i saw a chat on factoring but i was lost when one of the guides was that the person said to post sales invoices in the factoring account so if i am right i assume the person said post sales invoices to
nominal code: 1200-1299 (as this is were the factor acct will be)
but the slight problem is that sage is not allowing me post invoices inot this acct.
so my question is were do i post the original sales invoices that relate to the factoring list..
I've not done factoring but I would assume you would post invoices as per normal, if only some of the ledger was being factored you could set up a 'factored sales account' say 4100 pr something. You would presumably need to use a 'factoring bank account', which could be 1220 perhaps. When you are paid by the factors use this account. Then transfer from 1220 to 1200. This way you can reconcile your current account and the fctoring account. I'm guessing theer will be interest and charges too. Again transfer between the accounts so both are reconciled.
I'm sure there will be someone here who has actually gone through the process and correct any of my asumptions.
thank you very much. I had assumed that was the process but one of the answers from a previous chat confused me. But thank you for the clarity.. I will await other feedbacks but i am quite sure you are right
when you post invoices onto sage, you will post them to code 4000's for example. The factoring account is run the same as you would a loan account in the bank section ie 1200's. When invoices are paid, you use the factoring account, and if you draw money down, you do a bank transfer from the factoring account to the current account.
I have taken over the bookkeeping of a client who is factoring their invoices. I haven't been involved with factoring before but I wanted to check something. The previous bookkeeper posted all the factored customers invoices to one customer account for the Factor company. To me this doesn't seem correct, shouldn't the invoices be posted to each individual customer account rather than one customer account?
I appreciate it's probably a very basic question which is why it's not covered in the forum anywhere but I just wanted to make sure
I would post the invoices to individual customer accounts - much easier to keep track of who's paying etc A seperate bank account should then be set up for the factoring company.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Hi all - To make sense of the factoring statements and balances in future - you will require each customer to have a Customer Factoring A/C - and note the Factoring A/c no somewhere - a lot use the website reference box. However - you may require a 2nd customer a/c as the bank sometimes return the invoice's for you to chase yourself - "the value too low for us to chase" - you then tfr the balance to the 2nd account - otherwise when you send out a statements (and chase letter when bank have refused to chase) the customer doesn't know who to pay (a statement confirming "please pay bank etc." and one to pay you). If you open a bank account just for the Factoring a/c - when the customer pays allocate as usual but to this bank. As mentioned above - any money paid out is tfr to the current account. The factoring bank reconcile should then work.
Dont forget to check the bank fee's as a lot have VAT.
The sales is definately a Sales code - whether you open a 2nd sales code is up to you but I dont normally.
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Donna Curling - Complete Book-Keeping Ltd (CBKLtd) - 07939 101900
still got my bags packed when you decide that you want to run away with me xx
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Thank you Susie & Donna for your advice. Agrees with my thoughts. This is for a new client and I have inherited what I can only describe as a nightmare. Not one account, bank customer or supplier, reconciles and as I said the previous bookkeeper kept all the factor customers in one customer account so you can imaging the mess that's in. Still I shouldn't complain more work for me!!
I didn't realise this was a dating forum as well. I'll have to read it more often now!!!!
We're not just passionate about the profession Gary, we're also passionate about each other. lol.
What's life if you can't flirt with a sexual harrassment case every now and again.
Note to self, I really must read those booklets on political correctness that I use to stand my monitor on!
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
but have been lurking about xx
xx
