Using Credit Transfer

You prepare credit transfer orders based on entries, which represent a payable amount of money, and have them uploaded 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.

In addition, you can issue credit transfer orders based on approved refunds, which, on their part, are usually the result of a credit balance.

• Creating Credit Transfer Orders From Entries
• Creating Credit Transfer Orders From Refunds

Unless specifically agreed with the bank, JustOn Cash Management uses the basic character set defined by the European Payment Council when creating SEPA payment orders. For details, see SEPA Requirements for an Extended Character Set (UNICODE Subset) - Best Practices.

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 Pending
• 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 (from the original bank account and according to the 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 Collected
• Adjusts the amount on the entry item

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

To indicate the "health status", JustOn Cash Management saves the last captured amount and the corresponding timestamp to a payment instrument that holds a SEPA mandate when it is used for a credit transfer.

Creating Credit Transfer Orders From Entries

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.
Payable Amount	The amount to transfer (before a related payout is requested) Must be less than 0 for the entry to be considered on credit order creation.
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 Using the integration with JustOn Billing & Invoice Management, the value is taken from the invoice, so the invoice payment method must already be set to SEPA.
Requested Payment Instrument	Optionally, allows to select a particular active payment instrument according to the selected account. 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.

To start the credit transfer order generation from entries:

1. Open the Entries tab.

2. Filter the list view or select the entries to be processed.

   Continuing without selection includes all listed entries.

   Entries to be processed in one go must be subject to the same bank access. The relevant bank access is determined via Requested Bank Account on the entry or, if this is not set, via Preferred Bank Account on the business entity. Otherwise, the SEPA order creation and upload will fail.

3. Click Credit Transfer.

   This displays the number of entries to be processed.

   

4. Optionally, enable Cancel Pending 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.

Info

SEPA Direct Debit and SEPA Credit Transfer allow to combine multiple transactions using a Batch Booking parameter. This setting controls how the combined transactions are displayed on bank statements – usually, batched transactions appear as one bank statement item. Organizations use this option to avoid information disclosure.

Be aware that banks still process batched transactions individually. The subsequent handling does not change: each transaction results in a single payment, whether it is part of a batch or not.

JustOn Cash Management allows for enabling SEPA batch bookings for a specific bank account. If you want to use batch bookings, the relevant bank account must be configured accordingly, see Configuring SEPA Batch Booking Creation.

Creating Credit Transfer Orders From Refunds

Eligible refunds for SEPA Credit Transfer

For a refund to be processed successfully via SEPA Credit Transfer, make sure that the following information is set accordingly:

Field	Description
Payment Reference	Describes the purpose of the payment, a human-readable description for the money transfer. Will be displayed in the creditor's bank account statements.
Payment Method	Must be SEPA Credit Transfer
Status	Must be Approved
Refund Date	Must be empty or <= TODAY + 14d
Open Amount	Must be a positive value, larger than 0
Refunded Amount	Must be 0
Bank Account	Optionally, may restrict the SCT order creation to the given bank account.

Note

Make sure that the button Credit Transfer is available on the Refund list view, see Enabling Credit Transfer.

To start the credit transfer order generation from approved refunds:

1. Open the Refunds tab.
2. Select the list view Approved Refunds.

3. Select the refunds to be processed.

   Continuing without selection includes all listed refunds.

   Refunds to be processed in one go must be subject to the same bank access. The relevant bank access is determined via Bank Account on the refund or, if this is not set, via Preferred Bank Account on the business entity. Otherwise, the SEPA order creation and upload will fail.

4. Click Credit Transfer.

   This displays the number of refunds to be processed.

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 failed refunds (using the list view Failed Refunds), or create a report to show the result.

   Clicking Finish returns you to the Refunds tab.