Create payments for a customer who have direct debit mandates

This article describes how to generate an ISO20022 direct debit payment file for a customer who has direct debit configured and an invoice to be paid in Microsoft Dynamics 365 Finance.

The following procedures show how to generate an ISO20022 direct debit payment file for a customer who has direct debit configured and an invoice to be paid. Creating and posting an invoice is optional. Instead of having an invoice to be paid, you can select a mandate in a journal prior to generating a payment file to support a customer prepayment scenario.

Before completing these procedures, you must first import customer payment electronic reporting configurations, configure method of payments, and set up your company and customer information.

The following procedures use the DEMF demo company.

Post a free text invoice with direct debit information

To post a free text invoice with direct debit information, follow these steps.

1. In Dynamics 365 Finance, go to Accounts receivable > Invoices > All free text invoices.
2. Select New.
3. In the Customer account field, enter or select a value. For example, select DE-010.
4. In the Method of payment field, enter or select a value. For example. select Electronic.
5. In the Direct debit mandate ID field, enter or select a value.
6. Select Add line.
7. In the Description field, enter a value.
8. In the Main account field, enter a value.
9. In the Unit price field, enter a price.
10. Select Post.
11. Select OK.

Create a payment

To create a payment, follow these steps.

1. In Dynamics 365 Finance, go to Accounts receivable > Payments > Payment journal.
2. Select New.
3. In the Name field, enter or select a value.
4. Select Lines.
5. Select Payment proposal.
6. Select Create payment proposal.
7. Expand the Records to include section.
8. Select Filter.
9. In the list, select the row for the Customer transactions table and the Method of payment field. You can apply any criteria for selecting customer transactions to pay. For this example, use Electronic as a method of payment to filter transactions.
10. In the Criteria field, enter or select a value.
11. Select OK.
12. Select Create payments.