SageForum for UK versions of Sage 50- Help and support.

Hi, My company has just began to use a factoring company to process the payment of all our customers invoices. Up until now posting customer payments has been simple and easy however now with the prospect of factoring i am wondering how i post payments made via the factoring company. I have put a suggested order below

> Customer X places an order, the order is despatched and invoiced (invoice to include factoring companies payment terms)
> The factoring company releases 80% of the invoice value to us immediatly (Less there service charge)
> Once the custom has made the final payment (30 day credit limit) the factoring company will release the outstanding money to us.

So in your opinion how would be the best way of processing this in sage

Many thanks

I would set up a new bank account for the factoring company.

As invoices are paid, post them as receipts to the factoring bank account.

As money is drawn down from Factoring transfer it to the main bank account.