ISO20022 Payment in D365FO for Norway – Part 3 (Company setup)

In this post there will be step by step setup requiring to enable a company to apply ISO20022 payment. Once you have imported ISO20022 from Microsoft repositories ISO20022 Payment in D365FO for Norway – Part 2 (Config) – DynFOTech, you need to activate provided configuration for each company in order to generate or import ISO20022 file:

• Legal entity (Organization administration > Organizations > Legal entities)
  • Name: Company name.
  • Address: The legal entity need to have a primary address with “Country/region”, “Street” and “Zip/postal code”. Country must have a value for ISO field (e.g. ISO code for Norway is “NO”.

This information will be found on Pain.001 and Camt054 files as follows:

And on “Attending note” while generating Pain.001 file:

• Contact information
  • Phone: Primary phone number.
  • Fax: Primary fax number.

Contact information will be found on cover letter excel file:

• Bank account: Company bank account.

• Giro account : Bank account number.

• Tax registration number: Use organization number for this field. If the company is tax registered, you can add “MVA” after the organization number.

• Return format error codes (Account payable > Setup > Payment setup > Return format error codes)

External status reason codes using for interpreting group status code with additional information that will show up while importing payment files. Following return error codes can be used:

Code	Name	Description
AC01	IncorrectAccountNumber	Account number is invalid or missing.
AC03	InvalidCreditorAccountNumber	Creditor account number invalid or missing
AC06	BlockedAccount	Account specified is blocked, prohibiting posting of transactions against it.
AC07	ClosedCreditorAccountNumber	Creditor account number closed
AG06	InvalidCreditorAgentCountry	Creditor agent country code is missing or invalid
AG08	InvalidAccessRights	Transaction failed due to invalid or missing user or access right
AM01	ZeroAmount	Specified message amount is equal to zero
AM03	NotAllowedCurrency	Specified message amount is an non processable currency outside of existing agreement
AM11	InvalidTransactionCurrency	Transaction currency is invalid or missing
AM14	AmountExceedsAgreedLimit	Transaction amount exceeds limits agreed between bank and client
BE04	MissingCreditorAddress	Specification of creditor’s address, which is required for payment, is missing/not correct (formerly IncorrectCreditorAddress).
BE07	MissingDebtorAddress	Specification of debtor’s address, which is required for payment, is missing/not correct.
BE11	InvalidCreditorCountry	Creditor country code is missing or invalid
BE22	MissingCreditorName	Creditor name is missing
CH03	RequestedExecutionDateOrRequestedCollectionDateTooFarInFuture	Value in Requested Execution Date or Requested Collection Date is too far in the future
CH20	DecimalPointsNotCompatibleWithCurrency	Number of decimal points not compatible with the currency
DU02	DuplicatePaymentInformationID	Payment Information Block is not unique.
DUPL	DuplicatePayment	Payment is a duplicate of another payment
NARR	Narrative	Reason is provided as narrative information in the additional reason information.
RC02	InvalidBankIdentifier	Bank identifier is invalid or missing. Generic usage if cannot specify between debit or credit account
RC03	InvalidDebtorBankIdentifier	Debtor bank identifier is invalid or missing
RC04	InvalidCreditorBankIdentifier	Creditor bank identifier is invalid or missing
RC07	InvalidCreditorBICIdentifier	Creditor BIC identifier is invalid or missing
RR01	MissingDebtorAccountOrIdentification	Specification of the debtor’s account or unique identification needed for reasons of regulatory requirements is insufficient or missing
RR02	MissingDebtorNameOrAddress	Specification of the debtor’s name and/or address needed for regulatory requirements is insufficient or missing.
RR03	MissingCreditorNameOrAddress	Specification of the creditor’s name and/or address needed for regulatory requirements is insufficient or missing.
RR04	RegulatoryReason	Regulatory Reason
RR09	InvalidStructuredCreditorReference	Structured creditor reference invalid or missing.

