I need to take advantage of your experienced heads once again. I have just taken on a new Client who started Factoring in January of this year. No work has been done on Sage since this time as they didn't understand what to do with the Factoring on it. They Cash Account which to my mind means that in Sage I pay off the Customer Invoices when they are paid to the Factoring Company by way of a Factoring Bank Account I have set up in Sage, together with any charges, paid from the Factoring Bank Account and charged to a nominal code 'Factoring fees', which I have also set up. I now come to reconcile the entries, trying to do it month by month, but just can't seem to reconcile the Balance due figure on the Factoring Statements against Sage.....help am I doing something wrong?????? I think it should be an overdrawn figure on Sage but Sage here is in Credit :(
Hi Chris
Yes I have recorded drawdowns by way of a bank transfer between the factoring account and the bank current account. I must admit I haven't checked for remittances directly into the current account . I was going check the debtors when I went in tomorrow to make sure sage tallies with the factor statement. Maybe that is what is wrong.
I start with 2 reports (which I get myself from the factoring website - trying to get the client to provide them was just not worth the hassle so I cut out the middle man and asked for the log in details)
The Monthly Summary - shows the aggregate movements on the factoring accounts for the month The cash received report - shows a breakdown of what cash the factoring company has received against the debts
I post sales invoices to respective clients I go through the "cash received report" and pay off those sales invoices cleared in the month using the factoring bank account, customer receipt I post the transfers from the Factoring "bank account" to the bank current account using the bank account statement I post a bank payment to account for the monthly charges that appear on the monthly summary I perform a bank reconciliation on the factoring "bank account" - this allows me to match each section of the monthly summary and pinpoint discrepancies.
On the odd occasion, there is a timing difference when a drawdown on the 30th goes through on the 1st, but I just change the reconciliation date to the 1st so as to pick it up and reconcile it.
I then start posting my bank account which might include customer receipts and once that is also reconciled, I look at whats left in debtors and send the client a report to confirm.
Hope this helps :)
-- Edited by FoxAccountancyServices on Monday 6th of May 2013 09:59:41 PM
Sorry for my late reply but I have been so busy, just not had time to breathe lol. Thank you for this, yes this is more or less the way I have found to get everything I need. Like you it was easier to get the logon details from the Client in the end, made life so much easier and I was then able to have a good mooch through and sort out a routine.I managed to find the reason things weren't balancing ..... as Chris had suggested, one of the Customers had paid directly into the Bank Account and the Client had duly sent the payment off to Lloyds but at the stage when I wrote the post I hadn't got the relevant Bank Statement , things are now balanced thank goodness.
