Managing Direct Debits

Managing Direct Debits

Direct Debit Processing Rules

Direct Debits will be selected for processing based on the following criteria:
An account will be debited if:
  1. the next date is within period specified, or
  2. if the next date has not been entered, the standard date is within the period specified. 
The amount to be debited will be:
  1. the schedule amount, if no Direct Debit schedule exists then
  2. the next amount ,or, 
  3. if the next amount has not been specified, the standard amount
If the account is at an end, and the account balance (current plus future) is less than the next amount, or less than the standard amount and no next amount is entered:
  1. the amount of the account balance will be direct debited, regardless of the standard amount. This should bring the account to a zero balance.
An account will be direct debited until the current balance plus the future balance are zero.  

There are circumstances where a Direct Debit is to continue, even if the current and future balances are zero.  In this case the Direct Debit Zero Balance should be ticked on to keep the Direct Debit going.

If an account has the Suspend Direct Debit Checkbox checked on, the Direct Debit will not be included for processing

The Direct Debit Details dialog is shown below:


Setting up the first Direct Debit

Field
Explanation
Next Date
Enter the date of the first Direct Debit
Next Amount
Leave Blank
Use Instalment Schedule
Lease and Fixed Loan Only

Check on if the instalment schedule is to be used

If this option is checked, the fields from standard date to standard amount will be disabled, as these details will come from the Instalment Schedule

If an Account Automatic Payment has been set up to charge a regular fee, this will NOT be recovered from the direct debit using the Instalment Schedule method
Standard Date
Enter the date of the first Direct Debit
Frequency
Select the Frequency of the Direct Debits

This will usually be the same as the instalment frequency
Day
Enter the day of the month the Direct Debit will be taken, if the frequency is either monthly or quarterly  
Standard Amount
Enter the standard amount of the Direct Debit
Bank Account
Enter the clients bank account

Amending Direct Debit

FieldExplanation
To Direct Debit the Total Arrears AmountEnter the date that the Direct Debit is to be taken to the next date field

The amount taken will default to the current balance on that date

The Next Amount and Standard Amount fields should be 0.00
To Direct Debit a Partial Arrears AmountEnter the date that the Direct Debit is to be taken to the next date field

Enter the amount of the Direct Debit to the next amount
To Create a Scheduled Arrangement of Direct Debit Repayments
Access the  button and establish the required repayment schedule

Note: This function can only be accessed if the next amount is 0.00 and the Use Instalment Schedule Checkbox is checked off
To Direct Debit an Early Terminated Account
Rules are the same as the Direct Debit Total Arrears Amount
To Direct Debit an ad hoc repayment
Enter the date that the Direct Debit is to be taken to the next date field

Enter the amount of the Direct Debit to the next amount
To Suspend a Direct Debit
Check the suspend Direct Debit checkbox
To Change the Bank AccountDelete the bank account number, and enter the new one
To Change the Direct Debit FrequencyChange the selected frequency option

Change the Standard amount to the new amount

Ensure that the standard date is the correct next payment date

Ensure that the day is entered if the frequency is monthly or quarterly

Note: These details cannot be changed if the Use Instalment Schedule is checked on

Note: The Next Date and Next Amount values are updated to the standard values/instalment schedule by the system once the Direct Debit has posted. These do not need to be amended manually.

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