How You Create and Edit a SEPA Debit Authorization
A SEPA debit authorization is a paper or electronic document that authorizes you, as a SEPA-based creditor, or payee, to collect payments throughout the SEPA region by debiting your SEPA-based customer's, payer's or debtor's, bank account. As the creditor, you or your bank, as
To initiate collection, SEPA countries require banks to use the ISO 20022 XML message standards, known as SEPA data formats, which are legally binding between banks. Similarly, Oracle recommends that you use the SEPA formats for initiating payments. Banks can, however, continue to accept other formats from their customers for the initiation of SEPA payments.
In the Create or Edit Debit Authorization dialog box, you can perform the following tasks:
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Enter or edit debtor details
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Enter or edit creditor details
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Enter or edit authorization details
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View history
Navigation to the Create Debit Authorization dialog box: Receivables > Billing > Manage Customers link > Manage Customers page > Search on Bank Account Number > Site link > Bank Account tab > Payment Instruments section.
Enter or Edit Debtor Details
SEPA debit authorizations require both you and your customer to specify the following identifiers for your bank accounts and bank:
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IBAN (International Bank Account Number): An alphanumeric sequence that conforms to the ISO 20022 standard for uniquely identifying an international bank account number. It contains the routing information required to transfer a payment from one bank to another.
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BIC (Bank Identifier Code): A universal method of identifying financial institutions to facilitate the automated processing of telecommunication messages in banking and related financial environments.
For SEPA direct debits, all transactions are in euro. If your accounts or those of your customer are in any other currency, the funds for the SEPA direct debits must be converted to euro.
Enter or Edit Creditor Details
You must provide your unique creditor identification number in the XML message for SEPA direct debits and when you create or edit a debit authorization.
The creditor identification number:
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Is issued by your bank
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Identifies you as the creditor on the paper SEPA debit authorization
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Remains constant
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Proves that you can initiate a SEPA direct debit
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Varies in length between countries
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Contains a maximum of 35 characters
The creditor identification number remains the same over time to enable your customer and his bank to return to you for refunds, complaints, or to confirm the existence of a SEPA debit authorization when you present a SEPA direct debit collection notification.
Enter or Edit Debit Authorization Details
When you create a SEPA debit authorization, you can select a transaction type of Recurring or One-off.
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Recurring direct debits: Your customer authorizes regular direct debits that you initiate.
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One-off direct debits: Your customer authorizes collection of only one direct debit.
Note: A one-off SEPA debit authorization cannot be used for any subsequent transactions.
You can also specify the intended frequency of collection against a debit authorization. Frequency can range from daily to annually.
Another optional attribute is the final collection date, which is the intended date of the last collection against a debit authorization.
SEPA debit authorizations are versioned as they are updated. The application assigns a 1 to the first version of a debit authorization. Version 1 increases by one due to a change in:
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A debtor bank account
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A creditor legal entity
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A creditor identification number
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An authorization reference identifier
If any of the preceding values change, a reason for the change to the SEPA debit authorization is required in the Edit Debit Authorization dialog box.
SEPA debit authorizations are date-specific. The following rules apply:
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You can specify both a final collection date and a cancellation date.
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A canceled SEPA debit authorization cannot be reenabled.
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A SEPA debit authorization automatically expires when 36 months elapse after the last initiated direct debit.
View History
In the History section, you can see all the past versions of the SEPA debit authorization.