Direct Debit Vendor Payments

In Vendor Payments, you create a vendor payment run to record the direct debit payments that your bank already made to pay vendors for AP vouchers.

Direct debits are electronic payments that your bank pays automatically at the request of your vendor. An example of this type of payment is a utility bill that is due every month. You give your bank permission to pay a certain vendor for the payments that the vendor requests from your bank. The payments are direct deposited to a vendor's bank account.

Prerequisites

Before you can process a direct debit vendor payment run in Cash Management > Vendor Payments, you need to complete the following actions.

Settings

You must complete settings for banks, vendors, the vendor payment template, and automatic payment numbering.

For more information, see: Setting Up Vendor Payments for Direct Debits.

AP Voucher Entry

When you enter AP vouchers in Transaction Center > Transaction Entry > AP Vouchers, if you want a voucher to be paid by a direct debit payment, you must select a bank for the voucher that has been set up to make direct debit payments, and the vendor for the voucher must be set up to receive direct debit payments.