Direct Debits

Direct debits are a contractual method for collecting payment and receipts. You and your supplier set up a contract that enables the supplier to collect an amount due for specific goods or services directly from your bank through EFT. Some banks require a cover letter for the EFT files that they receive. The direct debit is entered as a manual payment in PeopleSoft Payables. Once you create the manual payment, you can run the payment posting process to create the accounting entries, then run the Journal Generator process to pass the accounting entries to the general ledger.