ISO20022 generic and SEPA credit transfer in the Lithuanian and Estonian version of Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, and Microsoft Dynamics AX 2009 SP1

SEPA/ISO20022 credit transfers in Microsoft Dynamics AX 2012 R2 and AX 2012 R3

The SEPA credit transfer export payments are designed in AX 2012 R3 through the Application Integration Framework (AIF). More details could be found in TechNet Article:

https://technet.microsoft.com/en-us/library/hh227461.aspx

To generate the country/region specific version of the credit transfer file, in the Payment processing data form, in the Value field, for Lithuania, type "LT", for Estonia type "EE".

You may use this format if you need to generate SEPA payment (euro payment to country in SEPA zone).

More info can be found in SEPA CT Whitepaper



For Lithuania and Estonia, the generic ISO20022 credit transfer payment format is implemented by using the payment format functionality. Two new payment formats are available:

- Generic ISO20022 CredTrans LT

- Generic ISO20022 CredTrans EE

You may use these formats if you need to generate SEPA or generic ISO20022 payment.

SEPA/ISO20022 credit transfers in Microsoft Dynamics AX 2009 SP1

The SEPA credit transfer payment format is implemented by using the payment format functionality. Nine SEPA export file formats are already available: SEPA ISO20022 CredTrans XX pain 001.001.03, where XX – country code of nine supported countries. More info can be found in SEPA CT Whitepaper

You may also use SEPA ISO20022 CredTrans LT and SEPA ISO 20022 CredTrans EE export formats to generate SEPA payment (euro payment to country in SEPA zone)

Also, several country-specific Generic ISO20022 formats are available for foreign payments generation: Generic ISO20022 CredTrans XX, where XX – country code

For Lithuania and Estonia, the generic ISO20022 credit transfer payment format is implemented by using the payment format functionality. Two new export formats are available:

- Generic ISO20022 CredTrans LT

- Generic ISO20022 CredTrans EE

You may use these formats if you need to generate SEPA or foreign ISO20022 generic payment.

Setup

Before you can create ISO20022 and SEPA export files, you must set up the legal entity and bank account information in Microsoft Dynamics AX.

Set up legal entity information

Use the Legal entities form to set up legal entity information for ISO20022/SEPA payments.

For the legal entity initiating the payment and debtor legal entity, set up Name, Address of legal entity (make sure, ISO country code is set on Country/region of legal entity).


For Lithuania: Set up Tax registration number

For Estonia: Set up Routing number

Set up company bank accounts for ISO20022/SEPA credit transfers

Use the Bank accounts form to enter the bank account information for your legal entity.

You should provide IBANs and SWIFT codes (BIC) to make ISO20022/SEPA payments for bank account for the legal entity that is requesting the transfer.

Set up vendors and vendor bank accounts for ISO20022/SEPA credit transfers

Use Vendor form to set up vendor information for ISO20022/SEPA payments.

Set up Name, Address (of type Invoice, and/or Primary address; make sure, ISO country code is set on Country/region of vendor address).


For Lithuania: Set up Enterprise code (Invoice and delivery tab).


Use Vendor bank accounts form to set up information about vendor bank accounts.

Make sure, address is set up for vendor bank account, and country code of vendor bank account address is set up in Foreign trade parameters, Country/region properties tab and country/region type is assigned to it: EU, EFTA, or Third party.

Only payments in EUR and to bank accounts in countries with Country/region type = Domestic, EU or EFTA are identified as SEPA payments, all other payments are identified as Foreign payments.


You should provide IBANs and SWIFT codes (BIC) for a vendor bank account that is used for ISO20022/SEPA payments.

For foreign payments (non-SEPA ISO20022), you can provide “Bank account number” (General tab) on vendor bank account different from IBAN.

Also, for foreign payments you can set up additional country-specific data:

Set up Method of payment for ISO20022/SEPA LT or EE credit transfer

Use Methods of payment – vendors form to set up the method of payment. In the Export format field choose

- Generic ISO20022 CredTrans LT for Lithuania

- Generic ISO20022 CredTrans EE for Estonia

for exporting payment in SEPA and/or generic ISO20022 format.


