Prior to using direct debits, there is a small amount of configuration required. First, add a new payment type via Tools > Setups > Banking > Payment Type, making sure Debtors and Electronic Payments are both ticked.
Next, configure direct debit debtor payment options via Tools > Options > Banking as follows:
Field Name |
Description |
Direct Debit Default GL Acc. |
The default general ledger account to be used. This is typically a 1-XXXX asset cheque/bank account with Bank Info setup.
Note: Bank Info can be set up by Accounts > General Ledger, editing the GL account, and selecting Bank Info. |
Bypass Unbanked Funds |
Tick this option to bypass banking (unbanked funds) and bank the direct debit payments directly into the nominated bank account. It is suggested to untick this option if: ▪The invoice date does not match the direct debit date. For example, you process direct debit payments at the end of every week. ▪You wish to reconcile direct debit payments via banking prior to them hitting your bank account. |
Direct Debit Debtor Payment Type |
Select the payment type to use for direct debit payments. This is the payment type that will automatically be used by batch invoicing, and when doing a manual direct debit payment. Choices are Cheque or Electronic Payments. |
Further information: