Direct Debit Return Processing

365 business Banking recognizes returned direct debits in the payment reconciliation journal, reopens the invoice and records the bank fee.

Business Value

Direct debits can be returned for various reasons, such as insufficient account funds, invalid account information, or payment disputes. Correct processing of direct debit returns is important for cash flow, customer relationships, and the accuracy of financial reports. Direct debit returns cause additional fees and administrative effort. Automated processing simplifies the procedure, reduces errors, and shortens processing time.

Feature Description

• During retrieval, 365 business Banking recognizes a returned direct debit by the bank's business transaction codes and bank transaction codes or by your creditor identifier.
• Apply Automatically assigns the returned direct debit to the original direct debit through the end-to-end reference or the mandate reference. If the assignment is not unique, you select the direct debit manually with Assign Returned Direct Debit.
• On posting, the application between direct debit and invoice is undone. The invoice is then open again.
• If the bank reports the return and the fee as one transaction, 365 business Banking splits the fee off into a separate line. With reconciliation rules, you post it automatically to the appropriate general ledger account.

Details: Process returned direct debits