Invoice Factoring for Sage

[Jodie]

My company have recently entered into a factoring agreement, and i have to post the entries into sage. I am fine with entering the invoices onto the debtors ledger. However, the factoring company release money into our bank account as soon as we submit the invoices (85%) How do i account for this in sage, and how do i account for factoring interest and charges???? Also what happenes when a customer pays, i know i have to record this against their debtor account but where does the double entry go??<BR><BR>Please some one help, i am so confused.....

[Rydell]

Basically you set up a 'bank account' for the factoring company. When money is recieved do a bank transfer from the factoring account to your business account.<BR>When monies is recieved from a customer-highlight the factoring account and do a customer payment (payment into factoring account. This will clear the invoices as they are paid to the factoring company.<BR>Bank charges and interest are done in the same way as the business acount. Put the as a bank payment to bank charges/ interest charges.<BR><BR>Hope this helps, if not my email is janine_h@hotmail.com