Automatic collection via SEPA

You can automatically collect outstanding items from debtors. You generate a collection order, which allows your bank to transfer amounts from the bank account numbers of debtors to your own bank account number. Of course, you need permission for this from your debtors.

Advantages:

  • Your debtors pay on time
  • You easily process recurring amounts
  • You reduce the number of reminders, interest loss and bad debts

Often the bank will (have to) perform an extra check on the initial SEPA collections. Follow the bank's instructions for delivering SEPA files.

Note:

In Belgium, this functionality is called Domiciliëring instead of Collection.

Description

Before you start with the automatic collection of invoices, you need to configure this functionality for the outstanding item (invoice) or as a default setting for the debtor. If at the debtor level you have specified that you want to automatically collect payments, Profit includes outstanding items of that debtor in collection orders. However, you can exclude specific items from collection. The collection order only includes invoices for which debit mandates have been provided.

You can record two types of debit mandates:

  • One-off mandate.

    You record debit mandate data per invoice.

  • Recurrent mandate.

    You record debit mandate data for each debtor from which you want to collect.

For the collection order, the distinction between one-off and recurrent mandates is important.

In addition, several collection methods are available for collection orders:

  • DefaultSEPA collection method

    Profit automatically suggests Default as the SEPA collection method for both recurrent and one-off collections. This collection method offers those being collected from good protection, including a refund right of 56 calendar days.

  • B2bSEPA collection method ('Business')

    For a debtor with recurrent collections, you set a 'Business' collection method if a refund right does not apply to these collections. This collection method does mean that the debit mandate must meet additional requirements. The debtor (the one being collected from) must register the debit mandate with the bank, so the bank, in case of a business collection transaction, can check if the collector is authorised and will not carry out the collection transaction if the mandate is missing. This check provides a guarantee against wrongful use of the business collection method which is not present for the default collection method.

In Profit, various mandate forms are available for mandates in writing.

For the execution of a collection order, you generate a collection order in Profit, which prepares an electronic collection file (in SEPA format). The SEPA or PAIN format (Payment initiation) is a file format in XML format used as standard within SEPA for sending payment and collection orders to the bank. You send this file to your bank. Your bank checks the collection order and then forwards the transactions to various banks in order to perform the collection.

Preparation

Procedure

Also see