Setting up A/R Direct Debits

With direct debit, you can automatically collect payments from a customer using an electronic funds transfer (EFT) file.

After a direct debit A/R payment is posted, the DebitTransfer BOD is populated. The BOD is processed by Infor Local.ly, which then uses the data to create an EFT file for bank collection. This file is sent to the bank, informing the bank to move the funds from the customer's bank and account to your company's bank and account. Your company's bank then initiates an EFT to the customer’s bank to have the funds transferred by a bank-to-bank EFT. When you receive a bank statement from your company's bank, you must manually enter direct debit deposits on the Bank Reconciliations form.

The support for structured and unstructured fields that include reference information such as the invoice number is dependent on the bank, or in case of bank-to-bank transfer, it is dependent on both banks.

Prerequisites

You must perform these tasks outside the application before you set up direct debit in the application:

Obtain a signed mandate from the customer. The reference number on the mandate is entered into the system and included in BODs and electronic messages.
Obtain the IBAN numbers for your company and your customers.
Obtain the BIC numbers for your company and your customers, if applicable.
Obtain the Bank Authority Party IDs for your company and your customers, if applicable.

Direct Debit Setup

On the Chart of Accounts form, add any new accounts for direct debit receivables.
On the Accounts Receivable Parameters form, specify the direct debit account information.
Optionally, on the End User Types form, specify the direct debit account information.
On the Customers form, set the Payment Type to Direct Debit.
Specify the bank code for your company's account that receives direct debit payments from this customer, the customer's bank code, customer IBAN, customer's BIC or Bank Authority Party ID, and customer mandate information, as applicable. Optionally, specify the end user type.
On the Bank Reconciliations form, specify the BIC or Bank Authority Party ID and IBAN values for your company's bank, and the BIC or Bank Authority Party ID value for the customer's bank, as applicable.