ISO 20022 Direct Debit Prenotifications

An ISO 20022 direct debit prenotification is a written or electronic letter using the required ISO 20022 message standard for SEPA countries. A prenotification must be sent to your customer five days in advance of collection. The prenotification informs customers of each upcoming direct

The prenotification provides advance warning to your customers and ensures that funds are available for collection. The prenotification also allows your customer to reject a collection, if necessary, before settlement.

This topic discusses the following aspects of prenotifications:

ISO 20022 format
Generation
Validation
Delivery

ISO 20022 Format

Per ISO 20022 payment standards, the ISO 20022 direct debit prenotification letter must include the following information:

Debit authorization reference identifier
Debtor's bank account number
Debtor's bank
Direct debit currency must be euro only
Direct debit amount
Direct debit date

Generation

Before you can generate prenotifications, an active debit authorization must exist between you and your customer.

During receipt method setup, Receivables provides an option for users to specify whether transactions are ISO 20022. When an automatic receipt batch is created for ISO 20022 transactions, prenotifications are automatically generated by the Automatic Receipts Format Report.

Note:

Before creating receipts, the Receivables user must know that they are for ISO 20022 transactions and that he or she must subsequently download prenotifications for delivery to customers. Receivables doesn't notify Payments when it generates prenotifications.

The following table describes the steps that the Receivables user can perform to submit the Automatic Receipts Format Report.

Scenario	Step Description	Result
Generate prenotifications while creating automatic receipts.	1. Navigate to the Create Automatic Receipt Batch page or to the Create Automatic Receipt Batch process in Oracle Enterprise Scheduler. 2. Enter all required attributes. 3. Select the Create, Approve, and Format options and submit the process.	Automatic receipt batch is created, approved, and formatted to generate prenotification letters.
Generate prenotifications while approving automatic receipts.	1. Navigate to the Receivables Balances work area. 2. Open an automatic receipt batch that is pending approval. 3. Select the Approve and Format action.	Automatic receipt batch is approved and formatted to generate prenotification letters.
Generate prenotifications while confirming automatic receipts.	1. Navigate to the Receivables Balances work area. 2. Open an automatic receipt batch that is pending confirmation. 3. Select the Format action.	Automatic receipt batch is formatted to generate prenotification letters.

Scenario

Step Description

Result

Generate prenotifications while creating automatic receipts.

1. Navigate to the Create Automatic Receipt Batch page or to the Create Automatic Receipt Batch process in Oracle Enterprise Scheduler.

2. Enter all required attributes.

3. Select the Create, Approve, and Format options and submit the process.

Automatic receipt batch is created, approved, and formatted to generate prenotification letters.

Generate prenotifications while approving automatic receipts.

1. Navigate to the Receivables Balances work area.

2. Open an automatic receipt batch that is pending approval.

3. Select the Approve and Format action.

Automatic receipt batch is approved and formatted to generate prenotification letters.

Generate prenotifications while confirming automatic receipts.

1. Navigate to the Receivables Balances work area.

2. Open an automatic receipt batch that is pending confirmation.

3. Select the Format action.

Automatic receipt batch is formatted to generate prenotification letters.

Validation

Prenotifications don't undergo any validations.

Delivery

After generation, prenotifications are not automatically delivered to customers. Instead, they are manually downloaded and then delivered to customers by E-Mail or through a country's postal system.

Prenotifications are delivered according to the following guidelines for SEPA settlement batches:

A prenotification notifies the debtor at least five calendar days before collecting the payment, unless a different time line has been agreed between you and the debtor.
The lead time for submitting a SEPA CORE direct debit file (payment instrument governed by the rules of the SEPA Core Direct Debit Scheme) to a bank is five days for the first use of a debit authorization and two days for subsequent use.
The lead time for submitting a SEPA B2B (SEPA Business to Business) direct debit file to a bank for business debtors is one day for the first use of a debit authorization and one day for subsequent use.

Note:

Receivables doesn't notify Payments when it delivers prenotifications.

You and your customer may agree to a frequency of prenotification delivery. For example, with a recurrent SEPA direct debit, you can agree to send a prenotification once a year. This can only be done, however, if the amount to be collected stays the same. Otherwise, a new prenotification must be sent to your customer.