1. SEPA Direct Debits User Guide
  2. Collections Transactions
  3. Inbound Collections View
  4. Incoming Collections Processing on Activation Date

Incoming Collections Processing on Activation Date

Incoming Collections requests are received through CSM or through direct participant of the network.

DNF files received either from CSM (EBA STEP2) or through direct participant bank code containing pacs.003 messages is read through DD background batch job from the designated folder.

This batch job performs the de-bulking process and populates the individual transaction details of the message into staging table.

A set of transactions uploaded from a single file is identified using a unique File reference number.

Receipt file accounting will be posted on the file receipt date with value date as the interbank settlement date for every DNF file based on the message ID and file reference no combination using RCLG event code.

On upload of such pacs.003 messages in staging table, system creates an Incoming DD transaction with Payment type as ‘Collections’ and Transaction type as ‘Incoming’ along with branch and network resolution.

Transaction booking date is considered as the current application date with value date being future dated for DD transactions as specified in the DD incoming instruction.

Credit currency is considered as transfer currency for incoming DD transactions.

Debit account is derived from the Debtor IBAN received in the message. Credit account is derived from the Liquidation accounting code maintained in Network DD Preferences Maintenance.

Incoming DD transaction processing follows the following steps:
  • Transaction Validations
  • IBAN Check
  • Network limit validations
  • Duplicate Check
  • Sanctions Check
  • Charge/Tax Computation
  • ECA Approval
  • Debit & Credit Liquidation
  • Notification

On processing an inward Collections, before doing Mandate validations, the Debtor Instruction table are validated against to check if there is any Allowed/Disallowed Instruction maintained by the Debtor.

Instructions maintained for Debit Customer Number is scanned for the debit account (or if not available for ‘ALL’ option) and the Collection Scheme type. If no instruction is available, then the system proceeds with the next processing step.

If instructions are exists for the debtor, the following checks are carried out:
  • Whether the Collections transaction value date is between the restriction from date and to date.
  • Whether all the Collections are restricted for the customer.
  • If the option is ‘Disallowed‘, then the Inward Collections detail is not part of the listing on either the Creditor Scheme, or the Creditor Account, or the Mandate.
  • If the option is ’Allowed’, then the Inward Collections detail is part of the listing on either the Creditor Scheme, or the Creditor Account, or the Mandate.
The transaction is moved into Business Override Queue if all or any one of the above checks is true. The related error code and description gets displayed in the Queue.
  • All validations is performed on the activation date except the Debit and Credit liquidation, which is performed on the settlement date/value date specified in the transaction.

Parent topic: Inbound Collections View