Configure a debtor for automatic collection

You define per debtor whether you want to collect any outstanding items automatically. In this, you also specify whether you want to collect from the debtor on a recurring or one-off basis. If you want to collect more than once, you specify which SEPA collection method (default or B2B) is applicable. In addition, you set the correct payment condition for the debtor if you want to collect invoices in instalments.

You can occasionally deviate from this setting in the properties of the outstanding items to be collected (invoices). However, you cannot deviate from the SEPA collection method (Default or B2B) at the product or invoice level. The preferred SEPA collection method Default or B2b apply per debtor for all invoices.

For debtors with automatic collection, Profit automatically collects every outstanding item. However, you can exclude specific outstanding items from automatic collection.
For debtors for which automatic collection has not been set up, Profit will not collect any of the outstanding items. For specific outstanding items you can, however, specify that you want them included in an automatic collection order.

How long does a debit mandate remain valid?

A debit mandate is valid for as long as you agree upon with the debtor. However, a mandate that has not been used for more than 36 months for the delivery of a collection order is deactivated automatically. You can find more information on this in the topic on viewing a debit mandate.

Note:

You can collect from a debtor from multiple administrations. In that case a debit mandate must be present in each of these administrations. This is because you record the Collector ID in Profit at administration level. When you select the Automatically collect box check for the debtor, Profit creates one empty mandate for all administrations in which the Collector ID is entered and for which the collection file format for the administration bank account number is set to SEPA Direct Debits.
You can add multiple debit mandates per debtor and even per bank account number, if necessary.
You can also record a debit mandate for a debtor for whom the Automatically collect check box is not selected. This can be required, for example, if you do not want to collect all invoices automatically, but only the invoices for Subscriptions (for which a check box is available in the subscription).

To configure debtor settings and a debit mandate for automatic collection:

Go to: Financial / Debtor / Debtor.
Open the properties of the debtor.
Go to the tab: Bank account.
Check that the bank account number you want to use for collection has been recorded. For SEPA collections, this must be an IBAN number.

If the registration/city of the bank account number differs from the registration/city of the debtor, you record this in the bank account number properties.

You can add multiple bank account numbers to a debtor/sales contact. On the Payment tab, one bank account number is always set as the preferred account.
Go to the tab: Payment.
Select the preferred bank account number you want to collect the amounts from in Bank account.
Select the Automatically collect check box.
Profit asks you if you also want to collect items that have already been recorded.

If so, then Profit will select the Collection check box for all outstanding items, which allows you to also include these items in a collection order. Profit uses the One-off direct debit mandate required setting for the invoices already present and creates a mandate for each invoice if this setting has been selected.
Do not select the Compress check box.
Outstanding items for the debtor are collected separately. As a consequence, it is not possible to settle credit notes.
Only select the One-off direct debit mandate required check box if a one-off mandate for this debtor is required per invoice. You then have to specify a debit mandate per invoice.
With SEPA collection orders, the distinction between one-off and continuous collection is important:
- For recurrent collection, you only select the Automatically collect check box and do not select the One-off direct debit mandate required check box.
  If you record this setting for the debtor then, afterwards, you need to record mandate data for this debtor using Debtor debit mandates.
- For one-off collection, you select both the Automatically collect check box and the One-off direct debit mandate required check box.
  If you record this setting for the debtor, you then have to record the data of the debit mandate per invoice. Profit automatically creates a debit mandate per invoice when you create an invoice for this debtor. In this case, you have to record the debit mandate date for this invoice using the Invoice collection mandates view.
Profit automatically enters Default in SEPA collection method for both continuous and one-off collections from a debtor. This collection method offers those being collected from good protection, including a refund right of eight weeks (56 calendar days).
Change the collection method to B2b in SEPA collection method, if you want to collect from this debtor continuously and a 'Business' collection method applies to this debtor. This collection method does not provide right of refunding but it has more requirements for debit mandates. This debit mandate must be registered by those being collected from, with their own bank. For business collection transactions, the debit bank (the bank of the one being collected from or the bank of the debtor) can therefore check if the collector is authorised and will not carry out the collection transaction if this is not so. This check provides a guarantee against wrongful use of the business collection method which is not present for the default collection method.

Profit does not support the combination collection method B2b and one-off collection. The collector cannot check if the mandate is registered at the debtor's bank and thus no longer has certainty in a situation where the debtor himself promises to pay the invoice amount. With recurrent collection there is an intention to start a relationship between the collector and the debtor and it is expected that the B2B collection method may be advantageous to the collector.
Go to the tab: Debtor.
Select the debtor's payment condition. The payment condition is used to calculate the due date of the invoices.
Select a payment condition of the type Payment instalments if you want to collect this debtor's invoices in installments.
Go to the tab: Collection mandate.

You see that Profit has automatically added a debit mandate. The Debit mandate date of this debit mandate is empty and the Mandate status is To be signed.

You provide the debtor with the mandate form by e-mailing or printing it. When the debtor returns it, you record the mandate date in the properties of the debit mandate.

The collection order does not include invoices from this debtor as long as the Debit mandate date has not been entered.
Open the properties of the debit mandate (double-click) if you want to view or change the debit mandate.
You can add multiple debit mandates per debtor, if necessary.
Click on: OK.