Direct debits

When creating an invoice, you can choose to collect the invoiced amount with direct debit. If you choose this, an invoice will be sent to notify the relation of the collection.

To collect an invoiced amount with direct debit, you will need to carry out several actions. This element explains which actions are required to collect with direct debit.

In a nutshell, for each direct debit invoice, the system will generate an outstanding item. All outstanding items together (of multiple invoices) can then be combined into a collection order. You can upload this file to your online banking environment, where the collection will be executed.

Requirements

In addition to a direct debit mandate from the relation, you also need a direct debit contract with the bank. A direct debit contract is the agreement between the bank and the community about executing direct debit. If you have a direct debit contract, you will also have the following information:

• Creditor ID – This is a unique code to identify the entity executing the direct debit: the creditor. You will receive this ID from the bank when you enter into a contract. You can enter this number in Settings – Administration.
• Access to software to execute the direct debit. This is usually the general online banking environment of the bank. Ask your bank if you are unsure.

Elements

When you click on ‘Direct debits’ in the Financial tree, you will see a screen with three tabs:

• Mandates
• Outstanding items
• Batches