In Spain there is a convention to include the “FSDD” on Sepa MsgID to request to the bank the advance the amount of the payments by deducting some percentage of it. This convetion was accorded by the Spanish Bank Association.
I’m wondering how this is managed on other SEPA countries to see if we can develop a common feature for the sepa module.
As far as I know invoice factoring in Belgium is not done via SEPA. The invoice is just send to the financial institute that does the factoring (it is not necessary the daily bank of the company).
Advance payment is different from factoring. In factoring you sell the invoice to the bank which means that they take the risk of not being paid.
With advance payments your bank advances you the money of the invoice (or part of it). If the invoice is not paid by the customer on the due date (the operation is rejected by the customer or there’s no money available for the payment) the bank will take your money back plus a commission.
Any way, it is very similar to invoice factoring. It is like a sale but with a cancellation clause.
But I think it is very uncommon especially with SEPA direct debit. For example, the maximum delay the bank must process a direct debit is the next first working day after the due date. So there is really no benefit for advance payment on SEPA.
But as I understand the bank pay before the due date. So a company needing such tool has serious cash flow issue and is probably not sustainable. The only time I ever heard about something close to that is for dealing with the government. But there is no risk for the bank because the government always pays (but late).
Not at all. Although it’s less frequently used nowadays it’s still widely used. The advantage of this kind of financing is that the bank gives you the money because you have something to be paid, so the % can be lower than with other kind of financing solutions. Also it can be frequent if the payment term of your customers is larger than your suppliers.
This is diferent because it’s the bank that gives you the money before the due date and gets some %. It’s like a loan but for the receivable amounts and probably with less risks for the bank.
It’s quite common in Spain.
By now we can have this working by setting the “FSDD” prefix on the “Group sequence” but the issue is that code will be sent to all payments because the sequence is unique per journal. So in order to have full flexibility we need to be able to set the sequence per journal so the user can choose if the advancement is requested to the bank or not (by creating two journals of different sequences)
Does it sound like something that can be implemented on account_payment module?
I do not think it is a good idea because the goal of MsgId is to identify non-ambiguously message.
Indeed I think it will be better to put some abstraction on the retrieval of the MsgId in every template so it can be customized.
The FSDD should be done only on account_es as for now it is only known in this country.
If just filled Issue 9005: Request advancement of spanish payments - Tryton issue tracker which implements this