Invoice Discounting/factoring

Accounting
1

What would be the correct way to allocate this in quickfile guys as obviously not all the money comes in as the finance company take thier fee out of the invoice amount.

EXAMPLE
The client invoice including VAT was £1000 on 30 day terms.

The Finance company lend you £800 upfront, and then take thier fee (We’ll call this £50 for round numbers) when the client pays them in 30 days and forwards you the remaining £150.

So in total i only have £950 to allocate towards the £1000 invoice and have to raise an invoice of £50 for the finance company.

What is the correct way do deal with this scenario?

Thanks Keith

2

Have a look at the guide for entering payments from service providers, this is essentially the same thing.

http://help.quickfile.co.uk/main/1/accounting_for_income_from_payment_service_providers.htm

1 Like
3

Perfect, thanks Lurch :slight_smile:

4

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