27 Process Automatic Debits

This chapter contains the topic:

• Section 27.1, "Processing Automatic Debits."

27.1 Processing Automatic Debits

Navigation

From Accounts Receivable (G03), choose Manual Receipts Entry

From Manual Receipts Entry (G0312), choose Other Receipts Entry Methods

From Other Invoice & Receipts Entry Methods (G03111), choose an option under the Automatic Debiting heading

You can use the automatic debit process to automatically debit (that is, withdraw funds from) a customer's bank account. When you use the automatic debit process, you can:

• Identify those customers who have agreed to the automatic debit process

• Select the customers' invoices that are due

• Update customers' accounts after collecting the appropriate funds

27.1.1 Before You Begin

• Contact the bank to acquire the software package they use to transfer files electronically. You can also customize the Copy to Tape program (P03579) to copy transfer information to a PC document. You can then use the bank's PC software to communicate directly with the bank.

• On Customer Master Information, specify A (Automatic Debits, Accounts Receivable only) in the Payment Instrument field and Y in the Automatic Cash Algorithm field. See Entering Customers in the JD Edwards World Accounts Receivable Guide.

• On Customer Master Information, verify the customer G/L bank account information. Your customers must have a bank account type D set up for automatic debits. See Setting Up Customer Bank Information in the JD Edwards World Accounts Receivable Guide.

• On A/R Constants, specify Y in the Automatic Cash field. See Set Up A/R Constants in the JD Edwards World Accounts Receivable Guide.

Run the Automatic Debiting program to process automatic debits. You can use proof or final mode to select A/R invoices that are subject to payment by direct debiting.

Mode	Explanation
Proof mode	When you choose proof mode, the program: Prints a report showing the selection of invoices that will be included in the automatic debit process Does not update the A/R Ledger file Optionally, you can exclude invoices from automatic debiting using Speed Status Change.
Final mode	When you choose final mode, the program: Updates the selected invoices as paid Creates a batch to post receipts to the Account Ledger file (F0911) Prints a final report of processed invoices Creates a diskette file for the bank in the French format (F03575F) You can use a processing option to print a customer statement of those invoices that are debited.

Note:

When you run the Automatic Debiting program to process French automatic debits, you must specify program number P03575FD in processing option 10. This program generates a bank file (F03575F) that corresponds to the French banking standards for automatic debits.

After you process automatic debits, you can review and approve them before posting them to the general ledger.

27.1.2 What You Should Know About

Action	Explanation
Running the Automatic Debiting program twice	The system prevents you from running the same version of the Automatic Debiting program until you copy the tables that were created by the version to diskette. This protects the information from being overwritten by a new version before it is saved.
Adjusting the entries in an automatic debit batch	After you run the Automatic Debiting program in final mode, you can use the standard Cash Receipts program to: Reverse, void, or identify as non-sufficient funds (NSF) a transaction after the automatic debit batch has been posted Delete a transaction from an automatic debit batch before posting

See Also:

• Reviewing and Approving Invoices in the JD Edwards World Accounts Receivable Guide,

• Post Invoices in the JD Edwards World Accounts Receivable Guide.

27.1.3 Processing Options

See Section 35.8, "Automatic Debiting Build (P03575)."

27.1.3.1 Data Selection for Processing Automatic Debits

J.D. Edwards recommends that you process automatic debits by company. The receipts that are applied to the selected invoices are generated for the G/L bank account of the company.