Answer
Lightning Payroll has two places where you can configure ISO 20022 pain.001 direct entry settings: a company-level tab that sets defaults for one company, and an app-wide tab in Settings that controls which pain.001 version is used across all companies.
Company-level pain.001 defaults
Go to Company >> Direct Entry. The tab shows a Direct Entry File Format drop-down with two options:
- ABA bank file (standard, recommended) - the default for Australian companies.
- ISO 20022 pain.001 (XML, only if your bank requires this) - required for New Zealand companies; optional for Australian companies whose bank explicitly requires XML payments.
New Zealand companies are fixed to pain.001 XML and cannot select ABA. When pain.001 is active, an ISO 20022 (pain.001) defaults section becomes visible with the following fields:
- Initiating Party Name - the company name written into the payment file header. Defaults to the company name from Company Details.
- Initiating Party ID - the identifier written into the header. Defaults to the company's IRD number (NZ) or ABN (AU) if the field is left blank.
- ID Scheme - the scheme code for the initiating party ID. Defaults to ACCIRD for New Zealand companies (Account IRD) and AUBN for Australian companies. Change this only if your bank instructs you to use a different scheme.
- Service Level Code - controls the urgency of the payment batch. Options are NURG (non-urgent, default), URGP (urgent), SDVA (same-day value), and SEPA (SEPA credit transfer). Most businesses should leave this as NURG.
- Category Purpose - describes the payment type. Options are SALA (salary/payroll, default), SUPP (supplier payment), TAXS (tax payment), PENS (pension payment), BONU (bonus payment), and INTC (intra-company payment). Leave as SALA for standard payroll direct entry.
- Creditor Country - the country code written for employee bank accounts. Defaults to NZ for New Zealand companies and AU for Australian companies.
These settings are stored per company, so each company file can have different defaults.
Online (web/mobile) app
Go to Company >> Direct Entry Settings. This page has the same Direct Entry File Format choice and, when pain.001 is active, the same Initiating Party Name, Initiating Party ID, ID Scheme, Service Level Code, Category Purpose, and Creditor Country fields described above. New Zealand companies see pain.001 fixed the same way as the desktop app. The app-wide pain.001 schema version below is desktop-only and does not have an online equivalent.
App-wide pain.001 version
Go to Settings >> Direct Entry. This tab sets the pain.001 schema version used when any company in this installation exports an ISO 20022 payment file. The two available versions are:
- pain.001.001.03 - the default, preferred by most Australian banks including Westpac and CBA.
- pain.001.001.06 - for banks that explicitly confirm they support NPP pain.001 upload for payroll.
Check with your bank before changing the version. If your bank has not told you to use pain.001.001.06, leave the setting as pain.001.001.03.
For more information on generating and regenerating direct entry banking files, see Why Does Direct Entry Export pain.001 XML Instead Of ABA, And How Do I Regenerate It?
