import { Callout } from "zudoku/ui/Callout";

# Direct debit collections on the standard pages

Direct debit collections remain available in 365 business Banking. The recommended route is the cash receipt journal. This page describes the differences.

With 365 business Banking, you can continue to collect direct debits through the standard direct debit collections, so that collections already started can be completed on this route. Carry out new collections through the [cash receipt journal](../cash-receipt-journal.mdx).

## Standard functionality in Business Central

In the standard application you create a collection for due invoices on the direct debit collections page, export a SEPA XML file from it, upload it at the bank and then post the payment receipts. You reject entries manually. See [Collect payments with SEPA direct debit](https://learn.microsoft.com/en-us/dynamics365/business-central/finance-collect-payments-with-sepa-direct-debit) on Microsoft Learn.

## What 365 business Banking adds

- Its own **Create Direct Debit Collection** report, which replaces the standard report.
- On the direct debit collection entries page, the **Direct Debit Collection** part with the **Payment Method** (*Direct Debit* or *SEPA Collective Direct Debit*).
- The **Carry Out Payment** action, which replaces **Export** and **Reject** for a bank account with 365 business Banking: the collection is transmitted through the account's bank connection instead of as a file from the standard application.
- The mandate counter, which is advanced once per mandate and collection date with every bank connection. See [SEPA direct debit mandates](../payment-types/direct-debit.mdx).
- The status *Carried-Out/File Created* on every collection entry handed over, with every bank connection.
- An **end-to-end reference** on every collection entry, which is transferred to the bank account ledger entry when you post. Matching uses it to find the bank's credit (see below).
- A notification pointing to the cash receipt journal.

## Step by step

1. Choose the **Search** icon, enter **Direct Debit Collections** and open the page.
2. Choose **Create Direct Debit Collection** and fill in the options:

   | Option | Meaning |
   |---|---|
   | **From Due Date** / **To Due Date** | Due date range of the invoices to be collected |
   | **Partner Type** | *Company* (B2B) or *Person* (CORE) |
   | **Only Customers With Valid Mandate** | Only customers that have a valid mandate |
   | **Only Invoices With Valid Mandate** | Only invoices that carry a valid mandate |
   | **Bank Account No.** | The bank account to collect into; **Bank Account Name** is shown |

3. Choose **OK**. Business Central reports how many entries were created.
4. Open the collection's direct debit collection entries and review them. In the **Direct Debit Collection** part, choose the **Payment Method**: *Direct Debit* for individual direct debits, *SEPA Collective Direct Debit* for a collective one.
5. Choose **Carry Out Payment** and confirm the question whether to create direct debit payments for the lines. Business Central checks every entry with the standard check and stops at the first entry with an error.
6. For an account via PSD2/XS2A, authorize the direct debit in your bank's web form, for example with a TAN. With EBICS the file is submitted with your signature; with the pain file export you upload the file in online banking. See [Behavior per bank connection](../cash-receipt-journal.mdx#behavior-per-bank-connection).

   ![The Bank Payment Authentication page with the Carry out payments step and the Authenticate action](/assets/images/365-business-banking/bank-payment-authentication.en-US.png)
7. Post the payment receipts as in the standard application with the **Post Direct Debit Collection** report.

![The Direct Debit Collect. Entries page with two entries in status New and the Carry Out Payment action](/assets/images/365-business-banking/direct-debit-collection.en-US.png)

![The Create Direct Debit Collection request page with From Due Date and To Due Date, Partner Type Company, Only Customers With Valid Mandate, Bank Account No. and Bank Account Name](/assets/images/365-business-banking/direct-debit/create-direct-debit-collection.en-US.png)

After **Carry Out Payment**, all entries handed to the bank or the payment service have **Status** *Carried-Out/File Created*, regardless of whether PSD2/XS2A, EBICS or the pain file export is used. When the collection has no more entries with status *New*, Business Central also marks the collection itself as carried out. **Carry Out Payment** only processes entries with status *New*, so an entry that has already been handed over is not collected a second time.

### End-to-end reference of the collection entries

The end-to-end reference identifies your direct debits on the bank statement. Which reference a collection entry gets depends on the payment method and the bank connection:

- **Direct Debit** (single): a reference of its own per collection entry.
- **SEPA Collective Direct Debit** via EBICS or the pain file export: one shared reference for all entries of a payment block, that is, per collection date and sequence type. The bank books the block as one credit.
- **SEPA Collective Direct Debit** via PSD2/XS2A: one shared reference per finAPI order (mandate and date). It is stored only after finAPI has accepted the order and then appears in the **Transaction ID** field of all entries of the order.

After carrying out, the reference can no longer be changed. When you post the collection with **Post Direct Debit Collection**, Business Central carries the reference into the journal line and into the **bank account ledger entry**. This enables [automatic matching](../bank-reconciliation/apply.mdx) in the payment reconciliation journal to find the posting.

## Notification about the cash receipt journal

When you open the direct debit collections page or its entries, this notification appears: "Direct debits can now be collected from the cash receipt journal, with a suggestion, prenotifications and bank working days. This page keeps working as before."

- **Open cash receipt journal** takes you there.
- **Don't show again** turns the notification off for you permanently. You can turn it back on under **My Notifications** as **Direct debit via cash receipt journal**.

The notification does not block any actions.

## What differs from the cash receipt journal

| | Direct debit collections | [Cash receipt journal](../cash-receipt-journal.mdx) |
|---|---|---|
| Suggestion | **Create Direct Debit Collection** | **Suggest Direct Debits** |
| Collection date in bank working days, lead time | no | yes, see [Bank working days and lead times](lead-times.mdx) |
| Prenotification | no | yes, see [Direct debit prenotification](prenotification.mdx) |
| Verification of payee (VoP) of the payer | no | yes |
| Posting | a separate step from the collection | in the same journal, also **Carry Out Direct Debit and Post** |
| Double collection | prevented: an entry that is already being collected on one route is not suggested on the other | |

## Notes

<Callout type="note" title="Status of the collection entries">
The **Status** column of the direct debit collection entries shows *New*, *Carried-Out/File Created*, *Rejected* and *Posted* in 365 business Banking. In the standard application, the second value is *File Created*; 365 business Banking adds "Carried-Out" because the collection is handed over through the bank connection and not necessarily as a file. *Posted* means the receipt has been posted.
</Callout>

## Troubleshooting

| Message | Cause and remedy |
|---|---|
| "No entries have been created." | No invoice in the selected range meets the options |
| "To Date must be equal to or greater than From Date." | Correct **From Due Date** and **To Due Date** |
| "The bank account … is not set up for direct debit collections. It needs a number series for direct debit files. …" | Fill in **Direct Debit Msg. Nos.** on the bank account card |
| "There are no lines to create a payment for. …" | The collection has no entries with status *New* |
| "There are errors in the direct debit payment for transaction ID …. …" | The standard check found an error. Open the entry's errors, correct mandate or bank account and carry out again |

## See also

- [SEPA direct debit in the cash receipt journal](../cash-receipt-journal.mdx)
- [SEPA direct debit mandates](../payment-types/direct-debit.mdx)
- [Direct debit and payment collection](index.mdx)
- [Carry out SEPA direct debits (new feature)](../features/details/sepa-direct-debit.mdx)