SEPA (ISO 20022 XML) Direct Debit payments...7 SEPA (ISO 20022 XML) Direct Debit payments White...

SEPA (ISO 20022 XML)

Direct Debit payments This white paper describes the functionality in Microsoft

Dynamics AX that supports the Single Euro Payments

Area (SEPA) Direct Debit (ISO 20022 XML) payment

format and direct debit mandates.

July 2014

White paper www.microsoft.com/dynamics/ax

Send feedback.

http://www.microsoft.com/dynamics/ax

mailto:[email protected]

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SEPA (ISO 20022 XML) Direct Debit payments

White Paper

Contents

Executive summary 5

SEPA Direct Debit overview 5

Background and goal of SEPA Direct Debits 5

SEPA Core Direct Debit Scheme 5

SEPA Business to Business (B2B) Direct Debit Scheme 6

SEPA direct debits in Microsoft Dynamics AX 2009 SP1 6

Hotfix download instructions 6

Download and install the .xpo and label files 6

Verify that the SEPA export file formats are installed 6

Setup 7

Set up SEPA countries/regions as members of the European economic area 7

Set up a method of payment for SEPA direct debits 8

Set up company information 8

Set up company bank accounts for SEPA direct debits 8

Set up customers and customer bank accounts for SEPA direct debits 8

Belgium only: Set up Isabel electronic banking parameters 9

Transactions 9

Create and export payments using a SEPA payment format 9

SEPA direct debits in Microsoft Dynamics AX 2012 11

Hotfix download instruction 11

Download and install the .xpo and label files 11

Setup 11

Set up legal entity information 11

Set up company bank accounts for SEPA direct debits 11

Set up customers and customer bank accounts for SEPA direct debits 11

Belgium only: Set up Isabel electronic banking parameters 12

Set up an outbound integration port for payments 12

Transactions 12

Create and export payments using a SEPA payment format 12

Country/region-specific information 14

FAQ – Frequently asked questions 16

Will I have to install software updates to Microsoft Dynamics AX to comply with SEPA Direct Debit requirements? 16

When will Microsoft deliver software updates for compliance with SEPA Direct Debit requirements? 16

For which versions will software updates be released to support SEPA Direct Debits? 16

Why will software updates not be released for other versions? 16

How will I know when software updates are available for Microsoft Dynamics AX? 16

My country/region or bank has a specific format that is different from the format supplied in Microsoft Dynamics AX.

How can I modify this? 16

What can I do to prepare for SEPA Direct Debits? 16

What are International Bank Account Numbers (IBAN) and Bank Identifier Codes (BIC)? 16

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Where do I enter creditor identifiers (Direct debit IDs)? 16

Where do I specify the SEPA Direct Debit file format (ISO 20022)? 16

In what file formats can I generate SEPA direct debit payment files? 17

How do refunds and returns work with SEPA direct debits? 17

SEPA Direct Debit Mandate Overview 18

SEPA Direct Debit Mandates in Microsoft Dynamics AX 2009 SP1 18

Setup 18

1. Set up a number sequence for direct debit mandates 18

2. Set up Accounts receivable parameters for direct debit mandates 18

3. Set up a method of payment for direct debit mandates 19

Transactions 20

Add direct debit mandate information to a customer record (AX 2009 SP1) 20

1. Add direct debit mandate information to a customer record 20

2. Optional: Generate a mandate for the customer to sign and return 21

3. Optional: Attach a scanned mandate to the customer record 21

4. Optional: Cancel a mandate 21

Enter an invoice or transaction for a customer that has a direct debit mandate (AX 2009 SP1) 22

1. Enter a free text invoice for a customer that has a direct debit mandate 22

2. Optional: Print a direct debit mandate notification report 22

Create payments for customers that have direct debit mandates (AX 2009 SP1) 22

1. Create a payment proposal for customers that have direct debit mandates 22

2. Optional: Verify mandate information for customer transactions 23

SEPA Direct Debit Mandates in Microsoft Dynamics AX 2012 23

Setup 23

1. Set up a number sequence for direct debit mandates 23

2. Set up Accounts receivable parameters for direct debit mandates 23

3. Set up a method of payment for direct debit mandates 24

Transactions 25

Add direct debit mandate information to a customer record (AX 2012) 25

1. Add direct debit mandate information to a customer record 25

2. Optional: Generate a mandate for the customer to sign and return 26

3. Optional: Attach a scanned mandate to the customer record 26

4. Optional: Cancel a mandate 26

Enter an invoice or transaction for a customer that has a direct debit mandate (AX 2012) 27

1. Enter a free text invoice for a customer that has a direct debit mandate 27

2. Optional: Print a direct debit mandate notification report 27

Create payments for customers that have direct debit mandates (AX 2012) 27

1. Create a payment proposal for customers that have direct debit mandates 27

2. Optional: Verify mandate information for customer transactions 28

FAQ – Frequently asked question 28

Can I use the COR1 scheme for direct debit mandates? 28

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Appendix – Mandate examples 29

References 30

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Executive summary The Single Euro Payments Area (SEPA) is an area set up by the European Commission, in which all electronic payments

are considered domestic, regardless of the country/region in which the individual, business, or organization, and the

bank are located. Within this area, there will be no difference between national and cross-border payments. The SEPA

includes the 28 European Union (EU) member states, as well as Iceland, Liechtenstein, Norway, Switzerland, and

Monaco. The SEPA helps form a single market for payment transactions within the European Economic Area (EEA).

Ultimately, the SEPA is expected to reduce the number of payment formats that banks, businesses, and individuals must

work with.

The European Commission established the legal foundation for SEPA payments through the Payment Services Directive

(PSD). The European Payments Council (EPC) supports the SEPA by:

• Setting the standards for SEPA electronic payments by using the ISO 20022 Universal financial industry message

scheme XML format.

• Setting rules and guidelines regarding the handling of euro payments.

The EPC, which consists of European banks, develops the commercial and technical frameworks for SEPA payment

instruments. Three types of SEPA payments are planned:

• Credit transfers – Supported in Microsoft Dynamics AX 2009 SP1, Microsoft Dynamics AX 2012, and Microsoft

Dynamics AX 2012 R2.

• Direct debits and direct debit mandates – Currently supported in Microsoft Dynamics AX 2009 SP1, Microsoft

Dynamics AX 2012, and Microsoft Dynamics AX 2012 R2.

• Cards – Is not supported at this time.

This white paper describes the SEPA Direct Debit (SDD) formats and Direct Debit Mandates that are available for

Microsoft Dynamics AX, and how to install, set up, and use them.

SEPA Direct Debit overview

Background and goal of SEPA Direct Debits

A SEPA Direct Debit allows a creditor to collect funds from a customer’s bank account, provided that a signed mandate

has been granted by the customer to the creditor. The customer signs a mandate authorizing the creditor to coll ect a

payment and instructing the customer’s bank to pay the collection.

