'SEPA DD incl'.
  5. To adjust the proposal, see Reconcile customer payments through direct debiting or factoring in (ARS410).

Confirming the proposal for direct debiting without electronic confirmation and factoring

Follow these steps to confirm the proposal for direct debiting without electronic confirmation and for factoring:
  1. On (ARS410/B), use the related option 9-'Confirm'.
  2. On (ARS415/G), specify the remittance confirmation date and accounting date.
  3. Choose whether to generate a separate accounting voucher for each payment document by enabling the 'Sep vch per doc' parameter. If this option is not selected, a single voucher is retrieved for the proposal and order number. We recommend that you select the check box, especially for SEPA-DD, to facilitate the reversal of a payment in case of rejection.

    See Reconcile customer payments through direct debiting or factoring in (ARS410) to reverse a payment document in case of rejection.

  4. Choose whether to create accounting transactions for remitted direct debiting (AR75-193) or remitted factoring (AR75-194) and charges (AR75-192) per voucher number by enabling the 'One remit trans' parameter. If this option is not selected, transactions are created per invoice.

The remittance status is set to 90='Confirmed', waiting for the bank confirmation for reconciliation as described in Reconcile customer payments through direct debiting or factoring in (ARS410).

Confirming the proposal for direct debiting with electronic confirmation

Follow these steps to confirm the proposal for direct debiting with electronic confirmation:
  1. On (ARS410/B), use the related option 9-'Confirm'.
  2. On (ARS415/G), specify the remittance confirmation date.

The remittance status is set to 95='Completed', waiting for the electronic bank feedback for processing in 'Bank Statement. Open' (ABS100).

Document break level during create of proposal

Invoices are grouped into a payment document per payer and payment date. This table shows the additional grouping fields depending on the payment type:
Type of payment Fields
Direct debiting - SEPA payment Customer’s bank account ID, agreement number, sequence type and purpose code
Direct debiting - other Customer’s bank account ID and agreement number if the 'Split per agreement number' is selected for the payment method
Factoring No additional fields

Reverse confirmation

If required, you can reverse the confirmation for a proposal with status 90='Confirmed' by using related option 13–'Reverse'. You can apply this process to the entire proposal on (ARS410/B). The status changes from 90='Confirmed' to 20='New'. You can also reverse a payment document on (ARS411/B). This action deletes the document and the connected invoices from the remittance and reopens the invoices so that they can be included in a new remittance proposal.
Note: In 'Voucher. Reverse' (GLS900), you can only reverse vouchers created in (ARS410) to a new accounting date.

Direct debiting agreements in 'Direct Debiting Agreement. Open' (ARS450) used for SEPA-DD, with or without electronic confirmation, do not reflect reversals of proposals or released invoices. To make changes to the agreement after reversing or releasing, you must manually update the agreement.

Creating a proposal with automatic confirmation

If you enable the 'Auto upd prop' parameter on the selection panel (ARS415/B), the proposal is created and confirmed in the same run. This automated workflow speeds up the process but prevents manual changes before the proposal is sent to the bank.

Creating a proposal with the job scheduler

You can create remittance proposals in (ARS410) with full support for job scheduling and job schedule cluster functionality.

See the M3 Business Engine User Documentation Library (Cloud) and select M3 Application Foundation > Job Management > M3 Business Engine Administrator's Guide for Job Scheduler > Scheduling functions in M3 BE job scheduler.

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