Creating direct debits is a standard functionality of BC. Due to the complexity of the whole process, this process is described in this chapter.
Documentation in this area is available from MS here: SEPA Direct Debit in Dynamics NAV - Dynamics NAV | Microsoft Learn
A prerequisite is the correct setting in all areas described Finance Setup
This documented area describes how direct debits are created and posted.
Now, search and open the page Direct debits. Use the New and Create direct debit buttons to start setting up a new direct debit order.
Fill out the dialog box.
From Due Date and To Due Date
Period for selecting Customer Items according to their Due Date
Both dates must be filled in
Partner Type
Customers are selected according to the settings on the Customer Card on the Payments tab
Select one of the options (Company or Person)
It is not possible to issue one direct debit order for both types at the same time
Only customers with a valid permit
If this option is enabled, then only those customers who have a valid Direct Debit Authorization in the given period are selected for the direct debit order. If not turned on, then all customers are processed.
The system checks whether the authorization is valid only on the Customer card, the authorization ID does not have to be filled in on the invoice (e.g. for invoices posted through the registration of the collection authorization)
Only invoices with a valid permit
If the field is ON, then only Customer Ledger Entries with a valid Permit ID are selected
Bank Name
Name of the selected bank account of the company, it is downloaded from the Bank Account Card automatically
Customer Tab
You can further restrict the selection of items for a collection order by specifying your own filters on the Customer tab.
Notification:
Only Customer Entries of the Invoice type are included in Direct Debit Collection.
Since this is a SEPA direct debit, only items in EUR are suggested (depending on the country, EUR can be a local or foreign currency).
Confirm the OK button to start the creation of the direct debit order. The user is informed about the result by the message:
After the direct debit order is successfully created, a new row is based on the Direct Debits report. Collection order status is "New"
You can view the content of the created collection order by clicking on the Direct Debit Entries button or by clicking on the Number of Transfers field or the Number field.
When clicked, you will see a list of invoices proposed for collection.
The following information is copied from the Customer Ledger Entry (Invoices):
Customer No.
Customer Name
Applies Item No.
Customer Entry No. (Invoices)
Applied Entry Document No.
Document No. (Invoices)
Application Entry Description
Posted Date of the Applied Entry
Application Entry Currency Code
Invoice Currency
Applied Entry Amount
Original Invoice Amount in Invoice Currency
Applied Entry Balance
Current Unpaid Invoice Amount
Open Applied Entries
Current Invoice Status
In addition, the following fields are filled in on the Direct Debit Entry:
Transfer Date
Copied Due Date from Invoice
The transfer date must be at least current (today's) or higher
If the Transfer Date is lower than the current date, you must manually correct (overwrite) it
Currency Code
Direct debit currency code
For SEPA direct debit, the currency must be "EUR" (according to the company's country, if EUR is the local currency, the field will be empty, if EUR is a foreign currency, the code will be filled in)
Transfer Amount
Direct Debit Amount
You can manually adjust the suggested amount, but it can't be more than the invoice balance
Transaction ID
Direct debit number + sequential number of the direct debit entry separated by a slash
Permission ID
The customer's direct debit authorization identification number
The field is mandatory when exporting direct debits, the system will use it to check validity
If the authorisation ID is not entered on the Direct Debit Entry (e.g. the authorisation was registered on the customer card after the sales invoice was posted), you must fill in the authorisation number manually. You can only select from the customer's existing permissions. If the authorization is invalid, closed, or blocked, it can be added to the line, but an error window will show an error and the collection item will not be exported.
Sequence Type
Information about the order of collection for the permit.
For Payment Type Allowed = Periodic, sequences can be
First – the first recovery order of the authorisation
Last – the last direct debit order (according to the expected number of direct debits set)
Periodic – direct debit orders between the first and last direct debit
For Allowed payment type = One-time, the value One-off is filled in. This value is filled in even if the authorization ID is not filled in on the direct debit entry.
Status
The status of the collection order entry (line).
Depending on the functions used, it can have the following values:
New
After you create a new Direct Debit
File Created
Direct debit has been exported to an XML file
Rejected
The user used the Reject Entry function (e.g. the payment was not debited from the customer's bank account)
Posted
The user used the Post Received Payments function and generated or posted a journal from the Direct Debit.
Entry No.
Sequence number of the line within the given Direct Debit
Permit Payment Type
From the direct debit authorization, it is copied whether it is a periodic or one-time direct debit
If errors are found in the command line, they are displayed in the error window on the right.
In the Export File Errors Errors are always displayed for the line you are standing on. You can click on individual errors in the error window to view the error detail.
Before exporting the file, it is necessary to remove the errors (e.g. add SWIFT to the customer's Bank Account).
If you do not want to export an item proposed for a collection order, it is possible to delete it from the order by clicking on the Delete button before exporting it (the order status must be New).
By confirming the message, the selected lines of the collection order will be deleted and can be included again in another order.
After checking the collection order and removing any errors, export the order to a file in XML format. After the XML file is created, the status of the direct debit order changes to File created. You can also export the command repeatedly.
To start the export, click on Export direct debit file:
Save the file in a place where you can import it into the appropriate electronic banking application.
After you export a direct debit to a file, the Collection status changes to File created.
At the same time, the Direct Debit Authorization window (on the Customer Card) updates the Direct Debit Mandate field for the given Authorization ID.
If the direct debit order has been exported (Direct debit status is File created), but the payment has not been collected by the bank, it is possible to mark the direct debit item as "rejected".
In the Direct debit entries window, select the item that your bank failed to process, and then, on the Process FastTab, click Reject item.
After confirmation by the Yes button, the status of the direct debit entry will change to Rejected. A rejected Customer Ledger Entry can be resuggested to another order.
If the bank payment has been successfully collected from the customer, the payment can be posted. This can be done in two ways, depending on the internal processes:
Payment can be posted directly from Direct Debit
A payment can be posted as part of importing a bank statement in the Payment Reconciliation Journal.
You can start posting a collected payment from a Direct Debit by clicking on the Post Received Payments button, both from the list of direct debits and from the direct debit order lines.
When the task starts, a dialog box opens:
In the window, fill in the General Journal Template and the General Journal Batch in which the payments will be proposed. (Note: It is necessary to set up a Number Series on the General Journal Sheet)
In the Create journal only field, turn on:
NO if you want to charge immediately
YES if you want to check your payments before posting. In this case, the payments are only generated in the journal, where you must post them manually.
After confirming the OK button, the direct debit status will change to Posted and journal lines are generated.
Review the payments in the journal and post the journal.
After the payments have been posted, the Close direct debit button can be used to close the direct debit order.
After confirming the Yes button, the direct debit status switches to Closed.
Closed collections entries can't be exported, posted, or rejected.
You can also close a direct debit order if you don't charge payments from a Direct Debit, but from an imported bank statement.
Note: It is possible to close a direct debit from any Direct Debit Status, but no other actions can be performed on the direct debit.
On the Customer Card, check the posted Payments.
Payments are posted to the customer and settled with the invoices.
An up-to-date list of SEPA countries can be found here:
http://www.europeanpaymentscouncil.eu/knowledge_bank_detail.cfm?documents_id=328