Direct Debit Process Flow

Perform the following tasks to create direct debits and send them to the bank for collection:

  1. Run the Create Direct Debits process (AR_DIRDEBIT) to create direct debits and build a worksheet.

    If direct debits are set up to require the creation, transmission, and reception of direct debit prenotes, the Create Direct Debit process creates prenotes. These prenotes must be sent to the customers bank and confirmed before the direct debit transactions associated with the prenotes can be processed.

  2. Approve, reject, or hold the direct debits using the direct debit worksheet.

  3. Change the direct debit's status to Remitted on the direct debit worksheet.

  4. Run the Receivables Update process (ARUPDATE) to post the direct debit groups, update the item and customer balances, update item activity, and generate accounting entries.

    WARNING:

    When running the Receivables Update process after the Create Direct Debits process, if the Direct Debit Group field is Direct Debit, on the Create Direct Debits page, then the calculation of the direct debit due date must be less than, or equal to, the Receivables Update process run date to close the direct debit. The calculation of the direct debit due date results from the option selected in the Due Date Option field of the Create Direct Debits run control page. If the calculation of the direct debit due date is greater than the Receivables Update process run date, then the direct debit is not closed.

  5. (Optional) Cancel direct debits that have a Remitted status, but have not been submitted to the bank.

    If you remit direct debits using the PeopleSoft Cash Management Financial Gateway option, you can cancel the direct debit after you send it to Financial Gateway if the dispatch status is Awaiting Dispatch, Hold, or Error.

    Note:

    You must run the Receivables Update process after you cancel a direct debit. Running this process reverses the accounting entries that the Receivables Update process created for the direct debit and reopens the items in the direct debit.

  6. Remit the direct debit to the bank by running either the Create EFT through FG System Application Engine process (AR_FG_PROC) or the Format EFT Files SQR process (FIN2025).

    Note:

    If you want to automatically run Receivables Update and generate the EFT files when you run the Create Direct Debit process, you can create a job definition to combine the four processes: AR_DIRDEBIT, ARUPDATE, AR_FG_PROC, and FIN2025. You can also run just three processes in one job and omit either the AR_FG_PROC or FIN2025 processes. You must also select the Auto-Remit Direct Debits option on the Create Direct Debits page. The multiprocess job runs all three or four processes for all direct debits to which the Create Direct Debits process assigns the Accepted status.

  7. (Optional) Reconcile the direct debit with the bank statement using the PS_BNK_RCN_DEBIT reconciliation rule.

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