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Automatic payments

You can pay creditor invoices automatically. You generate a payment order, preparing an electronic payment file (in SEPA format). You send this payment file to the bank. The outstanding items in the payment file are automatically written off.

The SEPA (Single Euro Payments Area) payment format, or SEPA Credit Transfer, is mandatory as from 1 August 2014. With a SEPA payment order, you can perform digital payments in euros within the SEPA countries.

Often the bank will (have to) perform an extra check on the first SEPA payments. Follow the bank's instructions for delivering SEPA files.

Video

Description

If you want satisfied suppliers then you need to pay them on time. This means that you pay the invoices before (or on) their due date. By paying the invoices automatically, you set up the payment behaviour in the correct way and you specify the time of payment.

When compiling the payment file, you use a suspense account, namely the ledger account Payments in transit. You link this ledger account in the properties of a bank account number. When you generate the payment file, you immediately write off the outstanding items from the creditors and credit this suspense account. When you process the bank statement with the payment, you also post the amount paid to the suspense account Betalingen onderweg (but now as debit) so that the suspense account is once again balanced.

Journal entry of generating the payment file

Account

Debit

Credit

Creditors

-,--

 

To suspense account Payments in progress

 

-,--

Journal entry when processing the bank statement

Account

Debit

Credit

Payments in transit suspense account

-,--

 

To bank

 

-,--

You can also make payments to international bank account numbers.

Preparation

Procedure

Also see

Process

Automatic payments