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Automatic Payment Collection

Accounting Support

Payment collection, as the name suggests, generally involves all processes or tools for actively collecting money from customers – instead of just waiting for them to pay.

In JustOn, specifically, payment collection refers to payment run jobs that automatically collect pre-authorized payments via integrated payment providers.

Understanding Payment Collection

Generally, you distinguish between procedures for triggering outstanding payments within the regular due terms and those for collecting overdue receivables.

Tool Description
Automatic payment collection JustOn can store credit card or bank account data and, if supported by the payment provider integration, use it to automatically collect payments for open invoices.
SEPA payment orders JustOn exports bank transfer orders – SEPA Direct Debit and SEPA Credit – for invoices or account balances, which can directly be used by banks for triggering the corresponding payment operations.
Tool Description
Account statements Account statements are reports that show the billings and payments of a given account for a specific time period. Businesses can use them to remind customers of sales that have not yet been paid, without expressly stating an overdue receivable and without starting a dunning process.
JustOn implements account statements using specific statements that summarize the account's balances.
Dunning statements Dunning statements officially notify customers of overdue payments. According to the overdue status, these notifications can progress from friendly reminders to firm warning letters.
JustOn implements dunning process support based on configurable dunning statements.
Using multiple dunning levels, you can build your individual dunning escalation scenario.
Debt collection If the dunning communication remains unfruitful, businesses may turn customers over to debt collection agencies, who usually proceed to take other collection options.
To support this option, you can specify the name of a debt collection agency when configuring your dunning levels. When set, JustOn copies the name to the invoice, where it is then available for further custom processing.
Individual value adjustment Individual value adjustment (or IVA) is an accounting procedure for devaluing receivables, for example, outstanding payment requests for invoices.
JustOn implements IVA for invoices using specific bookkeeping data.
Write-off Write-off is an accounting procedure for reducing or completely removing the value of an asset or receivable – for example, an uncollectible payment for an invoice.
JustOn supports writing off invoices using specific balances that count against the invoice balance.

Payment Collection in JustOn

JustOn can store credit card or bank account data and use it to automatically collect payments for open invoices.

Info

For credit card-based payments, the payment collection requires a payment provider integration with support for pre-authorized payment transactions.

The payment collection is available as of JustOn 2.53.

Implementation Details

The JustOn Self-Service Extension includes a payment page. It provides invoice recipients the option to pay their invoices. To this end, the JustOn Self-Service Extension integrates with payment service providers.

General payment workflow

Assume a merchant's org that integrates the JustOn Self-Service Extension with a payment service provider. The payment page is set up to provide invoice recipients (as payment guest users) the option to pay their invoices.

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General payment workflow

(1) The invoice recipient (as payment guest user) clicks Pay Now for one of the available payment providers.

  • This displays an input form that allows to enter the banking details.
  • The user clicks the pay button on the input form.

(2) Upon receiving the payment request, the payment provider validates the data.

(3) On successful validation, the payment provider captures the payment amount in the user's bank. Otherwise, the payment provider returns an error, which is displayed in the input form.

(4) The payment provider notifies JustOn about the capture result.

  • If the capture is successful, JustOn creates a Balance record for the captured amount, and displays the success message. The balance field TransactionNo is set to a provider-specific transaction number for this capture.
  • If the capture is not successful, JustOn creates a Payment Entry record that holds the provider-specific information about the failed capture, and displays an error message.

(5) On the next settlement date, the user's bank transfers the captured amount to the payment provider. Subsequently, the payment provider passes the amount to the merchant's bank.

Future Payments

Depending on the payment provider you use, the JustOn Self-Service Extension can expose the Future Payments option on the payment page. Future payments make use of provider-specific means to pre-authorize and execute recurring charges (or other subsequent payments) without the need to repeatedly prompt users for card or account numbers.

Future Payments

Payment Instruments

With the future payments feature enabled, JustOn creates an account-specific Payment Instrument record, which holds the corresponding credit card or bank account information. The payment instrument records are accessible via the corresponding related list on the account detail page.

Based on the saved payment instruments, JustOn can execute payment runs in order to automatically collect pre-authorized subsequent payments (except for invoices with the payment method Bank Transfer).

Scheduling Payment Collection

Payment Collection Workflow

In broad outline, the automatic payment collection usually works as follows:

  • A first invoice is issued to the customer.
  • The customer pays for the invoice via credit card and allows to store the card data for future use. JustOn saves the card data in an account-specific payment instrument.
  • A second invoice is issued to the customer: The customer is notified that the payment is collected automatically using the stored card data.
  • Once the payment due date has been reached, the payment run job collects the payment using the stored payment instrument, creates a corresponding balance and sets the invoice Paid.

    Invoices with the payment method Bank Transfer are excluded from the automatic payment collection.

    Postponing the payment due date for an invoice suspends applicable payment collections for the specified time.

Note

Be aware that by default, there is no option for your users to disable the automatic payment collection after they have opted to use future payments. If required or on your user's request, you deactivate individual payment instruments manually (see How to disable payment instruments?). Make sure to establish according business processes.

Be also aware that JustOn allows a maximum of three failing payment instrument-based payment requests. With the fourth failed attempt, JustOn disables the payment instrument. If the fourth attempt succeeds, however, JustOn resets the retry count, allowing for three failing payment requests again.