1. Activate the SEPA Direct Debit option in the configuration of the accounting application and fill in your creditor identifier.

2. Make sure to have valid bank accounts set on your bank journal and on the contacts for which you want to use SDD.

3. Create new Direct Debit Mandates (via Accounting > customers > Direct Debit Mandates). You must fill in the mandatory fields: customer and their IBAN account, journal, SDD Scheme and start date. You will then need to print and send the mandate to the client who will sign it (can be done via the Odoo chatter). Once it’s done, you can attach the signed mandate in the chatter and validate the mandate. At any time, you are able to close or revoke this mandate.

4. Create a new customer invoice. 

Tips: to differentiate the invoices that have to be paid through SEPA and those that don't, you can create new terms of payment “Domiciliation” or “SDD”. Use this term of payment on the invoices that need to be paid automatically. You can also assign a default term of payment on the contact form. Note that having this new payment terms is only useful if you need to invoice a same customer both with SDD or regular payment depending on the type of invoice.

5. On the invoice, click on “Register Payment” and choose SEPA Direct Debit as payment method.

To register a payment for multiple invoices at the same time, filter on the unpaid invoices which have payment terms as “Domiciliation”. If you do not use the new payment term as explained on point 4, you can also filter based on "SDD Mandate". Select all the invoices, click on action > register payment and choose SEPA Direct Debit as Payment method.

6. The last step is to generate the XML file to be sent to the bank institution. Go in the payments via customers > Payments.

In that view, you can filter on the SDD payments to collect.

Select the SDD payments and create a batch payment and validate it. An XML file is generated automatically. It will be accessible in the tab Exported file.

Once the payment is executed, the last step is to reconcile the payment with the batch payment to mark the invoices as “Paid”

7. On the SDD mandate, you are able to follow the invoices and the payments that were made using this mandate.