ISO20022 Payment in D365FO for Norway – Part 3 (Company setup)

In this post there will be step by step setup requiring to enable a company to apply ISO20022 payment. Once you have imported ISO20022 from Microsoft repositories ISO20022 Payment in D365FO for Norway – Part 2 (Config) – DynFOTech, you need to activate provided configuration for each company in order to generate or import ISO20022 file:

  • legal entity (Organization administration > Organizations > Legal entities)
    • Address: The legal entity need to have a primary address with “Country/region”, “Street” and “Zip/postal code”. Country must have a value for ISO field (eg ISO code for Norway is “NO”.
Legal entities – Information
Norway ISO code

This information will be found on Pain.001 and Camt054 files as follows:

Pain.001 file
Camt.053 file

And on “Attending note” while generating Pain.001 file:

Attending note
  • Contact information
    • Phone: Primary phone number.
    • Fax: Primary fax number.
Contact information

Contact information will be found on cover letter excel file:

Cover letter
  • Bank account: Company bank account.
  • Giro account: Bank account number.
Legal entity_Bank account information
  • Tax registration number: Use organization number for this field. If the company is tax registered, you can add “MVA” after the organization number.
Company tax registration number
  • Return format error codes (Account payable > Setup > Payment setup > Return format error codes)

External status reason codes using for interpreting group status code with additional information that will show up while importing payment files. Following return error codes can be used:

Code Name Description
AC01 IncorrectAccountNumber Account number is invalid or missing.
AC03 InvalidCreditAccountNumber Creditor account number invalid or missing
AC06 BlockedAccount Account specified is blocked, prohibiting posting of transactions against it.
AC07 ClosedCreditAccountNumber Creditor account number closed
AG06 InvalidCreditorAgentCountry Creditor agent country code is missing or invalid
AG08 InvalidAccessRights Transaction failed due to invalid or missing user or access right
AM01 ZeroAmount Specified message amount is equal to zero
AM03 NotAllowedCurrency Specified message amount is an non processable currency outside of existing agreement
AM11 InvalidTransactionCurrency Transaction currency is invalid or missing
AM14 AmountExceedsAgreedLimit Transaction amount exceeds limits agreed between bank and client
BE04 MissingCreditAddress Specification of creditor’s address, which is required for payment, is missing/not correct (formerly IncorrectCreditorAddress).
BE07 MissingDebtorAddress Specification of debtor’s address, which is required for payment, is missing/not correct.
BE11 InvalidCreditCountry Creditor country code is missing or invalid
BE22 MissingCreditorName Creditor name is missing
CH03 RequestedExecutionDateOrRequestedCollectionDateTooFarInFuture Value in Requested Execution Date or Requested Collection Date is too far in the future
CH20 DecimalPointsNotCompatibleWithCurrency Number of decimal points not compatible with the currency
DU02 DuplicatePaymentInformationID Payment Information Block is not unique.
DUPL DuplicatePayment Payment is a duplicate of another payment
NARR Narrative Reason is provided as narrative information in the additional reason information.
RC02 InvalidBankIdentifier Bank identifier is invalid or missing.
Generic usage if cannot specify between debit or credit account
RC03 InvalidDebtorBankIdentifier Debtor bank identifier is invalid or missing
RC04 InvalidCreditorBankIdentifier Creditor bank identifier is invalid or missing
RC07 InvalidCreditorBICIdentifier Creditor BIC identifier is invalid or missing
RR01 MissingDebtorAccountOrIdentification Specification of the debtor’s account or unique identification needed for reasons of regulatory requirements is insufficient or missing
RR02 MissingDebtorNameOrAddress Specification of the debtor’s name and/or address needed for regulatory requirements is insufficient or missing.
RR03 MissingCreditNameOrAddress Specification of the creditor’s name and/or address needed for regulatory requirements is insufficient or missing.
RR04 RegulatoryReason Regulatory Reason
RR09 InvalidStructuredCreditorReference Structured creditor reference invalid or missing.
Return format codes

Example:

Pain.002 file with return format code
  • Return format status mapping (Account payable > Setup > Payment setup > Return format status mapping)

External payment transaction status and group status codes existing in Pain.002, Camt.053 and Camt.053 files:

