How to generate ISO 20022 format bank file

Owned by Halvard Meijer
Last updated: Jun 01, 2023 by Valentyna Plokhykh
6 min read

This article explains the setup needed in Adonis Personnel Manager - APM, as well as the steps to take to generate a bank file of ISO 20022 format.

Description

ISO has provided a new standard scheme for the bank files. Many EU banks have already started using such scheme, however, ISO 20022 standard is quite flexible and the requirements to the accepted files can vary from bank to bank. Adonis currently introduced ISO 20022 format bank interface to BNP Paribas, Credit Suisse, Hellenic Bank, CFONB, Rabobank, Danske Bank.

Step-by-step guide

General Codes and Organization Set up

  1. Your company bank needs to be added to the list of banks in General Codes > Payroll > Banks. Mandatory to add bank SWIFT code and define the bank format for ISO 20022 file from the drop-down menu in Bank Transfer section.

  2. In Organization structure under company Payroll > Payment settings in Bank Account for NetPay use "Insert" button on your keyboard and add your company bank account, ID (just for numeric order when multiple bank accounts), company bank and currency.
    The other fields are not used in ISO 20022 bank interface.





  3. Make sure that in Organization structure under company Payroll > Payment > Balance Action, the ISO 20022/SWIFT balance action is enabled.

  4. Check Global Options > Payroll > Countries type definition to make sure that selection of SEPA (Single Euro Payment Area) and EEA (European Economic Area) countries is correct. The selection is predefined, however some new countries might join SEPA or EEA, then this needs to be maintained by the customer accordingly.

Person/Employee set up

  1. Select a person in crew list and open Payroll > Payment tab (can be reached both from Personal Details data group and from Payroll module). New Balance tab contains the information about the person's payment details. Select balance action ISO 20022/Swift, add IBAN, receiver bank and payment bank (no need to select if option "Select bank account for Netpay based on employee's payment currency" in Organization structure is in use).

  2. When you've added the Payment details as shown in step 1, during a new calculation EC 994 Net Wages will automatically receive this info for payment into the Ref (Reference) field, you will see a folder sign there, which you can double-click or right-click to open Payroll Additional Info window and check. The amount from EC 994 will be included into the Payment list report (see next chapter) and bank file.

  3. If you are doing advance bank transfers, then when you create advance payment entry, you should also create payment reference information in Payroll Additional Info window, so that this transaction is included to the Advance list report (see next chapter) and bank file. In the same way, on the selected advance payment entry in Ref field double-click or right-click to create the Payroll Additional Info window.

  4. There you will be offered a selection options as to where take the payment receiver details (name and address).
    Personal Details > Payroll - copies name and address from employee Personal Details
    Alternative Receiver - copies name and address from Payroll > Payment > Alternative Receiver details. Used Alternative Receiver if you need to send money to someone else but the employee himself, e.g. relative.
    Previous Transaction - copies name and address from the previous transaction of the same Entry Code, even if it is in payroll history.
    Receiver details are fetched according to the option selected on step 4, but you can overwrite then anytime in this screen before you've made the payment.



  5. The other payment details are picked up from Payroll > Payment tab, but you can overwrite them as well in Payroll Additional Info window, for this transaction only and before you've made the payment, in case you need to send money to a second bank account of the employee or from a different company bank account. When you've checked the payment details, click ok to save. When you produce Advance list report (see next chapter) and bank file for advance payment, this payment will be included.



Produce ISO 20022 bank file

  1. When all the calculations have been done and you need to produce the bank file for payment, go to Payroll > Reports > Current period reports and run either Advance list (to give advance bank transfer, works only with Entry Codes defined with option "Advance entry code") or Payment list (NetPay bank transfer) report depending on your needs. On the report dialog form select the payment bank account (your company bank account) and preview.

  2. You will get an advance/payment list report listing each person netpay balance, name, rank, IBAN, receiver bank swift, etc. The balances from the report will be included into the bank file.

  3. When you close the advance/payment list report ISO 20022 export window appears.
    Payment Date - will be added into the bank file.
    Receiver Ref, Initiating Party Name, Bulk Reference, Regulatory Reporting code and info are free input fields, not mandatory, also further included to the bank file.
    Include Beneficiary Address Data - appears only for Credit Suisse type bank file to be excluded or included, with other bank formats beneficiary data is included into the file according to the bank specification.
    Express - set "urgent" code for payment processing in the bank file.
    Pay Out In Company Currency - converts all amounts in the bank file from person's payment currency into company currency (if different)
    Transaction Costs - defines in the bank file who is paying bank charges for transaction costs. Creditor - Company, Debitor - Employee, Share - both.
    Filename to save - allows to select the path to the folder where the file will be saved, the path is remembered by the system and will remain the same each time you run advance/payment list and ISO 20022 export. The file name by default receives date and time stamp.




    When file is exported successfully, you get an information message about it.

  4. We implemented ISO 20022 bank format validity check, so after the export, you get a Validity check report saying what PINs and what mandatory information is missing. If you get this report, most likely the bank file will be rejected without these data, you need to go back and add the missing details, recalculated the persons in question and generate the advance/payment list report and ISO 20022 export again to get the updated file.

  5. No matter is validity check report appears or not, then you will receive a Telepay report, which gives you information on how many SEPA and International payment type persons are included in the bank file and what amount goes by each payment type.