Steps: Set Up Direct Debit Mandate Payments

Define the financial institution for a company including the IBAN number and Bank Identification Code.

Ensure that the bank account allows payment type of direct debit.

Direct Debit mandate is a legally binding document that allows banks and payment providers to simplify international payments. You first need a written consent from the customer accepting the conditions of the mandate. After signing and submitting, the customer can automatically pay invoices and direct debits using their bank account, or the business can submit direct debits to their bank using the mandate reference and creditor identifier number. Once issued, a mandate stays valid indefinitely unless canceled, but expires if unused for 36 months.

You can process direct debit payments for customers conforming with SEPA (Single Euro Payment Area) requirements to collect the amount from the customer’s bank account on the payment due date. To be able to process direct debits, ensure to configure the bank account, customer profile, creditor identifier, and set up prenotes if applicable.

Access the

Edit Company Creditor Identifiers

task.

Add direct debit mandate and pre-notifications business form layouts for a company. Add the creditor identification information. See Workday Report Design for SEPA Mandate and SEPA Mandate Pre-notifications for report design files.

Each Creditor Identifier can have 1 active Credit Identification # per country and company combination.

You can't inactivate a creditor identifier that's associated with a mandate.

Security: Set Up: Company General
domain in the Common Financial Management functional area.

Access the

Create ID Definition / Sequence Generator

task.

Define the sequence name, the ID increment, and the

Sequence ID Format

. You can add SEPA prefix for easier identification. Example: A format of

SEPA-[yyyy]-[seq]

displays as SEPA-2024-10
in the Sequence Preview. See Create ID Definitions and Sequence Generators.

When you don't specify an ID definition, Workday generates its own internal ID codes.

Security: Set up these domains:

Set Up: Company General
domain in the Common Financial Management functional area.

Set Up: Contact Info, IDs, and Personal Data
domain in the Contact Information functional area.

Set Up: System
domain in the System functional area.

Access the

Edit Tenant Setup - Financials

task.

Select the SEPA sequence generator in the

ID Generator for Direct Debit Mandates

prompt under the

Business Document Sequence IDs

section.

Security: Set Up: Tenant Setup - Financials
domain in the System functional area.

You can create a direct debit mandate, print it to share with customers, and after receiving the signed form back, create an invoice and settle it.