Description Payment status Return status
Booked Approved BOOK
AcceptedSettlementCompleted Received ACCC
AcceptedCustomerProfile Received ACCP
AcceptedFundsChecked Received ACFC
AcceptedSettlementCompletedDebitorAccount Received ACSC
AcceptedSettlementInProcess Received ACSP
AcceptedTechnicalValidation Received ACTC
AcceptedWithoutPosting Received ACWC
AcceptedWithoutPosting Received ACWP
PartiallyAcceptedTechnicalCorrect Received PATC
Pending Received PDNG
Received Received RCVD
Rejected Rejected RJCT
Return format status mapping

Example:

Camt.054 payment status
  • Payment format code sets (Account payable > Setup > Payment setup > Payment format code sets)

Service level codes and local instrument needs to be defined and associates to method of payment. Some example for local instrument are as follows:

Code Type Name Information
NURG Service level NonurgentPayment Payment must be executed as a non-urgent transaction, which is typically identified as an ACH or low value transaction.
NUGP Service level NonurgentPriorityPayment Payment must be executed as a non-urgent transaction with priority settlement.
URGP Service level UrgentPayment Payment must be executed as an urgent transaction cleared through a real-time gross settlement system, which is typically identified as a wire or high value transaction.
SEPA Service level SingleEuroPaymentsArea Payment must be executed following the Single Euro Payments Area scheme.
IN Local instrument International payment CrossBorderCustomerCreditTransfer
Payment format code sets
Payment format code sets
  • Method of payment – ​​Vendor (Account payable > Setup > Payment setup > Method of payment)
  • Payment status: Approved. Choose a payment status required for posting of payments.
    • Payment type: Electronic payment.
Methods of payment – ​​vendors
  • Bank account: Select a bank account that is already activated for payment with the bank. Following fields should be updated:
    • Company ID: A specific value that is agreed with bank to send and receive payment file.
    • Division: A specific identifier for division of bank account. This field can be in regards to mandatory bank requirements.
    • Address: Once this field is updated with a value, you can update division field.
Methods of payment – ​​vendors- Payment account
Methods of payment – ​​vendors- Bank account
  • Payment specification (Account payable > Setup > Payment setup > Method of payment > Payment specification)

You need add domestic and foreign payment with local instrument and service level:

Payment specification

Domestics:

Payment specification – Domestics

Foreign:

Payment specification – Foreign
  • File formats > Generic electronic Export format : Yes
  • File formats > Export format configuration : ISO20022 Credit transfer (NO)
  • File formats > Return format secondary configuration: Camt.054
  • File formats > Return format configuration : Pain.002
Methods of payment – ​​vendors – File formats

Note: Payment control can be used to define mandatory fields (eg Payment ID is mandatory)

Note: Payment attributes can be used to define attributes for the method of payment (eg Third-party bank)

  • Method of payment – ​​Customer (Account receivable > Setup > Payment setup > Method of payment)
  • Payment status: Received. Choose a payment status required for posting of payments.
    • Payment type: Electronic payment.
Methods of payment – ​​customers
  • Bank account: Select a bank account that is already activated for payment with the bank. Following fields should be updated:
    • Company ID: A specific value that is agreed with bank to send and receive payment file.
    • Division: A specific identifier for division of bank account. This field can be in regards to mandatory bank requirements.
    • Address: Once this field is updated with a value, you can update division field.
Methods of payment – ​​customers – payment account
Methods of payment – ​​customers – Bank account
  • File formats > Generic electronic Import format : Yes
  • File formats > Import format configuration : Camt.054
Methods of payment – ​​customers – File formats
  • Bank statement format: In order to import electronic bank statement and automatic reconciliation, you need to setup bank statement format ISO20022 (Camt.053)
Bank statement format

Then provide this statement format for bank account that you want to activate advanced bank reconciliation:

Bank account – reconciliation

Then, the legal entity is activated for importing and exporting ISO20022 bank files.

Useful links:

https://docs.microsoft.com/en-us/dynamics365/finance/cash-bank-management/tasks/vendor-payment-overview

https://docs.microsoft.com/en-us/dynamics365/finance/accounts-receivable/tasks/establish-customer-method-payment

https://docs.microsoft.com/en-us/dynamics365/finance/cash-bank-management/set-up-advanced-bank-reconciliation-import-process

.

Leave a Comment