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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 Issued
  • Creates Entry Item records with an Expected Amount
  • Builds SEPA XML files (including a unique end-to-end ID) and sends them to the bank via EBICS
(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 the end-to-end ID), it is automatically associated with the corresponding payment. Consequently, JustOn Cash Management
  • Updates the amount on the payment
  • Sets the payment status to Collected
  • Adjusts the amount on the entry item

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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:

Field Description
Account The associated account for the creditor
Type The type of the entry, must be Credit
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
Must be restricted or approved. Empty values are handled like approved.
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 SEPA
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 Preferred Bank Account of the business entity if empty.
Payment Reference Describes the purpose of the payment, a human-readable description for the money transfer. Will be displayed in the bank account statements.

The field 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:

Field Description
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
Type Must be SEPA Mandate (allows for direct debits and credit transfers) or Bank Account (allows for credit transfers only)
Money Flow Outgoing Must be refund-only or unrestricted, is treated as unrestricted if empty
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 true

Creating Credit Transfer Orders

Note

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:

  1. Open the Entries tab.
  2. Select the entries to be processed.

    Continuing without selection includes all listed entries.

  3. Click EBICS Credit Transfer.

    This displays a summary of the entries to be processed.

  4. 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.

  5. Click Next.

    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 Message field of the processed entries, or create a report to show the result.

    Clicking Finish returns you to the Entries tab.