Export SEPA Direct Debit Bank file

Hello, everyone. My name is Christos Pittis, and I am a Microsoft Dynamics NAV Consultant. In this episode, I am going to show you how to create SEPA direct debit collection Entries and export to a bank file in Microsoft Dynamics NAV 2017.

A Direct Debit Instruction is an authorization from your customer to collect future payments. The details of each authorization are standardized: All future payments are authorized so you can collect any amount at any time from your customer.

Users can create direct-debit collections so to instruct the bank to transfer payment amounts from the customer’s bank account to the company’s account. The direct debit collection holds information about the customer’s bank account, the affected sales invoices, and the direct-debit mandate. From the resulting direct-debit collection entry, users can then export an XML file to be sent or uploaded to the electronic bank for processing. Any payments that could not be processed by the bank users must then manually reject the direct debit-collection entries in question.

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Open your Microsoft Dynamics NAV 2017 windows client and go to Bank Accounts.

Setup Bank Accounts for Direct Debits

In the Bank Account Card which is going to handle this operation, enter the following information in the General fast tab:

SEPA Direct Debit Exp. Format = SEPADD

Direct Debit Msg. Nos. = SEPADD-MSG

Bank Account Card

Additionally, specify your company as a creditor in connection to SEPA.

Click OK

Setup Customers for Direct Debits

Partner type: we need to specify whether this customer is a company or person. So for direct debits, we need to make the difference between these two.

Customer Card

In this example, I set the Partner Type to Company.

Best practice is to create a Payment Method for Direct Debits because by assigning these payment methods to the customer and by creating documents for the customer, the system knows that this customer is paying through direct debits.

Payment Methods

Click OK

Click OK

Setup Direct Debit Mandates

SEPA Direct Debit Mandates

Click OK

Setup IBAN and SWIFT code in Customer Bank Accounts

Click OK

Invoice Customers periodically – Create Recurring Invoices

Related to direct debits, we can also set up recurring invoicing in Microsoft Dynamics NAV.

Setup Standard Sales Codes

Standard Sales Codes

Click OK

Click OK

Assign a Sales Standard Code to Customers

Customers List

Recurring Sales Lines

Click OK

In this way, you can combine Recurring Invoicing with Direct Debit Mandates.

Create Recurring Sales Invoices

Create Recurring Sales Invoices

Click OK

As you can see, this feature is very powerful because you can create hundreds or even thousand invoices automatically and then prepare Direct Debit collections.

Sales Invoices List

Sales Invoice

Post Sales Invoices as Batch

Batch Post Sales Invoices

*** In this example, I posted Sales Invoice 1009 only.

Create Direct Debit Collections

Direct Debit Collections

Create a Direct Debit Collection

*** Make sure the Customer and the Bank Account are in the same currency. Otherwise, the system will return no results***

Click OK

Click OK

Direct Debit Collection Entries

XML file

Here you can see the file; this is the XML file, SEPA compliant. All the information required by SEPA is now included. That is the file you want to send to the bank; the bank will issue the payment.

Post the Payment Receipt

I've sent a file to the bank, they will issue the payment, and based on what they have issued, I can then post the payment receipts.

What you will see in real life is that in some cases the issuing of the payment doesn't always succeed. For example, if the customer doesn't have enough cash, the bank will not issue the payment. So in these cases, we can reject entries to include them in the next collection and try again to issue.

Click OK

Click OK

Click OK

Close the Collection

In this example, I only have one line and is posted already. Therefore I can close the collection.

Make sure you have posted lines as payment before you close it. For the lines who didn’t make it, you can reject as we explained above.

Check the Customer Ledger Entries

Check Direct Debit Mandates

Direct Counter field updated to 1

Thanks for reading this blog post and watching my YouTube video. You can connect with me on LinkedIn https://uk.linkedin.com/in/christospittis or 365 talent portal https://www.365talentportal.com/

Christos Pittis

Microsoft Dynamics NAV/Dynamics 365 Business Central Consultant