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Directdebit/Functional Specifications

Contents

Direct Debit Form of Payment – Functional Specifications

Overview and Justification

Purpose

This document contains the functional specifications for the Direct Debit Form of Payment functionality.

A direct debit payment is a form of payment where the selling organization directly charges to amount of the payment to a bank account or a credit card of the business partner associated with the payment.

This is an increasingly popular form of payments in many countries. In Spain, this practice is known as “domicialiacion bancaria”.

Scope

The current scope of the project is to only automate the recording of a direct debit transaction within Openbravo. It does not cover the automation of the execution of the payment instructions with the bank. This additional capability can be added at a later point in time.

Also, at the moment only direct debit to bank accounts are supported. Credit cards and other payment instruments are out of scope.

This scope can be achieved by:

Please notice that the process should handle inter-company payments and if the business partner associated with the payment is an organization, a mirror bank statement transaction should be created in that organization as well.

Justification

Direct Debit payment is an increasingly common form of payment in many countries.

New definitions and acronyms

Direct Debit: a form of payment where the selling organization directly charges to amount of the payment to a bank account or a credit card of the business partner associated with the payment.

Design and technical considerations

Technical considerations

The features provided by this project will be delivered as a module.

Users & business process description

User goals

The feature covered by this specifications automates functionality that is otherwise already available in the product. The goal of the user is to execute his tasks in a faster, more efficient and more reliable way way and this feature enables that.

User roles and personas

This project involves primarily staff from the sales and purchasing department.

Specifically the impacted roles is:

Business process definition

The business process automated by this feature is the standard sales flow. No variations are introduced in the business flow but one step is automated thanks to the automatic creation of bank statement transactions.

The steps of the process are:

  1. Sales Staff creates sales order specifying Direct Debit as form of payment
  2. Sales Staff completes order.
  3. AR Staff creates the invoice from the sales order. When the invoice is complete, a receivable payment is created with a given due date.
  4. When the due date is reached a bank statement is automatically created.

A similar process exists in the case of receivable payments associated with sales orders:

  1. Sales Staff creates sales order specifying Direct Debit as form of payment and associates a receivable payment to the order.
  2. Sales Staff completes order.
  3. When the due date of the payment is reached a bank statement is automatically created.

Similar processes exists in the procurement flow:

  1. Purchasing Staff creates purchase order specifying Direct Debit as form of payment
  2. Purchasing Staff completes order.
  3. AP Staff creates the purchase invoice from the order. When the invoice is complete, a payable order is created with a given due date.
  4. When the due date is reached a bank statement is automatically created for the payment.

And:

  1. Purchasing Staff creates purchase order specifying Direct Debit as form of payment and associates a payable payment to the order.
  2. Purchasing Staff completes order.
  3. When the due date of the payment is reached a bank statement is automatically created.

User Stories

First story: direct debit for sales invoice to business partner

On June 1st, Tim – a member of the AR Staff of Micro-toys Holding – creates a sales invoice and specifies Direct Debit as form of payment. The invoice also has a payment term that causes the payment to be due on July 15th.

On July 15th, Tim launches the Process Direct Debit process and a bank statement for the invoice amount is created that settles the receivable.

Second story: direct debit for sales order to business partner

On June 1st, Tim – a member of the AR Staff of Micro-toys Holding – creates a sales order for 100 euros and specifies Direct Debit as form of payment. Tim also creates a payment for 30 euros associated with the order and enters June 5th as due date.

The order also has a payment term that causes the payment to be due on July 15th.

Finally Tim completes the order, generate the corresponding invoice and completes it. This causes an additional payment for 70 euros and a due date of July 15th to be created.

On July 5th, Tim launches the Process Direct Debit process and a bank statement for 30 euros settles the first receivable.

On July 15th, Tim launches the Process Direct Debit process and a bank statement for 70 euros is created that settles the second receivable.

Third story: direct debit for sales invoice to subsidiary

On June 1st, Tim – a member of the AR Staff of Micro-toys Holding – creates an inter-company sales invoice for Micro-toys Spain and specifies Direct Debit as form of payment. The invoice also has a payment term that causes the payment to be due on July 15th.

The completion of the inter-company sales invoice triggers the creation of an inter-company purchase invoice (either manually or automatically) and a corresponding payment associated to the purchasing invoice.

On July 15th, Tim launches the Process Direct Debit process and a bank statement for the sales invoice amount is created in the selling organization that settles the receivable. A bank statement for the purchasing invoice amount is created in the purchasing organization to settle the payable.

Functional Requirements

Configuration

Num Requirement Importance Status
1.1 A new entry called Direct Debit is added to the list of value for Forms of Payment. Must Have In scope

Process Direct Debit

Num Requirement Importance Status
2.1 A new process called Process Direct Debit is required to process pending receivable and payables payments of having Direct Debit as form of payment and creating the corresponding bank statement transaction.

This process accepts the following optional parameters:

  • Organization
  • Bank account
  • Business partner
  • Date from
  • Date to

If the parameters are not specified, the process will consider all payment in that dimension. For instance, if no organization is specified, direct debits are processed in all organizations in the current client.

Must Have In scope

User Interface

This module does not have a user interace.

License

The module required by this project is to be released under the Openbravo Public License.

Discussion Items

Open discussion items

None.

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