Example:

• Return format status mapping (Account payable > Setup > Payment setup > Return format status mapping)

External payment transaction status and group status codes existing in Pain.002, Camt.053 and Camt.053 files:

Description	Payment status	Return status
Booked	Approved	BOOK
AcceptedSettlementCompleted	Received	ACCC
AcceptedCustomerProfile	Received	ACCP
AcceptedFundsChecked	Received	ACFC
AcceptedSettlementCompletedDebitorAccount	Received	ACSC
AcceptedSettlementInProcess	Received	ACSP
AcceptedTechnicalValidation	Received	ACTC
AcceptedWithoutPosting	Received	ACWC
AcceptedWithoutPosting	Received	ACWP
PartiallyAcceptedTechnicalCorrect	Received	PATC
Pending	Received	PDNG
Received	Received	RCVD
Rejected	Rejected	RJCT

Example:

• Payment format code sets (Account payable > Setup > Payment setup > Payment format code sets)

Service level codes and local instrument needs to be defined and associates to method of payment. Some example for local instrument are as follows:

Code	Type	Name	Information
NURG	Service level	NonurgentPayment	Payment must be executed as a non-urgent transaction, which is typically identified as an ACH or low value transaction.
NUGP	Service level	NonurgentPriorityPayment	Payment must be executed as a non-urgent transaction with priority settlement.
URGP	Service level	UrgentPayment	Payment must be executed as an urgent transaction cleared through a real-time gross settlement system, which is typically identified as a wire or high value transaction.
SEPA	Service level	SingleEuroPaymentsArea	Payment must be executed following the Single Euro Payments Area scheme.
IN	Local instrument	International payment	CrossBorderCustomerCreditTransfer

• Method of payment – Vendor (Account payable > Setup > Payment setup > Method of payment)

• Payment status: Approved. Choose a payment status required for posting of payments.
  • Payment type: Electronic payment.

• Bank account: Select a bank account that is already activated for payment with the bank. Following fields should be updated:
  • Company ID: A specific value that is agreed with bank to send and receive payment file.
  • IBAN
  • SWIFT Code
  • Division: A specific identifier for division of bank account. This field can be mandatory in regards to bank requirements.
  • Address: Once this field is updated with a value, you can update division field.

• Payment specification (Account payable > Setup > Payment setup > Method of payment > Payment specification)

You need add domestic and foreign payment with local instrument and service level:

Domestics:

Foreign:

• File formats > Generic electronic Export format : Yes
• File formats > Export format configuration : ISO20022 Credit transfer (NO)
• File formats > Return format secondary configuration: Camt.054
• File formats > Return format configuration : Pain.002

Note: Payment control can be used to define mandatory fields (e.g. Payment ID is mandatory)

Note: Payment attributes can be used to define attributes for the method of payment (e.g. Third-party bank)

• Method of payment – Customer (Account receivable > Setup > Payment setup > Method of payment)

• Payment status: Received. Choose a payment status required for posting of payments.
  • Payment type: Electronic payment.

• Bank account: Select a bank account that is already activated for payment with the bank. Following fields should be updated:
  • Company ID: A specific value that is agreed with bank to send and receive payment file.
  • IBAN
  • SWIFT Code
  • Division: A specific identifier for division of bank account. This field can be mandatory in regards to bank requirements.
  • Address: Once this field is updated with a value, you can update division field.

• File formats > Generic electronic Import format : Yes
• File formats > Import format configuration : Camt.054

• Bank statement format: In order to import electronic bank statement and automatic reconciliation, you need to setup bank statement format ISO20022 (Camt.053)

Then provide this statement format for bank account that you want to activate advanced bank reconciliation:

Then, the legal entity is activated for importing and exporting ISO20022 bank files.

Useful links:

https://docs.microsoft.com/en-us/dynamics365/finance/cash-bank-management/tasks/vendor-payment-overview

https://docs.microsoft.com/en-us/dynamics365/finance/accounts-receivable/tasks/establish-customer-method-payment

https://docs.microsoft.com/en-us/dynamics365/finance/cash-bank-management/set-up-advanced-bank-reconciliation-import-process