Also in the Direct Debit Resource Centre:
AUDDIS & Migration
AUDDIS is the Automated Direct Debit Instruction Service. It is generally considered to now be best practice for setting up direct debits with the bank and is now mandatory for new Service Users that submit direct to Bacs.
Using AUDDIS offers a number of benefits:
Lower cost to process
DDI easier to identify
Significant reduction in unpaids
Eliminates paper from the system
Better service quality
Improved image of scheme
One off Direct Debits allowed
The reference used in a Direct Debit Instruction (DDI) may be up to 18 characters long and must be a minimum of 6 characters. It must be lodged with the paying banks exactly as it appears on a signed DDI. It must be unique for the sort code, account number and SUN to ensure that the paying banks can accurately match Direct Debits to DDIs.
Collections from an AUDDIS Direct Debit Instruction must contain the ‘core reference’ and may also contain a variable element, identifying that particular claim. (The variable element is as added to the end of the reference i.e. a suffix not a prefix).
AUDDIS Transaction Codes
New Direct Debit Instruction (DDI) details must be stored for AUDDIS submission. Should you choose to send cancellation advises, then cancelled DDI details must also be stored for AUDDIS submission. Each data record is a lodgement or cancellation that a Service User wishes to make. Submissions must have an AUDDIS transaction code allocated to it:
|Transaction Code||Details||Mandatory / Optional|
|0N (zero N)||For a new DDI, or to re-instate a payer or Service User cancelled DDI.||Mandatory|
|0C (zero C)||To cancel an existing Direct Debit Instruction at the paying bank.||Optional|
|0S (zero S)||To convert an existing non-AUDDIS Direct Debit Instruction to AUDDIS. Only used at time of migration||Mandatory|
|0C/0N (zero C /zero N)||To amend a direct debit instruction these may be sent in the same file. (Rule: this pair of codes should not be sent on receipt of an ADDACS report)||Optional|
AUDDIS File (Submission)
As with your collection process, the AUDDIS cycle is based on Bacs’ three-day cycle. As the advises have no financial value (£0.00 value), AUDDIS files are processed on receipt by Bacs, regardless of any processing date allocated in the file submitted.
All Bacs advises are processed on a 3-day cycle.
Day 1Input Day
Service Users / bureau submit their files for Bacs processing before 10.30pm. On receipt, the Bacs system validates file and advice formats. Overnight, Bacs processes the AUDDIS advises.
Day 2Processing Day
In the morning, files are sent to the member banks. Overnight, the banks process the AUDDIS advises.
Day 3Entry Day
Advises that cannot be processed are returned to Bacs with an appropriate reason code. AUDDIS advises passing bank validation are applied to the bank accounts. Invalid DDI's are returned to Bacs for overnight processing by Bacs.
Day 4 / 5Lodgement Failures
Bank Returned AUDDIS Advice Reports are available for service users to process.
AUDDIS File (Timescales)
Service Users have the opportunity sign-up payers whenever they wish and make collections on every working day of the year under the rules of the Direct Debit scheme. However, processing times and reconciling efficiently, along with specific business needs, should all be considered when selecting dates.
There are firm timescales for lodgement, collections and reports under the direct debit scheme, making it possible for Service Users to achieve optimum timescales within their direct debit process. The level of automation a Service User is also a factor in the overall speed of a Service User’s direct debit process – from sign up to collections and reconciliation.
In terms of the best time frame to submit your AUDDIS file and then the collections file, Service Users MUST:
The Service User must allow at least 2 working days between lodgement and collection (mandatory)
The Service User should allow at least 5 days between lodgement and collection (best practice)
With the above in mind, its recommended to allow at least five working days between lodgement and collection, allowing time to reconcile AUDDIS reports that will occur up to two days after lodgement. This makes sense as ensures when it comes to submission of the collection file, it contains the least amount of errors.
AUDDIS Failures (Lodgement)
As with your collection processes, you will be notified by Bacs and the paying banks of any instructions that could not be processed. Your processes and systems must incorporate the retrieval and reconciliation of the AUDDIS related Bacs reports. AUDDIS lodgement failures occur at time of:
Submission when Bacs processes AUDDIS files, in the AUDDIS Input Report / AUDDIS Acceptance Advice
Lodgement when the banks process AUDDIS DDIs, in the Bank Returned AUDDIS Advice Report<
Bacs reports are accessed via the Payment Services Website or a Bacstel-IP application. On receipt of AUDDIS lodgement failures, Service Users need to reconcile reports immediately (within 3 working days) by updating the DDI status.
AUDDIS is a service that must be applied for by the Service User. Application forms are available from the sponsoring bank and should be completed and returned to the sponsoring bank. Note: A Service User may need to execute a new indemnity claim. In terms of application timescales, on average they are:
4 to 8 weeks
to obtain a new SUN – 4 to 8 weeks
Up to 12 weeks
to transfer and existing SUN to be AUDDIS enabled – up to 12 weeks
Existing SUNs must undertake a ‘migration’ project. We would highly recommend getting outside help if you are planning to implement AUDDIS as it is usually a one off task for an organisation it is critical to future collections that you get it right.
Reconciliation of failures
Registering of existing DDI's under AUDDIS (migration)
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