SEPA Direct Debits create, for the first time, a payment instrument that can be used for both national and cross-border

euro direct debits throughout the 32 SEPA countries/regions.

As of February 1, 2014, SEPA Direct Debits will be mandatory for this type of transaction within the euro area.

There are two schemes available: the SEPA Core Direct Debit Scheme and the SEPA Business to Business (B2B) Direct

Debit Scheme. Both of the SEPA schemes use the same file format.

SEPA Core Direct Debit Scheme

The SEPA Core Direct Debit Scheme is the basic scheme. It has the following attributes:

• The transfer of funds is in euros (even though the bank accounts may hold funds in other currencies).

• The customer and creditor must each hold an account with a credit institution located within the SEPA.

• The customer must grant a signed mandate to the creditor.

• Mandates expire 36 months after the last initiated collection.

• The creditor must store mandates for as long as the mandate is valid and for at least 14 months after the last

collection.

• The scheme may be used for single (one-off) or recurrent direct debit collections.

• Customers have a “no questions asked” right to receive a refund for up to eight weeks after the debit of their

account.

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SEPA Business to Business (B2B) Direct Debit Scheme

The SEPA B2B Direct Debit Scheme applies to business-to-business transactions and builds on the SEPA Core Direct

Debit Scheme. The main differences are:

• The SEPA B2B Direct Debit Scheme is not allowed when the customer is a private individual (consumer).

• The customer is not entitled to obtain a refund of an authorized transaction.

• Customer banks must ensure that the collection is authorized, by checking the collection against mandate

information. Customer banks and customers are required to agree on the verification that will be performed for

each direct debit.

• The scheme offers a shorter timeline for presenting direct debits and reduces the return period.

The SEPA direct debit payment format is available for the following versions:

• Microsoft Dynamics AX 2009 SP1

• Microsoft Dynamics AX 2012

SEPA direct debits in Microsoft Dynamics AX 2009 SP1

Hotfix download instructions

Download and install the .xpo and label files

To use the SEPA direct debit payment format, you must download and install a hotfix.

Prerequisite – Make sure that you have installed Microsoft Dynamics AX 2009 SP1.

Download instructions

1. Log on to CustomerSource or PartnerSource, and then search for SEPA.

2. Locate the download page for the method of payment that supports the SEPA Direct Debit (ISO 20022 XML)

format.

3. Download the .zip file for Microsoft Dynamics AX 2009 SP1, depending on the version of Microsoft Dynamics AX

that you are using.

Installation – Click the following link, and then follow the instructions in KB article 2926525 to install the .xpo and label

files: https://mbs.microsoft.com/knowledgebase/KBDisplay.aspx?scid=kb;EN-US;2926525

Verify that the SEPA export file formats are installed

After installing the hotfix, you can verify whether the SEPA export file formats are available. The SEPA ISO20022 Direct

Debit export format is used for most countries/regions within the SEPA. Eight countries/regions have special

requirements in addition to the ISO 20022 XML standard. A separate export format is provided for each country/region

that has special requirements.

1. Start Microsoft Dynamics AX.

2. Click Accounts receivable > Setup > Payment > Methods of payment.

3. On the File formats tab, click Setup.

4. In the Fi le formats for methods of payment form, on the Export tab, in the Available list, scroll down to view the

SEPA export formats.

https://mbs.microsoft.com/knowledgebase/KBDisplay.aspx?scid=kb;EN-US;2926525

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5. Select the SEPA ISO20022 Direct Debit file format, and then click the < button.

Setup Before you can create SEPA export files, you must set up the methods of payment, company, and bank account

information in Microsoft Dynamics AX.

Set up SEPA countries/regions as members of the European economic area

SEPA direct debit payments can be used only in the countries/regions that are members of the EEA. For each

country/region that is part of the EEA, you must select the European economic area check box in the Country/region

form.

1. Click Basic > Setup > Addresses > Country/region.

2. On the Overview tab, press Ctrl+N to create a line to specify the country/region, country/region type, address

format, and the ISO type for a country. For example, create a line for Austria.

3. On the General tab, select the European economic area check box.

4. Repeat steps 2 and 3 for the other countries/regions in the European Union.

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Set up a method of payment for SEPA direct debits

Use the Methods of payment form to set up a method of payment to use for SEPA direct debit for your customers.


2. On the Overview tab, press CTRL+N to create a new line. In the Method of payment field, enter an appropriate

identifier, such as SEPA direct debit.

3. Enter other information as needed for the method of payment.

4. On the File formats tab, in the Export format field, select SEPA ISO20022 Direct Debit. If the country/region where

your bank is located has special requirements, select the export format for your country/region.

Note – If the list is empty, click Setup, select one of the formats in the Available list, and then click the < button to

add the format to the Selected list.

5. Repeat steps 2 through 4 for additional banks, if necessary.

For example, you do business with customers in all EU countries, and you have one bank account in Germany and

another in Finland. You will receive payment from some customers from the account in Germany and others from the

account in Finland. In this case, you must set up two methods of payment: one that uses the SEPA ISO20022 Direct

Debit DE export format and another that uses the SEPA ISO20022 Direct Debit FI export format.

Set up company information

Use the Company information form to set up company information for SEPA payments.

1. Click Basic > Setup > Company information.

2. On the General tab, enter the company name, and the address information, including the street name, ZIP/postal

code, and country/region.

3. For Belgium only: On the Contact information tab, in the Enterprise number field, enter the unique identification

code for the company.

4. For Spain only: On the Contact information tab, in the Tax exempt number field, enter the tax exempt number for

the company.

5. For Italy only: On the Contact information tab, in the CUC field, specify the CBI Proprietary Unique Code (CUC) that

is assigned to the company.

Set up company bank accounts for SEPA direct debits

You must provide IBANs and SWIFT codes (BIC) for SEPA payments for both the customer bank account and the bank

account for the organization that is requesting the transfer. Use the Bank Account Details form to enter the bank

account information for your company.

1. Click Bank > Common Forms > Bank Account Details.

2. On the Overview tab, create or select a bank account that you will use for SEPA direct debits.

3. On the General tab, in the SWIFT code field, enter the bank identification number.

4. In the IBAN field, enter the international bank account number.

5. For bank accounts in Austria, Germany and The Netherlands only: In the Company ID field, enter the company

identifier that you received from the bank.

6. For Spain only: On the Setup tab, in the Payment management field group, in the Suffix field, enter the suffix of the

bank.

7. On the Address tab, enter the address information, including the street name, ZIP/postal code, and country/region.

It is important that you specify the country/region where the bank is located.

8. Repeat steps 2 through 6 for all bank accounts that you will use for SEPA direct debits.

Set up customers and customer bank accounts for SEPA direct debits

You must provide IBANs and SWIFT codes (BIC) for a customer bank account that is used for SEPA direct debits. SEPA

direct debit amounts must be in euros. Use the Customers form to enter the bank account information and currency

information for your customers.

