Combining Direct Debits with Recurring Sales Invoicing

One of the options in NAV is that you can combine direct debit with recurring sales invoicing.

For more information on how to setup and work with Direct Debit Collections, please refer to one of my previous article here.

Setup

Standard Sales Codes

Let us say for example you have an agreement with a customer that you do a monthly maintenance and the customer will pay the maintenance with direct debit.

You can do this based on standard sales codes. For example, in this case we have setup a standard sales code for maintenance where the currency is in Euro and we have specified that this code is based on resource Mark, where he is performing 8 hours of work.

Customer Card

Now this sales code will be assigned to customers who are interested to use our maintenance services. So, open the customer card (for Libros S.A) and click on Std. Cust. Sales Codes. What you will see is that you can combine this with direct debit information.

So now you can Create Recurring Sales Invoices.

Process

Create Recurring Sales Invoices

Click Departments/Financial Management/Receivables/Create Recurring Sales Invoices.

Fill in the fields on the Create Recurring Sales Invoices window and click OK.

System will create invoices.

Open the sales invoice created. You will notice that NAV created a sales invoice in which you are invoicing 8 hours of Mark as maintenance expenses.

Also, on the Invoicing tab, you will notice that Payment Method Code and Direct Debit Mandate ID are automatically populated, which means that in your next direct debit collection run (once the invoice is posted of course), the system will retrieve the invoice and offer it to the bank in order to get the payments using the SEPA direct Debits.

So you see that it could be interesting to combine the recurring invoicing. In this example it is October 2018, we will run it for November 2018, and so on.

In this way you can prevent manual data entry by using standard sales quotes, assign them to customers in combination with direct debit, so that the complete process can be managed automatically.

About Paresh Sharma

https://au.linkedin.com/in/itspareshsharma

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