Managing Payable Accounts who are paid by Automatic Payment & Direct Debit

Overview

Where you have Payable Accounts that are paid by Direct Debit or Automatic Payment, it's crucial to exclude invoices for these Payable Accounts from your batch of payments to avoid the possibility of double paying. You can do this by flagging these Payable Accounts with the Payment Type of Direct Debit or Automatic Payment. Your other Payable accounts will have the Payment Type of Payable Invoice.

Then, when you are working through the Manage/Pay Accounts to approve invoices for payment, the system will create one entry on the Cash Book Quick Analyse screen for all standard Payable Invoice suppliers, and individual entries will be created for each Direct Debit or Automatic Payment account that has approved invoices to pay. When the payment appears on the bank statement, it can then be analysed.

Set an Account Payable to be paid by Direct Debit or Automatic Payment

• From the Payables > Supplier Accounts menu, select the first Payable Account that you want to edit.
• In the Additional details section, in the Payment Type field, select the option Direct Debit or Automatic Payment from the dropdown list, and then click Save and close.
• Repeat for other Payable Accounts in this category.

In this example, we've marked our payable account called Supplier Number One as the Payment Type of Automatic Payment.

Approve and Pay Invoices

Now we'll approve and pay the invoices that are due for payment, and show you how the system separates the payments for the standard Payment Type of Payable Invoice and those for the Payment Type of Automatic Payment & direct Debit.

In the Payables > Manage / Pay Accounts menu, we can select the suppliers and specific invoices that we want to pay. In this example, we can see that there is an amount to pay for our supplier called Supplier Number One, who is set up as Payment Type of Automatic Payment. The other suppliers are all set as Payment Type of Payable Invoice.

• Now that we've selected who to pay, click Pay all in list.

In this example, the total of approved invoices to pay is $13.133.00. This includes an amount for Supplier Number One who has been set as Payment Type of Automatic Payment.

Then in the Confirm Pay (Create Cash Book Transaction) pop-up window, the message advises that separate transactions will be created for Direct Debit or Automatic Payment accounts.

• Click Yes to confirm.

Cash Book Views

This now takes us to the Cash Book transactions screen, where we can see that only the payments for the suppliers whose Payment Type is Payable Invoices are appearing here, with a total in this example of $10,872.10. The amount for our supplier called Supplier Number One for $2.260.90 is not included.

• Now we can go to the Cash Book > Quick Analyse menu, and check in the Non presented transactions section lower down in the screen.

There is one transaction for the Automatic Payment item of $2,260.90, and one transaction for the combined amounts for the Payable Invoice type payments of $10.872.10.

When the automatic payments and direct debits appear on the bank statement that is imported, we can then analyse those transactions to the correct payments.

Using these two Payment Types of automatic Payment and Direct Debit allow you to accurately record the payments for these suppliers and ensure that they are not accidentally included in your payment batches, thus avoiding any possibility of double payments.

Return to Top of Page