1. Click Accounts receivable > Common Forms > Customer Details.

2. In the Customers form, on the Overview tab, create or select a customer.

3. In the Currency field, verify that the currency code for the customer is EUR.

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4. Click Setup > Bank accounts.

5. In the Customer bank accounts form, on the Overview tab, enter a bank account number.

6. On the General tab, in the SWIFT code field, enter the bank identification number.


8. On the Address tab, enter the address information, including the street name, ZIP/postal code, and country/region.


9. Close the Customer bank accounts form.

10. In the Customers form, click the Payment tab.

11. Optional: In the Method of payment field, select a method of payment that uses one of the SEPA ISO20022 Direct

Debit export formats. This method of payment is used as the default method when you create transactions for the

customer.

12. In the Bank account field, select the customer bank account.

13. Repeat steps 2 through 12 for all customers that you will receive SEPA direct debits from.

Belgium only: Set up Isabel electronic banking parameters

If you are using Microsoft Dynamics AX 2009 SP1, and you are using Isabel electronic banking software, you can specify

the upload location for Isabel electronic banking files. When you create SEPA payments by using the SEPA ISO20022

Direct Debit BE export format, you will save the export file to this location.

1. Click Bank > Setup > IBS parameters.

2. On the ISABEL tab, in the Upload folder field, browse to the location where you will save exported payments, and

then click OK.

3. In the Upload mode field, select Attended mode to activate the upload integration mode for the Isabel electronic

banking software.

4. If necessary, set up additional parameters. For more information, search for “(BEL) Set up the integration with Isabel

electronic banking software” in the Applications and Business Processes Help.

Transactions You use the SEPA direct debit payment formats in the same way that you use any other payment format in Microsoft

Dynamics AX. To create and post a free text invoice for direct debit payments, go to 1. Enter a free text invoice for a

customer that has a direct debit mandate. The following procedure describes how to generate payments using the

SEPA payment format.

Create and export payments using a SEPA payment format

Use the Payment journal form to create and export customer payments.

1. Click Accounts receivable > Journals > Payments > Payment journal.

2. Create or select a journal, and then click Lines to open the Journal voucher form for payment journal lines.

3. Click Payment proposal > Create payment proposal.

4. In the Customer payment proposal form, click Select.

5. In the CustPaymProposal form, specify the criteria for retrieving payments for the SEPA direct debit. For example,

for the Method of payment field, in the Criteria field, enter a method of payment that uses one of the SEPA

ISO20022 Direct Debit export file formats, and then click OK.

6. In the Customer payment proposal form, click OK.

7. In the Customer payment proposal form that appears as a result, click Transfer.

8. In the Transfer payment proposal to journal form, click OK.

9. In the Journal voucher form, on the Overview tab, select a line.

10. For Belgium only: On the Payment tab, in the Payment ID field, enter the payment identification number, and in the

Central Bank Purpose Code field, enter the Central Bank Purpose code that is used when reporting to the Central

bank.

11. Click Functions > Generate payments.

12. In the Method of payment field, select a method of payment that uses one of the SEPA ISO20022 Direct Debit

export file formats, and then in the Bank account field, select the bank account that the payment is drawn from.

13. Select the Export format option, and then in the Export format field, select the appropriate export format to use.

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14. Click Dialog. In the SEPA Direct Debit form, enter information for the export file. The following table provides

information about each field.

Field Description

Remittance information Select the format for remittance information, depending on the requirements of your

country/region or bank:

• Structured – Select this option if one payment line is settled with one invoice. This

option is not available for the country/region-specific export formats for France,

Germany, or The Netherlands.

• Unstructured – Select this option if payment is settled with multiple invoices. The

invoice numbers for the settled invoices are concatenated and used as the

remittance information. In compliance with SEPA guidelines, unstructured

remittance information is limited to 140 characters.

Batch booking Select this check box if you want to change the value of the batch booking tag in the

XML file.

Issuer Select the issuer of the credit reference.

Processing date Enter the date when the bank should process the payments.

Fi le name Enter or select the file name for the SEPA XML file. Use the file extension .xml.

Covering letter from

quantity of invoices

Enter the value of the quantity of invoices, from which a covering letter report is

printed.

Control report Select this check box to print a report that contains the payment information. You can

specify report options by clicking the Control report button.

Attending note Select this check box to print the Attending note report. You can specify report options

by clicking the Attending note button.

Payment advice Select this check box to print the Payment advice report. You can specify report options

by clicking the Payment advice button.

15. Click OK.

16. In the Generate payments form, click OK to create the payment file.

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SEPA direct debits in Microsoft Dynamics AX 2012

Hotfix download instruction

Download and install the .xpo and label files

To use the SEPA direct debit payment format, you must download and install a hotfix.

Prerequisite – Make sure that you have installed Microsoft Dynamics AX 2012.

Download instructions

1. Log on to CustomerSource or PartnerSource, and then search for SEPA.

2. Locate the download page for the method of payment that supports the SEPA Direct Debit (ISO 20022 XML)

format.

3. Download the .zip file for Microsoft Dynamics AX 2012, depending on the version of Microsoft Dynamics AX that

you are using.

Installation – Click the following link, and then follow the instructions in KB article 2926525 to install the .xpo and l abel

files: http://support.microsoft.com/kb/2926525.

Setup Before you can create SEPA export files, you must set up the legal entity and bank account information in Microsoft

Dynamics AX.

Set up legal entity information

Use the Legal entities form to set up legal entity information for SEPA payments.

1. Click Organization administration > Setup > Organization > Legal entities.

2. In the Legal entities form, select a legal entity, and on the Addresses FastTab, enter address information, including

the street name, ZIP/postal code, and country/region. For more information, go to Create or modify a legal entity.

3. For Belgium only: On the Statutory reporting FastTab, in the Enterprise number field, enter the unique identification

code of the legal entity.

4. For Italy only: On the Statutory reporting FastTab, in the CUC field, specify the CBI Proprietary Unique Code (CUC)

that is assigned to the legal entity.

Set up company bank accounts for SEPA direct debits

You must provide IBANs and SWIFT codes (BIC) to receive SEPA payments from both the customer bank account and

the bank account for the organization that is requesting the transfer. Use the Bank accounts form to enter the bank

account information for your company.

1. Click Cash and bank management > Common > Bank accounts.

2. Create or double-click a bank account that you will use for SEPA payments.

3. On the Additional identification FastTab, in the SWIFT code field, enter the bank identification number.


5. For Spain only: On the Currency management FastTab, in the Payment management field group, in the Suffix field,

enter the suffix of the bank.

6. For bank accounts in Austria, Germany and the Netherlands only: In the Company ID field, enter the company

identifier that you received from the bank.

7. On the Address FastTab, enter address information, including the street name, ZIP/postal code, and country/region.


8. Repeat steps 2 through 4 for all bank accounts that you will use for SEPA payments.

Set up customers and customer bank accounts for SEPA direct debits

You must provide IBANs and SWIFT codes (BIC) for a customer bank account that is used for SEPA payments. Also,

SEPA payments must be in euros. Use the Customers form to enter the bank account information and currency

information for your customers.

http://support.microsoft.com/kb/2926525

http://support.microsoft.com/kb/2926525

http://technet.microsoft.com/en-us/library/hh242184.aspx

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1. Click Accounts receivable > Common > Customers > All customers.

