Using Credit Transfer
You prepare credit transfer orders based on entries, which represent a payable amount of money, and upload them to your bank. The way you create or retrieve entries depends on the integration of JustOn Cash Management with your Salesforce org, for example, with JustOn Billing & Invoice Management.
About SEPA Credit Transfer
The European Payments Council (EPC) has established the single euro payments area (SEPA) to standardize cashless euro payments across Europe. It defines, among others, the SEPA Credit Transfer scheme (SCT). It defines a set of rules, practices and standards to achieve interoperability for SEPA payment instruments between participating banks and payment service providers in 36 European countries.
As opposed to SEPA Direct Debit, SEPA Credit Transfer does not require a mandate. For details, see SEPA Credit Transfer on the EPC website.
The payout is initiated by the debtor, submitting the order to their bank. The order includes information like amount, payout date and creditor IBAN. The bank then executes the order, withdrawing the money from the debtor's account and putting it to the creditor's account.
This overview on SEPA Credit Transfer does not constitute any legally effective advice. JustOn cannot and must not provide such services. For any detailed questions and current information on implementing SEPA Credit Transfer, contact your bank.
SEPA Credit Transfer transaction workflow
This section describes the typical workflow (assuming that all entries are eligible and the business setup is complete) and the lifecycle of a SEPA Credit Transfer transaction in JustOn Cash Management.
- (1) User opens SEPA Credit Transfer dialog from entry list view
- This displays a confirmation, prompting for either continuing or aborting the process.
- (2) User starts credit transfer job
- JustOn Cash Management validates the input records (business entities, payment instruments, entries). The dialog shows the job progress.
- As a result of the job execution, JustOn Cash Management
- Creates Payment records with the status
- Creates Entry Item records with an
- Builds SEPA XML files (including a unique end-to-end ID) and sends them to the bank via EBICS
- Creates Payment records with the status
- (3) Authorized user releases orders
- The signature (under the EDS class E or A/B) must be given in the banking system.
- As a result, the bank processes all credit transfer requests and pays out the money.
- (4) User retrieves bank statements
- When a matching bank statement item is found (according to an end-to-end ID or through data comparison), it is automatically associated with the corresponding payment. Consequently, JustOn Cash Management
- Updates the amount on the payment
- Sets the payment status to
- Adjusts the amount on the entry item
Eligible Entries for SEPA Credit Transfer
For an entry to be processed successfully via SEPA Credit Transfer, make sure that the following information is set accordingly:
|Account||The associated account for the creditor|
|Type||The type of the entry, must be
|Business Entity||Lookup to the related business entity
Must match the business entity of the payment instrument.
|Credit Approval||(Optional) approval status, used to build approval processes for outgoing money transfers
|Open Amount||The overall open amount
For a credit, it must be a negative amount.
|Statement Date||The effective date of the (legally binding) original statement|
|Statement Payment Due Date||The payment due date of the statement, that is, the agreed payout date|
|Requested Payment Method||The requested payment method for the entry, must be
|Requested Payment Instrument||Optionally, allows to select a particular active payment instrument. Falls back to the first active payment instrument of the account if empty.|
|Requested Bank Account||Your (the debtor's) bank account – the source of the payout. Falls back to the
|Payment Reference||Describes the purpose of the payment, a human-readable description for the money transfer. Will be displayed in the bank account statements.|
Statement Payment Due Date is used as a reference when selecting entries for credit transfer jobs. Entries are eligible if the date is not empty and not beyond the next 14 days from today, like
Statement Payment Due Date <= TODAY + 14d.
Required Payment Instrument Information
As opposed to SEPA Direct Debit, SEPA Credit Transfer does not require a mandate. Nevertheless, you still need a payment instrument to hold the payment-relevant data for credit transfers, including:
|Business Entity||The related business entity
Must match the business entity of the entry.
|Account Holder||The name of the PI holder, used to address the creditor by name|
|Money Flow Outgoing||Must be
|IBAN||The target bank account|
|BIC||Required if the debtor's or the creditor's bank is located in non-EEA SEPA countries Andorra, Monaco, San Marino, Switzerland, United Kingdom or Vatican City State.|
|Is Active||Must be
Creating Credit Transfer Orders
Make sure that the button EBICS Credit Transfer is available on the Entry list view, see Enabling Credit Transfer.
To start the credit transfer order generation:
- Open the Entries tab.
Select the entries to be processed.
Continuing without selection includes all listed entries.
Click EBICS Credit Transfer.
This displays a summary of the entries to be processed.
Optionally, enable Cancel Issued Payments.
This will cancel all payments that have been issued previously for the involved entries to allow them for being charged again.
Use this option with extreme care. Multiple submissions may cause multiple charges in case the bank has already processed the original payment order.
This starts the SEPA order creation and upload. The page shows the job progress and log messages.
Even in case of an error, the job may still complete. To be sure of the credit transfer order generation, review the
Error Messagefield of the processed entries, or create a report to show the result.
Clicking Finish returns you to the Entries tab.