For Lithuania: In the field Sequence number (tab General) choose number sequence for payment order. The Document number will be generated automatically when Generate payment function is run. Document number is exported to the xml tag <IntrId>.

Transactions

Create and post invoices from vendors in usual way.


Create and export payments using a SEPA payment format in AX 2012 R2 and AX 2012 R3

Use the Payment journal form to create and export vendor payments. More info can be found in TechNet Article https://technet.microsoft.com/en-us/library/hh227461.aspx and SEPA CT Whitepaper

For Lithuania or Estonia, in the Generate payments dialog in the field Country, type "LT" or "EE" for exporting SEPA file with Lithuanian or Estonian specifics.



Create and export payments using ISO20022 generic payment format in AX 2009 SP1, AX 2012 R2 and AX 2012 R3 for Lithuania and Estonia.

Use the Payment journal form to create and export vendor payments.

1. Click Accounts payable > Journals > Payments > Payment journal. Create or select a journal

2. For Lithuania: On Tab General in the group Foreign payments information fill the default values for foreign payment:

Payment priority: Standard, Urgent or Express.

Foreign bank fees: Of the sender, Shared, Of the beneficiary

Inform by telex check-box

Inform by phone check-box

Debit currency

You can change the default values for each payment line on tab Payment, group of fields Foreign payments information



For Estonia: On Tab General in the group Foreign payments information fill the default values for foreign payment:

Payment priority: Standard, Urgent or Express

Foreign bank fees: Of the sender, Shared, Of the beneficiary

You can change the default values for each payment line on tab Payment, group of fields Foreign payments information

3. Click Lines to open the Journal voucher form for payment journal lines.

4. Click Payment proposal > Create payment proposal.

5. In the Vendor payment proposal form, click Select.

6. In the VendPaymProposal form, specify the criteria for retrieving payments for the SEPA credit transfer. For example, for the Method of payment field, enter the method of payment that uses one of the SEPA ISO20022 CredTrans export file formats in the Criteria field, and then click OK.

7. In the Vendor payment proposal form, click OK.

8. In the Vendor payment proposal form that appears as a result, click Transfer.

9. In the Transfer payment proposal to journal form, click OK.

10. In the Journal voucher form, on the Overview tab, select a line.

11. For Lithuania, on tab Payment, you can fill fields valuable for payment initiation:
Note – type payment notes to be presented in Unstructured remittance information

Payment purpose – type 10 chars code to be presented in Structured creditor reference information

Document – payment order number to be presented in Payment Identificationà Instruction Identification (InstrId). The Document number will be generated automatically (from the number sequence chosen in Sequence field in Method of payment form), when Generate payment function is run.

Document date – payment order date. The Document date will be generated automatically with Processing date from Generate payments dialog.



For Estonia: on tab Payment, you can fill fields valuable for payment initiation:

Note – type payment notes to be presented in Unstructured remittance information

Payment ID – type 10 Reference ID to be used in Structured creditor reference information

Document – payment order number to be presented in Payment Identificationà Instruction Identification (InstrId). The Document number will be generated automatically (with Voucher Id), when Generate payment function is run.

Document date – payment order date. The Document date will be generated automatically with Processing date from Generate payments dialog.



12. Click Functions > Generate payments.

- In the Method of payment field, select a method of payment: Generic ISO20022 CredTrans LT for Lithuania and Generic ISO20022 CredTrans EE for Estonia

- Or select the Export format option, and then select the appropriate export format to use.

13. And then in the Bank account field, select the bank account that the payment is drawn from.

14. Click Dialog. In the Dialog form, enter information for the export file. The following table provides information about each field.



15. Click OK. In the Generate payments form, click OK to create the payment file.

Send the credit transfer file to the bank

When you generate payments, the payments are saved to the location that you specify in the Dialog form or to the location specified in your outbound port (for SEPA payments in Microsoft Dynamics AX 2012 R2 and AX 2012 R3 only). The next step is to send the .xml file to your bank. This process varies from bank to bank. Follow the instructions from your bank to submit the files to the bank for processing.