2. Create or double-click a customer that you will receive SEPA direct debit from.

3. In the Customers form, on the Sales demographics FastTab, verify that the currency code for the customer is EUR.

4. On the Action Pane, in the Set up group, click Bank accounts.

5. In the Customer bank accounts form, select a bank account, or enter a new bank account.

6. On the General FastTab, in the SWIFT code field, enter the bank identification number.


8. On the Address FastTab, enter the address information, including the street name, ZIP/postal code, and

country/region. It is important that you specify the country/region where the bank is located.

9. Close the Customer bank accounts form.

10. In the Customers form, click the Payment FastTab.

11. Optional: In the Method of payment field, select a method of payment that can be used to group customers that

use SEPA direct debits. This method of payment is used as the default method when you create transactions for the

customer.

12. In the Bank account field, select the customer bank account.

13. Repeat steps 2 through 12 for all customers that you will receive SEPA direct debits from.

Belgium only: Set up Isabel electronic banking parameters

If you are using Microsoft Dynamics AX 2012, and you are using Isabel electronic banking software, you can specify the

upload location for Isabel electronic banking files. When you create SEPA payments by using the SEPADirectDebit

payment format with a country code of BE, you will save the export file to this location.

1. Click Cash and bank management > Setup > IBS parameters.

2. On the ISABEL tab, in the Upload folder field, browse to the location where you will save exported payments, and

then click OK.

3. In the Upload mode field, select Attended mode to activate the upload integration mode for the Isabel electronic

banking software.

4. If necessary, set up additional parameters. For more information, see the following topic on TechNet:

http://technet.microsoft.com/en-us/library/gg232175.aspx.

Set up an outbound integration port for payments

To use the SEPADirectDebit payment format, you must set up an outbound integration port by using Application

Integration Framework (AIF). This task involves the following steps:

1. Export the XML style sheet for SEPA from the Application Object Tree (AOT).

2. Set up the batch job to generate XML payment files.

3. Set up outbound ports for electronic payments.

4. Optional: Add outbound transforms to your outbound port.

For detailed instructions for each of these steps, refer to the “Walkthrough: Configuring an outbound integration port

for payments” topic on TechNet: http://technet.microsoft.com/en-us/library/hh446522.aspx.

Transactions You use the SEPA direct debit payment service format differently than how you use other payment formats in Microsoft

Dynamics AX. To create and post free text invoices, go to 1. Enter a free text invoice for a customer that has a direct

debit mandate. The following procedures describe how to generate payments using the SEPA payment format.

Create and export payments using a SEPA payment format

Use the Payment journal form to create and export customer payments.


2. Create or select a journal, and then click Lines to open the Journal voucher form for payment journal lines.



http://technet.microsoft.com/en-us/library/gg232175.aspx


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5. In the CustPaymProposal form, specify the criteria for retrieving payments for the SEPA direct debit. For example,

for the Method of payment field, in the Criteria field, enter a method of payment that is used to group customers

that use the SEPA Direct Debit format, and then click OK.

6. In the Customer payment proposal form, click OK.

7. In the Customer payment proposal form that appears as a result, click Transfer.

8. In the Transfer payment proposal to journal form, click OK.

9. In the Journal voucher form, on the Overview tab, select a line.

10. For Belgium only: On the Payment tab, enter information in the Payment ID field, enter the payment identification

number, and in the Central bank purpose code field, select the Central bank purpose code that is used when

reporting to the Central bank.


12. Optional: In the Method of payment field, select a method of payment that is used to group customers that use the

SEPA Direct Debit format.

13. Optional: In the Bank account field, select the bank account that the payment is drawn from.

14. Select the Export payment using service option, and then in the Payment format field, select the appropriate

payment format.

15. Click Dialog. In the Payment processing data form, enter information for the export file. The following table provides

information about each field.

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Field Description

Name The name of the payment processing data. The following options are available:

Processing date – Enter the date when the bank should process the payments.

Format – Select the format for remittance information, depending on the requirements

of your country/region or bank:

• Structured – Select this option if one payment line is settled with one invoice. This

option is not available for the country/region-specific export formats for France,

Germany, or the Netherlands.

• Unstructured – Select this option if the payment is settled with multiple invoices. The

invoice numbers for the settled invoices are concatenated and used as the

remittance information. In compliance with SEPA guidelines, unstructured

remittance information is limited to 140 characters.

Country – Enter the country/region code for the country/region-specific version of the

direct debit file to generate. Leave this field blank to use the generic direct debit file

format.

Issuer – Select the issuer of the credit reference.

Variant – Enter 002 - DK Version 2.6 or 003 - DK Version 2.7 as the message variant.

The variant 003 – DK Version 207 is used for Germany.

Batch booking – Enter true or false for the definition of the batch booking tag in the

XML file. This parameter is not mandatory and the default value is false.

Value Enter the value of the payment preprocessing data.

Note – You can enter the values based on the information that is available in the

Description field.

Description The description of the payment preprocessing data.

Payment format The name of the payment format for the payment preprocessing data.

Fi le name) Enter the file name for the SEPA XML file. Use the file extension .xml. The file name is

also displayed on the Attending note report. If the file name is not entered, it is

automatically created.

Covering letter from

quantity of invoices

Enter the value of the quantity of invoices from which the covering letter report is

printed.

Control report Select this check box to print a report that contains the payment information. You can

specify report options by clicking the Control report button.

Attending note Select this check box to print the Attending note report.

Payment advice Select this check box to print the Payment advice report.

16. Click OK.

17. In the Generate payments form, click OK to create the payment file.

Country/region-specific information

The section provides information about the country/region-specific formats. This section has been updated to include

information about features that were added or changed for Microsoft Dynamics AX 2009 SP1 with the hotfix in

2926525 and in AX 2012 with the hotfix in 2926525.

For Microsoft Dynamics 2012, the SEPADirectDebit service lets you select a country/region when you generate

payments. However, for Microsoft Dynamics AX 2009 SP1, you must select the export format when you generate

payments.

Use the following table to learn about which export formats work with which countries for Microsoft Dynamics AX 2009

SP1, and to learn additional information about each export format. The functionality that is described in the “Additional

information about the export format” column is available in all two versions of Microsoft Dynamics AX unless otherwise

stated.



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Country/region Export format Additional information about the export

format

Austria SEPA ISO20022 Direct Debit AT No additional information is required.

Belgium SEPA ISO20022 Direct Debit BE Structured remittance information is based

on the Invoice field for the settled invoice.

The first 10 numeric characters are used,

plus a check sum that is based on MODULO

97.

For example, if the invoice is

A1234B567C89012, the first 10 numeric

characters are 1234567890.

