SEPA and generic ISO 20022 credit transfer for Latvia is available in Microsoft Dynamics AX 2012 R3

Before you can create ISO20022 and SEPA export files, you must set up the legal entity and bank account information in Microsoft Dynamics AX 2012 R3.

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), Tax registration 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.


For Latvia, in the field "P/O Numeration" (fast tab Currency management, group of fields Payment order), 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>. 

For Latvia, in the field "Payment order form" (fast tab Currency management, group of fields Payment order) choose either "Local" or "Currency", for printing either domestic or foreign payment order in Payment journal.

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 (make sure, ISO country code is set on Country/region of vendor address).



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

Make sure, the 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 LV credit transfer

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

• Generic ISO20022 CredTrans LV for Latvia

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

Transactions

Create and post invoices from vendors in usual way.

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

Use the Payment journal form to create and export vendor payments. More information can be found in TechNet Article (AUT, BEL, DEU, ESP, FIN, FRA, ITA, NLD) Create a country/region-specific SEPA credit transfer payment file [AX 2012] and SEPA CT Whitepaper.

For Latvia, in the Generate payments dialog in the field Country, type "LV" for exporting SEPA file with Latvian specifics.

Create and export payments using ISO20022 generic payment format in AX 2012 R3 for Latvia

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

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

For Latvia: 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

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

3.    Click Payment proposal > Create payment proposal.

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

5.    In the VendPaymProposal form, specify the criteria for retrieving payments for the SEPA credit transfer, and then click OK.

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

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

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

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

10. For Latvia: on tab Payment, you can fill fields valuable for payment initiation:

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

Central bank purpose code – choose the code for reporting to the central bank (the code is exported in the tag <RgltryRptg> for cross-border payments.

Payment ID – review or type ID to be used in Structured creditor reference information.

Document – review or type payment order number to be presented in Payment Identificationà Instruction Identification (InstrId). The Document number will be generated automatically (with next number from the number sequence chosen in the bank account, field P/O Numeration), when Generate payment function is run.

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



11. Click Functions > Generate payments.

-        In the Method of payment field, select a method of payment: Generic ISO20022 CredTrans LV for Latvia



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

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



14. Click OK.

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

16. Click Print > Print payment order if you need to print the payment order in paper. Either domestic or foreign payment order will be printed depending on the value chosen in the field Payment order in Bank account card.

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 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.