How to pay using Direct Credits

Paying an employee via the Direct Credits feature

Marie Claire Saliba avatar
Written by Marie Claire Saliba
Updated over a week ago

What is the Direct Credits feature?

The Direct Credits functionality in Indigo allows you to pay employees with a direct bank transfer. It does this by creating a file with all the relevant information to issue payments to your employees, and then uploads it to be sent to the bank.

Setting Up Direct Credits

To use this facility, the payroll administrator must ensure that the following are all set up according to the agreement reached with the respective bank.

  1. Go to Payroll & Leave > Main > Settings > Payroll > Bank Accounts.

  2. Create an entry for each of the company's bank accounts, fill in the details and save.

  3. Next, update any employees to be paid by direct credits. This article will help you to set this up.

Once the above is done, you will be ready to use the Direct Credits feature.

How to Use Direct Credits

  1. Process your Payroll as usual.

  2. Once the Payroll has been finalised, the bottom right icons will change to show the next processes available. The Direct Credits icon sits between the Cheque and FS5 icons. Click on the Direct Credits icon.

  3. The system will then display the different banks that are set up in the company bank accounts. Click on the Generate and Download Direct Credits button.

  4. The next screen lists all the employees that will be paid by direct credits, with a summary to the right of the grid. Click on the download icon to download the file and send it to the bank.

  5. When you are finished, exit from the 'x' button.

Important: clicking on 'Close Run' will delete the Direct Credits run, so you would need to start the process from scratch.

Direct Credits Report

You can print the Direct Credits report via the 'Print All' button in the bottom right corner. This will show how the payments will be split from the company's bank accounts and paid into the employees' bank accounts.


  1. When employees change their payment method or bank account: If an employee changes their payment method and would need to include it in an already calculated payroll, you would need to delete and then re-calculate the calculation for that particular employee for them to be included in that payroll. You would then need to Regenerate the Direct Credits.

  2. When adjustments are made to one (or more) employee's payroll: When the payroll of an employee (or multiple employees) paid by Direct Credits has been adjusted after the Direct Credits file for that payroll has been issued and sent to the bank, regenerating the file provides another option besides downloading the whole file: downloading the discrepancy file, which shows only the difference in value from the original one. The 'Discrepancy Amount' column in the grid shows the amount difference for any employee with changes to the amount generated in the original run.

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