ROUND(1234567890/97) = 12727504

12727504 * 97 = 1234567888

1234567890 – 1234567888 = 02

Structured message: 1234567890 + 02 =

123456789002

France SEPA ISO20022 Direct Debit FR Only unstructured remittance information is

supported.

Germany SEPA ISO20022 Direct Debit DE Only unstructured remittance information is

supported.

Italy SEPA ISO20022 Direct Debit IT No additional information is required.

Spain SEPA ISO20022 Direct Debit ES No additional information is required.

The Netherlands SEPA ISO20022 Direct Debit NL Only unstructured remittance information is

supported.

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FAQ – Frequently asked questions

Will I have to install software updates to Microsoft Dynamics AX to comply with SEPA Direct Debit

requirements?

Microsoft Dynamics AX 2012 can generate the SEPA Direct Debit file format. However, if you are required to check

SEPA mandates, you will have to install a software update. You will also have to install a software update if you are

using Microsoft Dynamics AX 2009 SP1. More information will be published on PartnerSource when the software

updates are released.

When will Microsoft deliver software updates for compliance with SEPA Direct Debit requirements?

Microsoft plans to provide country specific format support. The roadmap for delivery of the format updates will be

posted on PartnerSource.

For which versions will software updates be released to support SEPA Direct Debits?

Software updates will be released for supported versions, specifically Microsoft Dynamics AX 2009 SP1. Microsoft

Dynamics AX 2012 can already generate the SEPA Direct Debit file format. However, if you are required to check SEPA

mandates, you will have to install a software update.

Why will software updates not be released for other versions?

Software updates are released only for supported versions, in accordance with the Microsoft support life cycle policies.

How will I know when software updates are available for Microsoft Dynamics AX?

Software updates will be published on PartnerSource and CustomerSource for download.

My country/region or bank has a specific format that is different from the format supplied in Microsoft

Dynamics AX. How can I modify this?

For Microsoft Dynamics AX 2009 SP1, the process is the same as the process for modifying existing payment file

formats – you will have to customize the code. For Microsoft Dynamics AX 2012, you will be able to modify the .xslt file

to change it to your specific format.

What can I do to prepare for SEPA Direct Debits?

To prepare for the implementation of SEPA Direct Debits, make sure that IBANs and BICs are recorded for all your

customers in Microsoft Dynamics AX.

What are International Bank Account Numbers (IBAN) and Bank Identifier Codes (BIC)?

The International Bank Account Number (IBAN) and Bank Identifier Code (BIC) are used to identify any account in the

32 SEPA countries/regions.

Depending on the version that you are using, you can enter the IBAN and BIC codes in the following way:

• In Microsoft Dynamics AX 2012, enter the BIC in the SWIFT code field and the IBAN in the IBAN field. Both fields are

located on the Additional identification FastTab on the Bank account tab in the Bank accounts form. This is true for

both the creditor’s bank account and the customer’s bank account.

• In AX 2009 SP1, enter the BIC in the SWIFT code field and the IBAN in the IBAN field. Both fields are located on the

General tab in the Bank accounts form.

Where do I enter creditor identifiers (Direct debit IDs)?

In the SEPA, each creditor is identified by a unique creditor identifier. This identifier lets the customer and the customer

bank filter each direct debit, and then process or reject the direct debit according to customer instructions. Creditors

must request this identifier through their bank.

Depending on the version you are using, you can enter credit identifiers in the following way:

• In Microsoft Dynamics AX 2012, enter this identifier in the Direct debit ID field on the Additional identification

FastTab in the Bank accounts form for the legal entity.

• In AX 2009 SP1, enter the credit identifier in the Direct debit ID field on the Setup tab in the Bank accounts form for

the company.

Where do I specify the SEPA Direct Debit file format (ISO 20022)?

The SEPA data formats are based on the ISO 20022 message standards. In Microsoft Dynamics AX 2012, you will select

the SEPADirectDebit format as a payment service when you generate payments for a payment journal. For information

about how to configure a payment format by using a service, go to Walkthrough: Configuring and outbound


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integration port for payments. The walkthrough describes how to set up the SEPACreditTransfer payment format. To

configure an outbound port for direct debit payments, use the SEPADirectDebit payment format instead.

In what file formats can I generate SEPA direct debit payment files?

Depending on the version that you are using, you can generate electronic payment files for SEPA direct debits in the

following formats:

• In AX 2012 R3 and cumulative update 7 or later for AX 2012 R2: You can generate SEPA direct debit payment files

in the PAIN.008.001.02 XML file format for Belgium, Germany, Spain, France, Italy, and the Netherlands.

• In AX 2012 R3, AX 2012 R2 with the hotfix in KB2926525, AX 2012 with the hotfix in KB2926525, and AX 2009 SP1

with the hotfix in KB2926525: You can generate SEPA direct debit payment files in the PAIN.008.001.02 XML file

format for Austria, and in the PAIN.008.003.02 XML file format for Germany.

How do refunds and returns work with SEPA direct debits?

Under both SEPA Direct Debit schemes, customers have certain rights to refunds. The customer is allowed to recall any

authorized transactions during an eight-week period after the due date, without having to give a reason. In Microsoft

Dynamics AX 2012, reversals of any payments that have been made are accomplished manually by using the Cancel

payment button in the Customer transactions form.





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SEPA Direct Debit Mandate Overview The SEPA Direct Debit mandate allows a customer to sign a mandate that authorizes the creditor to collect a payment

and instructs the customer’s bank to pay the collection. The customer can issue the mandate in paper form or

electronically. By default, the mandate expires 36 months after the direct debit is last initiated. For examples of mandate

forms, see the Appendix.

Functionality will be added to Microsoft Dynamics AX 2012 to handle basic mandate recording. In addition, mandates

can be scanned and attached to the customer by using the document handling functionality in Microsoft Dynamics AX

2012. Microsoft Dynamics AX 2012 does not include built-in integration with bank-specific systems to import mandates

that are tracked at the bank level.

Note – In AX 2012 with the hotfix in KB2926525 and AX 2009 SP1 with the hotfix in KB2926525, you can use the COR1

scheme for SEPA Core direct debit mandates.

SEPA Direct Debit Mandates in Microsoft Dynamics AX 2009 SP1

Setup

This topic explains how to configure Single Euro Payment Area (SEPA) direct debit mandates. A SEPA direct debit allows

a creditor to collect funds from a customer’s bank account, provided that a signed mandate has been granted by the

customer to the creditor. The customer signs a mandate that authorizes the creditor to collect a payment and instructs

the customer’s bank to pay the collection.

The following illustration shows the process of setting up SEPA direct debit mandates:

1. Set up a number sequence for direct debit mandates

Each direct debit mandate must have a unique number. Use the Number sequences form to create a number sequence

for direct debit mandates.

1. Click Basic > Setup > Number sequences > Number sequences.

2. Press CTRL+N.

3. In the Number sequence code field, enter an identifier. You will use this identifier to assign the number sequence to

the direct debit mandate system in the Accounts receivable parameters form.

