Direct debits and overdue reminders


Quick file is confusing my customers, when I take a direct debit from a customer it takes a long time,

Once it’s collected then the amount sits in my customers account as credit,

Then the invoice that I initially raised for the DD, send an overdue reminder even though they have enough funds in their account,

Please can you help here?

Best regards.

The delay is inherent to the Direct Debit system and technically an invoice is only considered as paid once the funds have reached your bank account, there are various reasons why a DD may bounce in the interim period. What I would do straight away is turn off the automated invoice reminder system, that way you can individually check and OK any reminders.

DD collections will only appear as a client credit if you’re collecting ad-hoc from the client detail screen. If you have the DD linked to a recurring invoice it will automatically get assigned to that invoice and the term on the invoice if set greater that 7 days should allow for the delay in the actual DD collection.

We’re making some improvements to our GoCardless integration soon to allow ad-hoc collections to be linked to specific invoices, this negates the requirement to always use recurring invoices.

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