> Cash Book / Standing orders and direct debits / Set up a standing order or direct debit

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.

Once set up direct debits and standing order

To set up a standing order or direct debit

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

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.
Click Add.

The New Standing Order/Direct Debit window appears.
Select the Posting type (sales receipt, purchase payment or nominal, taxable or non taxable, standing order or direct debit).

There may be differences to the boxes listed depending on the Posting type you select.
Select the trader or nominal account to assign the entry to.
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 Tax code to be used, if you have elected to record a taxable nominal receipt or payment.

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

For a direct debit specify the values.

Enter the Total amount to pay including the tax element, if applicable.
The first direct debit value is automatically calculated for you (include the tax element, if you have elected to record a taxable nominal payment or receipt).

Note: If you are recording a taxable nominal payment or receipt, you can edit the calculated values.
Enter the last direct debit value (include the tax element, if you have elected to record a taxable nominal payment or receipt).

For a standing order enter the regular values (include the tax element, if you have elected to record a taxable nominal payment or receipt).

The Cash Book calculates and displays the goods and tax values based on the regular value you have entered. You can amend the Goods value or Tax value and the Cash Book recalculates the values for you.