4. On the Overview tab, in the Format field, create segments. For example, you might use the following format: SDD-

#########

5. On the General tab, select the Manual check box or the Continuous check box to enter a manual sequence or to

generate a continuous number sequence.

6. In the Smallest field, enter the lowest possible value that can be used to automatically generate numbers for the

number sequence. This field is available only if you select the Continuous check box.

2. Set up Accounts receivable parameters for direct debit mandates

You must set up parameters for direct debit mandates. Use the Accounts receivable parameters form to set up the

parameters.

1. Click Accounts receivable > Setup > Parameters.

2. On the Direct debit tab, make the following selections:



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Field Description

Days required for the first

pre-notification

Days required for

recurring pre-

notifications

Enter the number of days to allow for pre-notifications when a new mandate is added.


core scheme bank

submission

Days required for

recurring core scheme

bank submissions

Enter the number of days to allow for bank submissions that use the core scheme.


B2B bank submission

Days required for

recurring B2B bank

submission

Enter the number of days to allow for bank submissions that use the business-to-

business (B2B) scheme.


COR1 bank submission

Days required for

recurring COR1 bank

submission

These controls are

available only when AX

2009 SP1 with the hotfix

in KB2926525 is installed.

Enter the number of days to allow for bank submissions that use the COR1 mandate

scheme.

Months between usage

and expiration

The default entry is 36 months (three years).

3. On the Number sequences tab, select a number sequence code for the Direct debit mandate ID reference.

3. Set up a method of payment for direct debit mandates

You must set up a method of payment for direct debit mandates. You will use this method of payment to query on

invoices to generate direct debit payments for. Use the Methods of payment form to set up the method of payment.


2. Press CTRL+N.

3. Enter a name for the method of payment, such as SEPA direct debit.

4. Optional: If you expect each of your customers to have multiple mandates, in the Period field, select Invoice. This

will create separate a separate payment for each invoice, and each payment will use the mandate that is specified

for the invoice.

5. On the General tab, select the Require mandate check box to create payment for direct debit mandates.


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Transactions

The topics in this section explain how to maintain direct debit mandate information and generate a payment for

customers.

Add direct debit mandate information to a customer record (AX 2009 SP1)

Before you can draw Single Euro Payment Area (SEPA) direct debit payments for customers with a mandate, you must

enter information about the mandate. This topic explains how to add information about a direct debit mandate to a

customer’s record, and how to print, scan, or cancel a mandate if necessary.

The following illustration shows the process of adding direct debit mandate information to a customer:

1. Add direct debit mandate information to a customer record

Before you can draw direct debit payments for customers with a mandate, you must enter information about the

mandate. Usually, only one mandate is in effect at a time for a customer, so a message is displayed if you try to enter a

second mandate for the same customer.


2. Select a customer, and then click Setup > Direct debit mandate.

3. In the Direct debit mandate form, press CTRL+N.

4. Enter information about the mandate. Make the following selections:

Field Description

Mandate ID The identifier is automatically assigned.

Bank account Select the customer’s bank account. The IBAN and SWIFT code fields must be filled in

for the bank account if it is used for direct debits.

Signature date Select the date that the mandate was signed.

Mandate scheme

Select the type of mandate scheme. Select from the following options:

• Core – The basic direct debit scheme, which can be used for businesses or

consumers.

• B2B – The business-to-business, which can be used only for businesses.

• COR1 – The COR1 direct debit mandate scheme, which can be used for businesses

or consumers.

The COR1 control is available only AX 2009 SP1 with the hotfix in KB2926525 is

installed.

Payment frequency Select how payments are made. Select from the following options.

• Recurring – Mandates include multiple payments, such as installment plans or

service agreements. Enter the number of payments in the Expected number of

payments field.

• One-time – Mandates include only one payment.

Mandate status The mandate status is Incomplete until you enter all the required fields. The status then

changes to New.


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5. Optional: On the General tab, change the default entries for the following fields, if necessary, and then close the

form.

Field Description


pre-notification

Days required for

recurring pre-

notifications

Enter the number of days to allow for pre-notifications.


bank submission

Days required for

recurring bank

submissions

Enter the number of days to allow for bank submissions.

Signature location Enter the location where the mandate was signed.

Expected number of

payments

For recurring payments, enter the expected number of payments. For one-time

payments, enter 1.

Usage count For new mandates, this number is zero (0). The count is automatically updated each

time that a payment for an invoice is posted.

If a payment is settled with two invoices, the usage count is increased by two, even

though only one payment is used. If a payment is settled with an invoice in another

legal entity, the usage count is updated in the legal entity of the invoice.

6. Close the Direct debit mandate form.

7. In the Customers form, on the Payment tab, in the Default mandate ID field, select the default mandate to use for

transactions. These transactions include customer invoices for sales orders, free text invoices, interest notes,

collection letters, project invoices, and journal entries. Select the mandate reference that will be used for these

transactions most of the time. If necessary, you can use the Customer transactions form to change the mandate

reference for a transaction after it has been posted.

2. Optional: Generate a mandate for the customer to sign and return

If your business process requires it, you can print a partially completed mandate form for your customer to fill out, sign,

and return to you.



3. In the Direct debit mandate form, select a mandate, and then click Print > Mandate report.

3. Optional: Attach a scanned mandate to the customer record

If your customer has submitted a signed paper mandate form, you can scan it and attach it to the mandate for the

customer’s record. For more information about how to scan and attach documents, see Using document management.



3. In the Direct debit mandate form, select a mandate, and then click Document handling.

4. Optional: Cancel a mandate

If a mandate is no longer needed, you can cancel it if it isn’t assigned to an open invoice.



3. In the Direct debit mandate form, select a mandate, and then click More options > Cancel mandate.

http://technet.microsoft.com/EN-US/library/aa549988.aspx

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Enter an invoice or transaction for a customer that has a direct debit mandate (AX 2009 SP1)

When you enter a customer invoice for a sales order or a free text invoice for a customer who has more than one direct

debit mandate, you can select which mandate to use. When you print the invoice, a SEPA direct debit notification

section is printed at the bottom of the invoice.

When you enter or generate interest notes, collection letters, project invoices, or journal entries, the default mandate

reference that is specified for the customer is used. If necessary, you can use the Customer transactions form to change

the mandate reference for a transaction after it has been posted.

This topic explains how to create a free text invoice for a customer who has a direct debit mandate. The process is

similar for customer invoices for sales orders.

1. Enter a free text invoice for a customer that has a direct debit mandate

Use the Free Text Invoice Details form to enter a free text invoice for a customer.

1. Click Accounts receivable > Common Forms > Free Text Invoice Details.

2. Press CTRL+N.

3. Select a customer that has a direct debit mandate, and enter invoice header and line information. For basic

information about how to work with free text invoices, see Key tasks: Free text invoices.

