Standing orders and direct debits
If you make regular payments or receive money via direct debits or standing orders you can record these within Sage 200. These can include
- Payments to suppliers
- Receipts from customers
- Payments of bills such as rent and rates, or utility bills.
This is a two step process in which you first create a record of the regular payment being made to you. The record contains the details of:
- The type of payment being made.
- The amount, frequency and dates of payments.
- The customer or supplier or nominal account, when appropriate
On a regular basis you need to post the payments to your accounts. When posting regular payments to your accounts you specify the period over which transactions are to be posted. So, for example, you could choose a six month period and post all payments that fall due within that period.
You can set up a record within Sage 200 so that it either posts only to a bank account and nominal accounts or posts to a bank account, nominal accounts and a supplier or customer account. to do this you need to:
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Set up the standing order / direct debit so that they are processed regularly at a time that you specify. This is usually done monthly or quarterly, but you can also set it up so that occurs every few days.
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Process standing orders and direct debit. This processes all direct debits / standing orders up to a specified date. he transactions If a standing order or direct debit is set to be paid on a weekend or on the 31st of the month when there is no 31st day in the month, this system will automatically calculate the next banking day.
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View standing orders and direct debits using the standing orders and direct debits enquiry.
When Sage 200 will stop you setting up direct debits and standing orders
There are some rules around direct debits and standing orders that cannot be broken; keep them in mind when you are setting them up:
- You can't set up direct debits or standing orders for foreign currency customer or suppliers accounts.
- Both the bank account and the customer / supplier must use your base currency.
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You can't set up a new direct debit / standing order if the supplier or customer account is On Hold.
Existing direct debits and standing orders will continue to be processed and posted for accounts On Hold.
Linking regular payments and receipts to invoices
Standing orders and direct debits have no link to invoices in Sage 200. When you have posted the standing order / direct debit, you still allocate them to outstanding invoices.
Lucy takes an order from one of her customers who wants a weekly delivery of parts and would like to pay a set amount each month by direct debit.
To support the regular payment Lucy sets up a direct debit record for the agreed amount. She also processes the direct debit on a regular basis so that the payment transactions are posted to the relevant bank account.
Each week she creates an invoice for the parts being delivered to the customer that week and each month assists with the bank reconciliation process and signs to say her customer's payments have been reconciled.
The tasks that are performed in this scenario:
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Create a direct debit record.
This setup task is performed only once per direct debit / standing order record.
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Process the direct debit record.
When you process and post direct debit transactions you specify the period of time to be covered. The frequency you need to process direct debits is determined by the period of time you cover each time you run the process direct debit feature.
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Raise an invoice for each of the deliveries being despatched.
As the customer is having a weekly delivery an invoice is produced every week.
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Allocate payments you have received to the invoices.
This task is performed on a monthly basis to match the monthly payment with the invoices that were raised during the month.
Reporting on direct debits and standing orders
- Use the Standing Orders and Direct debits Enquiry to see a list of the SO and DD for each bank account with the payment details ( Bank Account List > Enquiries). You can also see this information in a workspace ( Cash Book > Cash book Enquiries).
- Use the Direct debits and Standing Orders Due report (Cash Book > Reports) to find the outstanding value of SO and DD. Useful for working out your committed costs.
- Use the Direct debits and standing orders report for full printed details of SO and DDs.
Questions
Are SO and DD included in the value of committed costs?
Direct debits and standing orders are not included as part of your committed costs. However, you can use the Direct debits and Standing Orders Due report (Cash Book > Bank Account reports) to see the value of your outstanding direct debits and standing orders.
Are SO and DD processes automatically?
No. You must choose to process them via the Process standing orders and direct debits screen (Cash Book > Standing orders and direct debits.