Hi all, just what I needed first thing in the morning. Ive just received some monthly records from a client, and I can see they have just entered into a new factoring arrangement. I use Sage Line 50 and have no idea where to start? Should I set up the factoring company as a debtor account or bank account (completely lost)! Can anyone advise me how to deal with this?
You need to set up the factoring company as a bank account on Sage. You can then post the factored sales invoices to the factoring account. When the sales invoices are paid, match the sales ledger receipts against the relevant sales invoice in the factor account.
You then need do a transfer for the funds received from the factoring account to the bank current account. At the end of this process you will be left with a balance in the factoring account. This balance should agree to the factoring charge leaved by the factoring company for their service. You need to post a bank payment for this amount from the factoring account to a nominal code in overheads called Factoring Charges (you may need to set one up in the chart of accounts if it doesnt exist).
i KNOW THIS is quite a long time but same problem but my question is how can you post sales invoices into the factoring account it is not allowing me post the invoices into code 1225.. so where does the original sales invoices so to ..
I agree with Guy. However the sales invoices will not be posted to the factoring account but to the 4000 codes, only the receipts when paid will be posted to the factoring account. The factoring co should send you a daily list of what has been received by the bank for you to post.
. Ive just received some monthly records from a client, and I can see they have just entered into a new factoring arrangement. I use Sage Line 50 and have no idea where to start? Should I set up the factoring company as a debtor account or bank account (completely lost)! Can anyone advise me how to deal with this?
