Standing order
In one sentenceAn instruction the customer gives the bank to transfer a fixed amount to a specific beneficiary on recurring dates, until the customer cancels it or its term ends.
Simply put
A standing order suits fixed recurring payments: monthly rent, an installment or a subscription. You do not need to make the transfer manually each time.
Do not forget to record each payment in the books, because a missing one shows up as a difference in the bank reconciliation, and review the list regularly to cancel what has ended.
Example
A restaurant rents a shop for 5,000 SAR a month, so it gives its bank a standing order on the first of each month to the landlord's IBAN for one year, and the accountant records the rent entry every month when it appears on the statement.
Don't confuse it with
SADAD payment systemSADAD pays a variable bill using the biller number, while a standing order transfers a fixed amount to a specific account.