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Support customer refunds with credit transfer format

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Important

This content is archived and is not being updated. For the latest documentation, go to What's new or changed in Dynamics 365 Finance. For the latest release plans, go to Dynamics 365, Power Platform, and Cloud for Industry release plans.

Enabled for Public preview General availability
Users, automatically - Oct 2, 2023

Business value

This feature eliminates a functional gap in customer refunds. Before, customers used a manual and time-consuming workaround. There wasn't a way to refund clients directly from the customer payments journal when it came to the ISO 20022 credit transfer format. In such cases, users are compelled to go through multiple steps to generate payment files from accounts payable transactions. This new feature generates payment files for customers in the ISO 20022 credit transfer format based on accounts payable transactions. You may use ISO 20022 credit transfer formats if you need to generate SEPA or generic ISO 20022 payments.

Feature details

With this feature, users can issue customer refunds and generate payment files with ISO 20022 credit transfer format in customer payments journals.

The ISO 20022 credit transfer is a messaging standard developed by the ISO for financial transactions and defining a format for electronic payment instructions. Messages in ISO 20022 credit transfer format are used to transfer funds from one bank account to another. The standard allows banks and financial institutions to transmit payment instructions in a consistent and structured way with a reduced number of errors and increased efficiency.

The ISO 20022 credit transfer messages can be used for both domestic and cross-border payments and can be sent using various communication channels such as SWIFT, XML, and web services. The adoption of ISO 20022 credit transfer messages is becoming increasingly widespread, and many countries and financial institutions are migrating to this standard to improve their payment processing systems.

This feature introduces ISO 20022 credit transfer format in the Customer payments journal in the following scenarios:

  • Refund or reimbursement with credit note.
  • Refund of prepayment by using payment proposal.
  • Manual refund.

See also

Deposits and refunds (learn)