4. On the Payment tab, select a method of payment that has the Require mandate check box selected.

5. In the Direct debit mandate ID field, select a mandate reference.

6. Click Posting > Free text invoice.

7. In the Post free text invoice form, select the Print invoice check box, and then click OK.

The invoice is posted and printed. The SEPA direct debit notification section is printed at the bottom of the invoice.

2. Optional: Print a direct debit mandate notification report

You can print a report that shows all the invoices that have been posted for a mandate, and that have not yet been

paid. You can send this report to your customer to let them know which invoices are scheduled to be paid through the

mandate.


2. Select a customer, and then click Setup > Direct debit mandates.

3. In the Direct debit mandate form, select a mandate, and then click Print > Notification report.

Create payments for customers that have direct debit mandates (AX 2009 SP1)

You can create SEPA direct debit payments for customers that have invoices that use a method of payment that

requires a mandate. This topic explains how to create a payment proposal for customers that have direct debit

mandates. It also explains how you can verify mandate information after the payment is posted.

1. Create a payment proposal for customers that have direct debit mandates

Use the Payment journal form to create a payment proposal for customers.

1. Click Accounts receivable > Journals > Payment > Payment journal.

2. Select a journal name, and then click Lines.



5. In the query form, select the Method of payment field.

6. In the Criteria field, select a method of payment that requires a mandate, and then click OK.

To add restrictions to select documents by mandate scheme or payment frequency, right-click on the Customer

transactions table and add the Customer direct debit mandates table. Then, enter criteria and then click OK.

7. Enter other information for the payment proposal, as needed, and then click OK.

8. Click Transfer.


10. In the Generate payments, select a method of payment that requires a mandate, and then click OK.

Payments are generated, and the payment status changes to Sent.

11. In the Journal voucher form, click Post > Post.

Payments are posted. The usage count for each customer’s mandate is incremented. If a payment is settled with

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two invoices, the usage count is increased by two, even though only one payment is used. If a payment is settled

with an invoice in another legal entity, the usage count is updated in the legal entity of the invoice.

2. Optional: Verify mandate information for customer transactions

Use the Customer Details form to verify mandate information for customer transactions.



3. In the Direct debit mandate form, and select a mandate.

4. On the General tab, note the usage count at the bottom of the form.

5. To view the remaining invoices for the selected mandate, click Print > Notification report.

6. In the Direct debit mandate form, click OK.

7. In the Customers form, click Transactions.

SEPA Direct Debit Mandates in Microsoft Dynamics AX 2012

Setup

This topic explains how to configure Single Euro Payment Area (SEPA) direct debit mandates. A SEPA direct debit allows

a creditor to collect funds from a customer’s bank account, provided that a signed mandate has been granted by the

customer to the creditor. The customer signs a mandate that authorizes the creditor to collect a payment and instructs

the customer’s bank to pay the collection.

The following illustration shows the process of setting up SEPA direct debit mandates:

1. Set up a number sequence for direct debit mandates

Each direct debit mandate must have a unique number. Use the Number sequences form to create a number sequence

for direct debit mandates.

1. Click Organization administration > Common > Number sequences > Number sequences.

2. On the Action Pane, click Number sequence.

3. In the Number sequence code field, enter an identifier. You will use this identifier to assign the number sequence to

the direct debit mandate system in the Accounts receivable parameters form.

4. On the Segments FastTab, create segments. For example, you might use the following format: SDD-#########

5. On the General tab, select the Manual check box or the Continuous check box to enter a manual sequence or to

generate a continuous number sequence.

6. In the Smallest field, enter the lowest possible value that can be used to automatically generate numbers for the

number sequence. This field is available only if you select the Continuous check box.

2. Set up Accounts receivable parameters for direct debit mandates

You must set up parameters for direct debit mandates. Use the Accounts receivable parameters form to set up the

parameters.

1. Click Accounts receivable > Setup> Accounts receivable parameters.

2. In the Direct debit area, make the following selections:

Field Description

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Field Description


pre-notification

Days required for

recurring pre-

notifications

Enter the number of days to allow for pre-notifications when a new mandate is added.


core scheme bank

submission

Days required for

recurring core scheme

bank submissions

Enter the number of days to allow for bank submissions that use the core scheme.


B2B bank submission

Days required for

recurring B2B bank

submission

Enter the number of days to allow for bank submissions that use the business-to-

business (B2B) scheme.


COR1 bank submission

Days required for

recurring COR1 bank

submission

These controls are

available only when

Microsoft Dynamics AX

2012 R3, AX 2012 R2 with

the hotfix in KB2926525,

and AX 2012 with the

hotfix in KB2926525 is

installed.

Enter the number of days to allow for bank submissions that use the COR1 mandate

scheme.

Months between usage

and expiration

The default entry is 36 months (three years).

3. On the Number sequences area, select a number sequence code for the Direct debit mandate ID reference.

3. Set up a method of payment for direct debit mandates

You must set up a method of payment for direct debit mandates. You will use this method of payment to query on

invoices to generate direct debit payments for. Use the Methods of payment form to set up the method of payment.


2. Enter a name for the method of payment, such as SEPA direct debit.

3. Optional: If you expect each of your customers to have multiple mandates, in the Period field, select Invoice. This

will create separate a separate payment for each invoice, and each payment will use the mandate that is specified

for the invoice.

4. In the Payment type field, select Electronic payment.

5. Select the Require mandate check box to create payment for direct debit mandates.

Note – The Require mandate check box is available only if you select Electronic payment in the Payment type field.



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Transactions

The topics in this section explain how to maintain direct debit mandate information and generate a payment for

customers.

Add direct debit mandate information to a customer record (AX 2012)

Before you can draw Single Euro Payment Area (SEPA) direct debit payments for customers with a mandate, you must

enter information about the mandate. This topic explains how to add information about a direct debit mandate to a

customer’s record, and how to print, scan, or cancel a mandate if necessary.

The following illustration shows the process of adding direct debit mandate information to a customer:

1. Add direct debit mandate information to a customer record

Before you can draw direct debit payments for customers with a mandate, you must enter information about the

mandate. Usually, only one mandate is in effect at a time for a customer, so a message is displayed if you try to enter a

second mandate for the same customer.


2. Double-click a customer.

3. On the Direct debit mandate FastTab, click Add.

4. Enter information about the mandate. Make the following selections:

Field Description

Mandate ID The identifier is automatically assigned.

Bank account Select the customer’s bank account. The IBAN and SWIFT code fields must be filled in

for the bank account if it is used for direct debits.

Signature date Select the date that the mandate was signed.

Mandate scheme

Select the type of mandate scheme. Select from the following options:

• Core – The basic direct debit scheme, which can be used for businesses or

consumers.

• B2B – The business-to-business, which can be used only for businesses.

• COR1 – The COR1 direct debit mandate scheme, which can be used for businesses

or consumers.

The COR1 control is available only if Microsoft Dynamics AX 2012 R3, AX 2012 R2 with

the hotfix in KB2926525, and AX 2012 with the hotfix in KB2926525 is installed.

