Overview 

A Debit Order is an arrangement with a bank or financial institution that allows a business or service provider to 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 block.

3. If the Receipts have been entered before:

   1. Navigate to Main Menu > Accounting > Ledger.

   2. Click Menu (button) > Open Recurring Transactions.

   3. Click the Soft Filter Icon next to Entry Type and select Debit Order Customer Receipts.

   4. Repeat the following steps until all the transactions have been recorded:

      1. Right click the transaction and select Copy to Ledger.

      2. 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. Type a Note that the debit order was unpaid.

   5. Set to 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. 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. Enter the amount next to Total (Inc).

7. Select No VAT.

8. Enter the Reference and Note in the sections provided.

9. Click View (button) > Items to see how the entry will be posted.

10. Click Done (button). 

How to Record Debit Order Fees

Once you have entered all the transactions as per this tutorial, the Debit Order Bank Account should have a zero balance.

1. Navigate to the Main Menu > Account > Ledger.

2. Click New (button) > General Expenses.

3. Enter the Date and Period.

4. Select Dr. Account = Bank Charges (or similar).

5. Select Cr. Account = Debit Order Bank Account.

6. Enter the Amount next to Total (Inc).

7. Select the appropriate VAT option (see invoice from your debit order provider).

8. Enter the Reference and Note in the sections provided.

9. Click View (button) > Items to see how the entry will be 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 Soft 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 will be the amount to transfer to your debit order management system.