Direct debit process

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Direct debit is a process where a company (as a creditor) collects payments from a debtor's bank account with their prior authorization (known as a direct debit mandate). It is usually used for recurring payments like utility bills, installment payments, rent, and subscriptions or memberships.

1C:Drive supports the following steps of the direct debit process:

1. Register direct debit mandate.
2. Optional: Set direct debit payment method for customers. This allows to automatically fill in this method in sales invoices.
3. Create sales invoices with direct debit payment method.
4. Create direct debit documents.
5. Receive payments from customers.
6. Monitor payments from customers.

Registering direct debit mandate

When a direct debit mandate is received from a customer, register its details in the Direct debit mandates catalog. For details, see Creating direct debit mandates. Ensure that you specify the mandate validity period and set the mandate status to Active. With this status, the mandate is applicable for generating direct debits within the specified validity period. So, now the mandate is ready for use.

Setting direct debit payment method for customers

This is an optional step of the direct debit process. It saves time on filling in payment method and other payment terms in a customer's sales invoices.

You can set the direct debit method in a customer's billing details. Then, when you create a sales invoice for this customer, Payment method will be automatically set to Direct debit on the sales invoice's Payment terms tab.

To set the direct debit method in a customer's billing details:

1. Go to Sales.
2. Under Catalogs, click Customers.
3. In the Customers catalog, double-click a customer line and do one of the following:
   • If available, open the Billing details tab.
   • In the link bar, click Contracts, double-click a contract line, and then open the Billing tab.
4. Click the payment terms link above the Limits section.
5. In the Payment method field, select Direct debit.
6. Fill in other payment terms as necessary and click OK.

Creating sales invoices with direct debit payment method

When you need to invoice a customer that agreed on direct debit, create a sales invoice. In the sales invoice, ensure that you do the following:

1. Set Invoice type to Invoice.
2. On the Payment terms tab:
   • In the Payment method field, select Direct debit.
   • In the Mandate field, select a direct debit mandate with the Active status.

When you create a direct debit document for the sales invoice, you will be able to quickly find the sales invoice by the specified mandate.

Creating direct debit documents

When you need to collect a direct debit payment for a sales invoice, create a direct debit document. Use one of the following options:

It is recommended to use the first two options instead of creating a direct debit document from scratch manually.

The created direct debit document does not post any accounting entries. It only records a request for payment. You will need to record the payment separately. For details, see Receiving payments.

Receiving payments from customers

When you receive a direct debit payment, register it by creating a payment document such as bank receipt or cash receipt with the Payment from customer operation. Create the payment document based on the source sales invoice. This will save time on data input and ensure traceability of your sales transaction.

Monitoring payments from customers

To monitor direct debit payments (like any other payments from customers), use the Customer balance report. To generate it:

1. Go to Sales.
2. Under Reports, click Customer balance.
3. Specify the report settings.
4. Click Generate.

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