Manage Debit Orders Tutorial

Overview#

A Debit Order is an arrangement with a bank or financial institution. It lets a business or service provider automatically deduct a set amount of money from a customer’s bank account at regular intervals. This process is typically used for recurring payments, such as monthly bills, loan repayments or subscription fees.

When a customer authorises a debit order, they grant permission for the service provider to withdraw funds directly, simplifying the payment process and ensuring payments are made on time.

💡These tutorials explain how to set up the accounting records to manage debit orders and how to enter the debit order transactions.

How to Enter Debit Order Customer Receipts Manually#

1. Navigate to Main Menu > Accounting > Ledger.
2. If it is the first time you are entering the receipts:
   1. Click New (button) > Customer Transactions > Debit Order Customer Receipts.
   2. Enter Customer Receipts as per normal.
   3. Check the Recurring checkbox.
3. If the Receipts are already entered:
   1. Navigate to Main Menu > Accounting > Ledger.
   2. Click Menu (button) > Open Recurring Transactions.
   3. Click the small filter icon next to Entry Type and select Debit Order Customer Receipts.
   4. Repeat the following steps until all the transactions are recorded:
      1. Right-click the transaction and select Copy to Ledger.
      2. Amount = Change the amount, if necessary.
      3. Allocate the Receipt to the correct Invoices.
   5. Add in any new receipts as per Step 2.

How to Enter Unpaid Debit Orders#

1. Navigate to the Main Menu > Accounting > Ledger.
2. Select Filter = Transactions.
3. Select Entry Type = Debit Order Customer Receipts.
4. Select the Date for the most recent debit order entries.
5. Click View (button).
6. Double-click to open the Receipt:
   1. Change the Status to Pending.
   2. Clear the Allocations.
   3. Change the amount to zero.
   4. Enter a Note that the debit order was unpaid.
   5. Set the Transaction Status to Cancelled.

How to Record the Receipt from the Debit Order Provider#

1. Navigate to Main Menu > Accounting > Ledger. 
2. Click New (button) > General Income.
3. Date and Period = Enter the date and period.
4. Select Dr. Bank = The Bank into which the income from your debit order provider was paid.
5. Select Cr. Bank = Debit Order Bank Account.
6. Total (Inc) = Enter the amount.
7. Select No VAT.
8. Reference and Note = Enter a reference and a note.
9. Click View (button) > Items to see how the entry is posted.
10. Click Done (button).

How to Record Debit Order Fees#

1. Navigate to the Main Menu > Accounting > Ledger.
2. Click New (button) > General Expenses.
3. Date and Period = Enter the date and period.
4. Select Dr. Account = Bank Charges (or similar).
5. Select Cr. Account = Debit Order Bank Account.
6. Total (Inc) = Enter the Amount.
7. Select the appropriate VAT option (see invoice from your debit order provider).
8. Reference and Note = Enter a reference and a note.
9. Click View (button) > Items to see how the entry is posted.
10. Click Done (button).

How to Select Outstanding Amounts for your Debit Order System#

1. Display the Customer Age Analysis (Main Menu > Accounting > Customer Age Analysis).
2. Click the small filter icon next to Terms and select Debit Order.
3. Select the Date (e.g. the This month or Last month).
4. Click View (button).
5. Depending on the arrangement you have with your customers, either the amount in the Current or Total columns is the amount to transfer to your debit order management system.