Payment frequency Select how payments are made. Select from the following options.

• Recurring – Mandates include multiple payments, such as installment plans or

service agreements. Enter the number of payments in the Expected number of

payments field.

• One-time – Mandates include only one payment.

Mandate status The mandate status is Incomplete until you enter all the required fields. The status then

changes to New.



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5. Optional: Change the default entries for the following fields, if necessary.

Field Description


pre-notification

Days required for

recurring pre-

notifications

Enter the number of days to allow for pre-notifications.


bank submission

Days required for

recurring bank

submissions

Enter the number of days to allow for bank submissions.

Signature location Enter the location where the mandate was signed.

Expected number of

payments

For recurring payments, enter the expected number of payments. For one-time

payments, enter 1.

Usage count For new mandates, this number is zero (0). The count is automatically updated each

time that a payment for an invoice is posted.

If a payment is settled with two invoices, the usage count is increased by two, even

though only one payment is used. If a payment is settled with an invoice in another


6. In the Default mandate ID field, select the default mandate to use for transactions. These transactions include

customer invoices for sales orders, free text invoices, interest notes, collection letters, project invoices, and journal

entries. Select the mandate reference that will be used for these transactions most of the time. If necessary, you can

use the Customer transactions form to change the mandate reference for a transaction after it has been posted.

2. Optional: Generate a mandate for the customer to sign and return

If your business process requires it, you can print a partially completed mandate form for your customer to fill out, sign,

and return to you.



3. On the Direct debit mandate FastTab, select a mandate, and then click Print > Mandate report.

3. Optional: Attach a scanned mandate to the customer record

If your customer has submitted a signed paper mandate form, you can scan it and attach it to the mandate for the

customer’s record. For more information about how to scan and attach documents, see Using document management.



3. On the Direct debit mandate FastTab, select a mandate, and then click Attachments.

4. Optional: Cancel a mandate

If a mandate is no longer needed, you can cancel it if it isn’t assigned to an open invoice.



3. On the Direct debit mandate FastTab, select a mandate, and then click Cancel mandate.

http://technet.microsoft.com/EN-US/library/aa549988.aspx

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Enter an invoice or transaction for a customer that has a direct debit mandate (AX 2012)

When you enter a customer invoice for a sales order or a free text invoice for a customer who has more than one direct

debit mandate, you can select which mandate to use. When you print the invoice, a SEPA direct debit notification

section is printed at the bottom of the invoice.

When you enter or generate interest notes, collection letters, project invoices, or journal entries, the default mandate

reference that is specified for the customer is used. If necessary, you can use the Customer transactions form to change

the mandate reference for a transaction after it has been posted.

This topic explains how to create a free text invoice for a customer who has a direct debit mandate. The process is

similar for customer invoices for sales orders.

1. Enter a free text invoice for a customer that has a direct debit mandate

Use the Free Text Invoice Details form to enter a free text invoice for a customer.

1. Click Accounts receivable > Common > Free text invoices > All free text invoices.

2. On the Action Pane, click Free text invoice.

3. Select a customer that has a direct debit mandate, and enter invoice header and line information. For basic

information about how to work with free text invoices, see Key tasks: Free text invoices.

4. Select a method of payment that has the Require mandate check box selected.

5. In the Direct debit mandate ID field, select a mandate reference.

6. On the Action Pane, click Post.

7. In the Post free text invoice form, select the Print invoice check box, and then click OK.

The invoice is posted and printed. The SEPA direct debit notification section is printed at the bottom of the invoice.

2. Optional: Print a direct debit mandate notification report

You can print a report that shows all the invoices that have been posted for a mandate, and that have not yet been

paid. You can send this report to your customer to let them know which invoices are scheduled to be paid through the

mandate.



3. On the Direct debit mandate FastTab, select a mandate, and then click Print > Notification report.

Create payments for customers that have direct debit mandates (AX 2012)

You can create SEPA direct debit payments for customers that have invoices that use a method of payment that

requires a mandate. This topic explains how to create a payment proposal for customers that have direct debit

mandates. It also explains how you can verify mandate information after the payment is posted.

1. Create a payment proposal for customers that have direct debit mandates

Use the Payment journal form to create a payment proposal for customers.


2. Select a journal name, and then click Lines.

3. Select a journal line, and then click Payment proposal > Create payment proposal.


5. In the Customer payment proposal query form, in the Criteria field, select the criteria for the customer transactions.

6. To add restrictions to select documents by mandate scheme or payment frequency, in the upper pane, right-click

the Customer transactions table in the tree and add the Customer direct debit mandates table. Enter criteria, and

then click OK.

7. In the Customer payment proposal form, enter other information for the payment proposal as needed, and then

click OK.


9. In the Generate payments form, select Payment method, and then in the Method of payment field, select a method

of payment that requires a mandate. Payments are generated, and the payment status changes to Sent.

10. In the Journal voucher form, click Post > Post to post the payments.


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The usage count for each customer’s mandate is incremented. If a payment is settled with two invoices, the usage

count is increased by two, even though only one payment is used. If a payment is settled with an invoice in another


2. Optional: Verify mandate information for customer transactions

Use the Customer Details form to verify mandate information for customer transactions.



3. Select the Direct debit mandate FastTab and double-click a mandate.

4. Note the usage count at the bottom of the form.

5. To view the remaining invoices for the selected mandate, click Print > Mandate notification.

6. Click OK.

7. In the Customers form, click Transactions.

FAQ – Frequently asked question

Can I use the COR1 scheme for direct debit mandates?

Yes. If you are using AX 2012 with the hotfix in KB2926525 and AX 2009 SP1 with the hotfix in KB2926525, you can use

the COR1 scheme for SEPA direct debit mandates in Austria, Belgium, Germany, France, Italy, Spain, and the

Netherlands. The scheme provides a shorter pre-notification period for the direct debit collection for the creditor.



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Appendix – Mandate examples

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References • European Payments Council (EPC)

http://www.europeanpaymentscouncil.eu/

• EPC Core Direct Debit Scheme Customer-to-Bank Implementation Guidelines

http://www.europeanpaymentscouncil.eu/knowledge_bank_detail.cfm?documents_id=443

• EPC Business to Business Direct Debit Scheme Customer-to-Bank Implementation Guidelines


• Directive on Payment Services (PSD)

http://ec.europa.eu/internal_market/payments/framework/index_en.htm

• European Central Bank

http://www.ecb.int/paym/sepa/html/index.en.html

• European Commission

http://ec.europa.eu/internal_market/payments/sepa/index_en.htm

• ISO 20022 Standard

http://www.iso20022.org/

http://www.europeanpaymentscouncil.eu/



http://ec.europa.eu/internal_market/payments/framework/index_en.htm

http://www.ecb.int/paym/sepa/html/index.en.html

http://ec.europa.eu/internal_market/payments/sepa/index_en.htm

http://www.iso20022.org/

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