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Administrator Guide
Last Updated: 2025-01-10
Steps: Create Direct Debit Mandates for Direct Debit Customer Payments

Steps: Create Direct Debit Mandates for Direct Debit Customer Payments

Direct debit mandates enable you to request approval from customers to collect debit payments. With direct debit mandates, a payee can collect both recurring and one-off payments from customers who provide a signed mandate to the payee.
With Workday, you can create and store direct debit mandates, and then associate them with customer invoices. You can also send prenotifications to inform customers of future settlements.
  1. Access the
    Create Direct Debit Mandate
     task.
    • Complete all fields under the
      Creditor Information
       section. Select the type of payment for the mandate. The banking details you configured on the customer profile, display under the
      Debtor Information
       section.
    • When you select
      Recurring
       payment type, the
      Sequence
       is set to
      First
       automatically. After the payment is generated, the sequence will automatically change to Recurring. When your next payment is the last direct debit for the mandate, you can change the
      Sequence
       to
      Final
      . Workday automatically inactivates the mandate once the last payment completes.
    • (Optional) Select the
      Pre-notification Required
       check box. Workday then displays the
      Minimum Days for Pre-notification
       field. For invoices associated with the mandate to be available for settlement, you must pre-notify them for at least the number of specified days.
    • Workday creates the mandate in a
      Draft
      Status
      . To change to
      Active
      , IBAN value on customer profile is required.
    Security:
    Process: Direct Debit Mandate
     domain in the Customer Accounts functional area.
  2. Select
    Direct Debit Mandate
    Print Direct Debit Mandate
     from the related actions menu of the direct debit mandate.
    Send the direct debit mandate draft to your customer for completion of debtor information, payment information, and signature. Workday doesn't include the Debtor information in the printed file.
    Security:
    Reports: Direct Debit Mandate
     domain in the Customer Accounts functional area.
  3. (Optional) Access the
    Print Direct Debit Mandate Pre-notifications
     task.
    Workday generates PDF files that you can send to your customers.
    Security:
    Reports: Direct Debit Mandate
     domain in the Customer Accounts functional area.
  4. Access the
    Overview
     profile group of the customer.
    1. To display the direct debit mandate reference number on customer invoices, select the
      Mandate Required
       check box on the
      Payment Details
       report.
    2. Add settlement bank account details from the completed direct debit mandate draft to the
      Banking
       report. Select
      Requires Prenote
       checkbox when you have mandates.
  5. Access the
    Edit Direct Debit Mandate
     task.
    After you receive the signed mandate back from the customer, verify that all fields are complete and change the
    Mandate Status
     to
    Active
    . You can't edit any fields in this status.
    Once a mandate is associated with an approved or in-progress invoices, or with invoices that are unpaid or partially paid, you can’t change the status.
    (Optional) Upload a copy of the completed direct debit mandate to the
    Attachments
     tab.
    Security:
    Process: Direct Debit Mandate
     domain in the Customer Accounts functional area.
  6. When the
    Payment Type
     you select on the invoice matches the payment type on the direct debit mandate, Workday populates these fields:
    • Direct Debit Mandate
    • Pre-notification Date
    To send the customer invoices electronically to the bank, configure the Electronic Invoice Connector for your region. See Steps: Set Up Electronic Invoice Connector
After you create the direct debit mandate and create the related invoices, Workday initiates the
Customer Invoice Event
 business process for review and approval. Workday processes accounting after the business process completes and uses the Receivables account posting rule to record customer payments due.
  • You can create a settlement run to settle the customer invoices.
    • Workday groups all eligible customer invoices and adjustments for the same company, payee, and with the same direct debit mandate into a single payment. See Create Manual Settlement Runs. You can also select
      Pay via Direct Debit
       from the related actions menu of the customer invoice to create settlement run for one-off payment.
    • When the customer invoice with a mandate is 14 days past the pre-notification date, Workday includes it in the settlement run.
    • When the settlement run task completes, Workday automatically records and applies the payment, creates a deposit, and creates operational journals in the company currency for approved transactions. If the transaction and company currencies differ, Workday converts the amounts to the company currency. Auto Apply process is not run.
    • Accounting for direct debit transactions.
      Transaction
      Debit
      Credit
      Customer Invoice
      Receivables
      Revenue
      Settlement Run
      Cash
      Receivables
      Cancel Customer Payment
      Receivables
      Cash
    • Workday updates these direct debit mandate fields after the settlement run completes:
      • Last Settlement Date
      • Mandate Status
        : To
        Inactive
         for
        One-Off
         mandate and for
        Recurring
         mandate with a
        Sequence
         of
        Final
        . When you can cancel the payment, the status changes back to
        Active
        .
      • Sequence
        : To
        First
        ,
        Second
        , and so on, or
        Final
        . When you cancel the 1st payment for a customer invoice associated with a
        Recurring
         mandate type, the sequence changes from
        Recurring
         back to
        First
         .
  • If the customer bank account has insufficient funds, you can return the direct debit customer invoice by accessing the related actions menu of the customer payment and selecting
    Return
    .
  • You can access these reports to obtain further details:
    • Find Direct Debit Mandate
    • Find Direct Debit Mandate Pre-notifications Printing Runs
  • For bulk transactions, you can use these web service:
    • Get Company Creditor Identifiers
    • Put Company Creditor Identifier
    • Set Up: Company General
    • Submit Customer Invoice