Set up a standing order or direct debit

You can use a direct debit to spread a total payment value over a set number of periods. Standing orders are used to record regular payments where the overall duration of the term is unknown.

To set up a standing order or direct debit

Open: Cash Book > Standing Orders and Direct Debits > Maintain Standing Orders and Direct Debits.

1. Select the bank account you want to record a standing order or direct debit to.

   Note: You can only use a foreign bank account if you intend to process nominal standing orders and direct debits.

2. Click Add.

   The New Standing Order/Direct Debit window appears.

3. Select the Posting type (sales receipt, purchase payment or nominal, vatable or non vatable, standing order or direct debit).

   There may be differences to the boxes listed depending on the Posting type you select.

4. Select the trader or nominal account to assign the entry to.

5. Specify the entry details.

   • Enter a narrative Description.
   • Assign references.

   • Enter the Transaction analysis code.

     Note: Transaction analysis codes are available if you have enabled additional transactional analysis in the Accounting System Manager settings.

   • Enter the First payment date.
   • Enter the No. of Payments (the number of times you want the direct debit or standing order to recur between 3 and 999).
   • Enter the required Frequency of payment (Monthly, Quarterly or Other). For a frequency of Monthly or Quarterly, enter the day of the month you want the entry made. If the frequency is Other, specify the number of Days between payments.

   • Select the VAT code to be used, if you are recording a vatable nominal receipt or payment.

     The Cash Book automatically calculates the VAT period for you when you elect to record a vatable nominal payment or receipt. This VAT period is used to add the entry to your VAT Return.

6. For a direct debit:

   • Enter the Total amount to pay including the VAT element, if applicable.

   • The first direct debit value is automatically calculated for you. Remember to include the VAT element, if you are recording a vatable nominal payment or receipt.

     Note: If you are recording a vatable nominal payment or receipt, you can edit the calculated values.

   • Enter the last direct debit value. Remember to include the VAT element, if you are recording a vatable nominal payment or receipt.

7. For a standing order:

   • Enter the Recurring value. Remember to include the VAT element, if you are recording a vatable nominal payment or receipt.

   • If you're entering a nominal payment or receipt, the Goods amount and VAT amount are calculated from the Recurring value you enter, and are recalculated if you change the Recurring value.