Direct Debit

In this scope item, you can use the direct debit payment method in the Single Euro Payments Area (SEPA) to collect payments from your customers in Euro and certain non-SEPA countries / regions to collect payments from your customers in your local currency.

For countries in SEPA, a debtor grants mandates to a creditor as part of a direct debit procedure. Using SAP S/4HANA, you create and maintain the SEPA mandates from the customers, which are the legal basis for the direct debit payment in SEPA.

The system checks that a valid SEPA mandate exists during the payment run. For SEPA countries, the system saves the ID of the SEPA mandate in the payment data and creates a SEPA-specific payment medium.

You can print out SEPA mandates on paper and repeat the printing.

Key Process Steps Covered

Maintain customer master data
Create and print direct debit mandate for SEPA countries
Run payment program
Create payment instructions file
Send payment instruction file to bank

Benefits

Reduce workload in accounts receivables
Ensure payment on time
Reduce customer credit risk
Improve cash flow forecasting